HB245 Alabama 2013 Session

Summary

Primary Sponsor

Greg Wren

Republican

Session

Regular Session 2013

Title

Taxation, only Alabama Legislature may levy an occupational tax in a Class 3, 4, and 5 municipality

Summary

HB245 would restrict occupational taxes in Class 3-5 municipalities to laws enacted by the Alabama Legislature, not by the municipalities themselves.

What This Bill Does

If passed, the bill would prevent Class 3, 4, and 5 municipalities from levying occupational taxes on people who work there unless the Legislature passes a local law to authorize it. Any occupational taxes already in place at the time the act becomes law would remain in effect. The act would take effect when it is signed by the Governor, with a retroactive note applying from October 1, 2012.

Who It Affects

• Municipalities classified as Class 3, 4, or 5 would lose the power to independently levy occupational taxes; only the Legislature could authorize such taxes via local law.
• People who work in those municipalities would be taxed only if the Legislature passes a local law authorizing the tax; otherwise, the municipality could not impose it.

Key Provisions

• Only the Legislature, by local law, may levy an occupational tax in a Class 3, 4, or 5 municipality (retroactive to October 1, 2012).
• Existing municipal occupational taxes in effect as of the act’s effective date are preserved, and the act becomes effective immediately after its passage and the Governor's approval.

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

Subjects

Taxation