SB306 Alabama 2016 Session

Summary

Primary Sponsor

Cam Ward

Republican

Session

Regular Session 2016

Title

Municipality or county, business license tax, home health agency and hospice, tax due only where headquarters or branch office is located, tax not to be levied only because of delivery of service by employees, Sec 11-51-90.4 added

Summary

SB306 would bar many small municipalities and counties from requiring certain qualified health providers to have local business licenses, unless the provider has a headquarters or branch there, and it would not impose license requirements just because a provider visits a patient or delivers equipment in the area.

What This Bill Does

Creates a new rule (Section 11-51-90.4) to define Class 7/8 municipalities and qualified providers. It prevents these municipalities and their agents from requiring a municipal or county business license for qualified providers unless the provider has headquarters or a branch office in that locality. It also stops license taxes or fees from being charged simply because a provider visits a patient or delivers equipment in the area, including delivery licenses. For services or products paid for by Medicare, Medicaid, or other third-party payers, license requirements apply only if the provider has HQ or a branch in that locality, and the act becomes effective immediately after approval.

Who It Affects

• Qualified providers (home health care or hospice agencies, durable medical equipment suppliers, prosthetics, orthotics, or health care supplies) who would not need to buy a local business license in Class 7/8 municipalities or counties unless they have a headquarters or branch there; and they would not owe license taxes simply for patient visits or equipment deliveries in those areas.
• Class 7/8 municipalities and counties (and their agents, including private auditing firms) whose license requirements and fees for these providers would be restricted unless the provider maintains HQ or a branch in the locality.
• Note: Providers with services or products paid by Medicare/Medicaid/third-party payers would face license requirements only if HQ or branch is located in the area.

Key Provisions

• Defines Class 7/8 municipalities and qualified providers for the purposes of license exemptions, and clarifies HQ or branch office requirements.
• Prohibits requiring a municipal or county business license from Class 7/8 municipalities or counties for a qualified provider unless the provider has its headquarters or a branch in the municipality or county.
• Prohibits requiring municipal or county business licenses or license taxes based solely on visits to a patient or delivery of equipment or supplies within the locality, or for services/products delivered where the patient resides.
• Extends the license exemption to services or products reimbursed by Medicare, Medicaid, or other third-party payers, again except where HQ or branch is located in the area.
• Adds Section 11-51-90.4 to Alabama law and states the act takes effect immediately after passage and 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