HB107 Alabama 2018 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Paul W. LeeRepresentative
Republican
Session: Regular Session 2018
Title: Municipal business licenses, not required for certain persons travelling through municipality on business, Sec. 11-51-90.2 am'd.
Summary: HB 107 adds an exemption so people traveling through a municipality on business, without operating a branch or doing business there, do not have to buy a municipal business license.
What This Bill Does
It amends Section 11-51-90.2 to exempt a person traveling through a municipality on business from purchasing a municipal business license if they are not operating a branch office or doing business there. Businesses that do operate in the municipality must still obtain a license for each location, with license calculations based on NAICS sectors (gross receipts, flat rate, etc.). The bill maintains provisions for decals on machines and allows one license to cover multiple lines, while letting municipalities create sub-sectors within NAICS sectors. It also includes special rules for banks, utilities, and other state-regulated activities, including how bank holding companies and single-sector licenses in utilities are treated.

Who It Affects
Individuals traveling through a municipality on business who are not operating a branch or doing business there are not required to obtain a municipal business license.
Businesses that actually do business in a municipality must still purchase a license for each location and pay based on NAICS-sector rules.
Banks and savings institutions have special treatment under state licensing rules; bank holding companies with additional lines may need extra licenses for those lines, and subsidiaries are not covered by these provisions.
Utilities and certain sectors may use a single license for NAICS Sector 221, while other lines of business require separate licenses.

Key Provisions
Adds an exemption: a business license is not required for a person traveling through a municipality on business if not operating a branch office or doing business in the municipality.
Maintains the requirement that taxpayers purchase a license for each location where they do business in the municipality, unless the municipality provides otherwise.
Keeps NAICS-sector based license classifications and calculation methods (gross receipts, flat rate, etc.), and allows decals for machines located within the municipality with cost limited to the decal's actual cost.
Allows one license to cover multiple lines of business for a single taxpayer and authorizes creation of sub-sectors within NAICS sectors under the law.
Addresses state-regulated vs not state-regulated activities to ensure taxation aligns with state rules, including limits on tax amounts for state-regulated portions.
Allows use of fiscal-year gross receipts data for license calculations, with an irrevocable election to continue using fiscal-year data unless the municipality consents otherwise.
Specifies bank-related provisions: licenses under state sections 11-51-130/11-51-131 are in lieu of other licenses; banks and savings and loan associations are not subject to municipal licenses under this chapter, and bank holding companies may have to pay for additional lines of business not within financial sectors; subsidiaries are excluded from these bank-related provisions.
For utilities, municipalities may issue a single license for all lines within NAICS Sector 221, with other lines requiring separate licenses; receipts for each license apply only to the lines of business within that license.
Effective date: this act becomes effective immediately upon passage and approval by the Governor.

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