HB308 Alabama 2017 Session

Summary

Primary Sponsor

Paul W. LeeRepresentative

Republican

Session

Regular Session 2017

Title

Licenses, business delivery licenses, cap penalty for failure to purchase, Sec. 11-51-194 am'd.

Summary

HB308 caps penalties for failing to buy a business delivery license and clarifies how delivery licenses work for certain businesses in municipalities.

What This Bill Does

It caps the penalty for not purchasing a business delivery license at the license cost. It sets the maximum delivery license fee at $100 and allows municipalities to review and adjust it every five years, with decals for delivery vehicles available at cost. It defines delivery licenses, limits gross receipts from deliveries into the municipality to $75,000 per license year (potentially rising to $150,000 every five years), and states that common carriers cannot obtain the license. If a business meets the criteria, it must buy either the delivery license or a regular business license; if it fails criteria, it must obtain all appropriate licenses and can be charged a penalty up to the license cost; the license is calculated in arrears and does not automatically create tax nexus.

Who It Affects

• Businesses that deliver merchandise into a municipality but have no other physical presence there, who would need to obtain a delivery license or a regular business license and could face penalties for non-compliance.
• Municipalities that issue delivery licenses, set license fees, regulate decals, and enforce the delivery license rules within their jurisdiction.

Key Provisions

• Penalty for not purchasing a business delivery license capped at the cost of the license.
• Delivery license fee not to exceed $100, with five-year reviews and potential adjustments; decals may be required and their cost cannot exceed the actual cost to the municipality.
• Delivery license is defined as a fixed-rate license for the limited privilege of delivering the taxpayer's own merchandise into the municipality, with a revenue cap of $75,000 (increasing to up to $150,000 every five years) and a provision that common carriers are not eligible.
• If criteria are met, the taxpayer must purchase either a delivery license or a regular business license; if criteria are not met, the taxpayer must obtain all appropriate licenses and may face a penalty up to the license cost.
• License amounts are calculated in arrears based on the prior license year's gross receipts; purchasing a delivery license does not establish tax nexus, nor does it automatically negate existing nexus considerations.

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

Subjects

Licenses and Licensing