HB439 Alabama 2020 Session

Summary

Primary Sponsor

Chip BrownRepresentative

Republican

Session

Regular Session 2020

Title

Class 2 municipalities, to provide that a municipality may not levy business license in its police jurisdiction unless they offer police and fire services to that area, Sec. 11-51-91 am'd.

Summary

HB439 would stop Class 2 municipalities from charging business licenses in areas of their police jurisdiction outside the city if they do not provide police and fire services there.

What This Bill Does

It adds a rule that a Class 2 municipality may not levy any business, trade, or professional licenses in the area of its police jurisdiction outside the corporate limits if it does not provide both police and fire services in that area. If the municipality does provide services, the existing licensing framework remains in place (rates may not exceed half the corporate-limit rate and total license revenues may not exceed the cost of services). The act also keeps notice and annual reporting requirements when licenses are in effect, including 30-day notice for licenses adopted after 2015 and posting notices where available.

Who It Affects

• Class 2 municipalities that do not provide police and fire services to the area within their police jurisdiction outside the corporate limits would be prohibited from levying any licenses there.
• Businesses, trades, or professionals operating within those areas would no longer be subject to a municipal business license from that particular municipality in that area.

Key Provisions

• Prohibits Class 2 municipalities from levying any business, trade, or professional licenses in the area within their police jurisdiction outside the corporate limits if the municipality does not provide police and fire services there.
• If a Class 2 municipality does provide police and fire services to the area, the license framework continues: license fees cannot exceed half the amount charged inside the corporate limits, total license revenue cannot exceed the cost of services, and licenses apply to all businesses within the police jurisdiction; annual reporting and notice requirements also apply.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Police Jurisdiction