SB305 Alabama 2019 Session

Updated Feb 26, 2026

High Interest

Summary

Primary Sponsor: Jimmy Holley
Republican
Session: Regular Session 2019
Title: Municipal occupational taxes, prohibited if not already in effect unless authorized by local law
Summary: SB 305 would ban new municipal occupational taxes in cities that don’t already have one, unless a local law authorizes it, while preserving existing taxes and licensing authority.
What This Bill Does
Prohibits a municipality that does not already have an occupational tax from imposing one unless the Legislature provides local authorization. Allows the Legislature, by local law, to authorize a municipality to impose an occupational tax on the income from work within the city. Keeps any existing municipal occupational taxes in effect and does not repeal or alter the authority to impose municipal business licenses. Becomes effective immediately after the Governor signs it into law.

Who It Affects
Municipalities without an existing occupational tax: barred from imposing such a tax unless local authorization is granted.
Natural persons (individual workers) who earn income within a municipality: would be taxed only if local authorization exists; otherwise, they would not be taxed under this bill.

Key Provisions
Section 1(a): prohibits municipalities without an existing occupational or license tax from taxing the gross receipts of natural persons from work within the municipality.
Section 1(b): allows the Legislature to authorize a municipality to impose the tax by local law.
Section 1(c): preserves existing municipal occupational taxes that are already in effect prior to the act.
Section 1(d): preserves current authority for municipalities to impose municipal business licenses.
Section 2: the act becomes effective immediately after 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: Occupational Tax