SB207 Alabama 2014 Session

Summary

Primary Sponsor

Vivian Davis FiguresSenator

Democrat

Co-Sponsors

Tammy IronsPaul BussmanJerry L. FieldingBill HightowerPhillip W. WilliamsCam WardTom WhatleyJ.T. WaggonerScott BeasonGeorge M. “Marc” KeaheyLinda Coleman-MadisonWilliam “Bill” M. BeasleyGreg J. ReedPriscilla DunnGerald H. AllenRoger Bedford, Jr.Del MarshHarri Anne SmithDick BrewbakerRodger SmithermanClay ScofieldQuinton RossMark Slade Blackwell

Session

Regular Session 2014

Title

Municipalities, business license tax on residential rental property, levy on per unit basis prohibited, Sec. 11-51-90.3 added

Summary

SB207 bars municipalities from charging per-unit business license taxes on residential rental property unless they were already doing so before January 1, 2014.

What This Bill Does

The bill adds section 11-51-90.3 to Alabama law to restrict per-unit business license taxes on residential rentals. It says a municipality may not impose such a tax unless it was being imposed prior to January 1, 2014. It clarifies that a 'business license tax' does not include lodging taxes, allows certain development-related fees, and lists exemptions for certain districts or boards. The act becomes effective immediately after the governor signs it.

Who It Affects

• Municipal governments in Alabama: they cannot impose new per-unit business license taxes on residential rental real estate unless they had one before 1/1/2014, with some pre-existing taxes potentially continuing.
• Residential rental property owners and landlords in municipalities: their ability to be taxed per unit is limited; if their city did not have a pre-2014 per-unit tax, they generally cannot be taxed on a per-unit basis, while cities with pre-2014 per-unit taxes may continue under those rules.

Key Provisions

• Provision 1: A municipality may not impose a business license tax on the rental of residential real estate on a per-unit basis unless it was imposing such a tax prior to January 1, 2014.
• Provision 2: The section excludes lodging taxes from being treated as a business license tax, allows certain development-related fees, provides exemptions for specific districts or boards (e.g., Alabama improvement districts, capital improvement districts, industrial development boards, water and sewer boards), and makes the act effective immediately after governor 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

Municipal