HB664 Alabama 2011 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Merika ColemanSenator
Democrat
Co-Sponsors: Gregory Canfield Jack Williams Allen Farley Juandalynn Givan
Session: Regular Session 2011
Title: Jefferson Co., business license tax, county commission authorized to levy, exceptions and limits, distrib. to county general fund
Summary: HB664 lets Jefferson County impose an annual Entity Business License Tax on certain non-individual businesses based on gross receipts, with a defined minimum, a rate cap, and deductions related to state licenses.
What This Bill Does
The county would authorize a yearly Entity Business License Tax for qualifying businesses, measured by gross receipts after specified deductions. The tax rate is capped at 0.025% of annual gross receipts, with a $25 minimum and an initial $15,000 maximum, plus an initial $25 issuance fee. For businesses with multiple activities, the tax applies to activities not taxed by the state and allows deductions or credits for state license costs; funds collected go to the County General Fund, and the ordinance must be posted online 15 days before adoption. The governing body can adjust minimum and maximum amounts every five years by up to 5%. The tax does not apply to employee wages.

Who It Affects
Jefferson County business entities (non-individuals) operating in the County will owe the Entity Business License Tax based on gross receipts, with certain deductions allowed if they also pay state licenses.
Jefferson County and its finances will collect the tax and deposit net proceeds into the County General Fund to fund county operations; exemptions include employees, and the county will administer the tax with potential penalties and fees if delinquent.

Key Provisions
Allows the Jefferson County Commission to levy an Entity Business License Tax on business activity conducted in the County, measured by gross receipts after allowed deductions, for non-individuals.
Maximum rate is 1/40th of 1 percent (0.025%) of annual gross receipts; minimum tax is $25 per year; initial maximum tax is $15,000 per year; initial issuance fee is $25.
Provides two deduction options for taxpayers also paying state licenses: (1) deduct one-half of receipts from activities with state tax-exemption or (2) deduct one-half of the amount paid for state licenses (excluding certain fees). Passive income (except rental) can be deducted from gross receipts; rental income is excluded from deductions.
If a business has multiple activities, the county can tax only those activities not subject to state tax; no same receipts may be used for multiple licenses; penalties, interest, and fines can exceed the maximum tax for past-due amounts.
Taxes are deposited into the County General Fund and used for lawful county purposes; the county cannot levy this tax on employee compensation; the governing body can adopt related rules and regulations.
The county must post the proposed ordinance on its website for at least 15 days before adoption; the tax can be adjusted every five years by up to 5% (min or max or both).

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Jefferson County