HB329 Alabama 2019 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Paul W. LeeRepresentative
Republican
Session: Regular Session 2019
Title: Licenses, business delivery licenses, fee per business clarified, when license to be purchased, provided for, Sec. 11-51-194 am'd.
Summary: HB 329 clarifies that a municipal delivery license is charged per business (not per vehicle) and sets how the fee is calculated based on prior-year gross receipts, with exemptions and potential future increases.
What This Bill Does
Allows a municipality to issue a fixed delivery license per business for delivering the business’s own merchandise within the city. Sets fee limits: base license up to $100, possible $10 issuance fee, and decals may be charged at cost. Ties eligibility to gross receipts from deliveries into the municipality (not more than $75,000 per license year, with potential increases up to $150,000 by ordinance) and excludes common carriers from obtaining the license. Calculations are in arrears based on the prior year's receipts, penalties up to $10 apply for not meeting criteria, and obtaining the license does not create tax nexus.

Who It Affects
Group 1: Businesses that deliver their own merchandise into a municipality and have no other physical presence there; they would be subject to a fixed delivery license (up to $100) and may incur decal costs.
Group 2: Common carriers or contract delivery services delivering on behalf of others; they are not eligible to purchase the delivery license.

Key Provisions
Delivery license is a fixed rate per business, not per vehicle.
Base license fee not to exceed $100; decal fee not to exceed actual cost; issuance fee not to exceed $10.
Gross receipts limit: receipts from deliveries into the municipality must not exceed $75,000 for the license year; can be increased every five years up to $150,000 by ordinance.
Common carriers, contract carriers, or similar services delivering for others cannot obtain the license; their receipts may count toward the cap if they also deliver with their own vehicles in the same year.
Exemption for very small businesses: if receipts within the municipality do not exceed $10,000 and there is no other physical presence, no license is required.
Calculation of the license is in arrears based on the prior year's gross receipts.
Penalty up to $10 may apply if criteria are not met after the license year.
Purchasing the delivery license does not create tax nexus.

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