SB173 Alabama 2020 Session

Summary

Primary Sponsor

Andrew JonesSenator

Republican

Session

Regular Session 2020

Title

Municipal occupational taxes, prohibited if not already in effect unless authorized by local law

Summary

SB 173 would stop municipalities that don’t already have an occupational tax from starting one unless the Legislature authorizes it for that city, while preserving existing taxes.

What This Bill Does

It would prohibit municipalities that do not already have an occupational or license tax from imposing one on natural persons derived from vocations within the municipality unless authorized by a local law. The Legislature, by local law, may authorize a municipality to impose such a tax. It would not affect an occupational tax already in effect before February 1, 2020, and it would not affect other types of municipal business license taxes. The act would take effect immediately after the Governor signs it into law.

Who It Affects

• Municipalities that do not currently have an occupational tax, which would be barred from imposing one unless local authorization exists.
• Natural persons (residents or workers) in those municipalities, who would only be subject to an occupational or license tax if the municipality has been authorized by local law to impose it.

Key Provisions

• Section 1(a): Prohibits municipalities without an existing occupational or license tax from imposing such a tax on natural persons unless authorized by local law.
• Section 1(b): The Legislature may authorize a municipality to impose an occupational or license tax by local law.
• Section 1(c): Does not affect or repeal existing municipal occupational taxes in effect prior to February 1, 2020.
• Section 1(d): Does not affect authority to impose other municipal business license taxes beyond occupational or license taxes on individuals.
• Section 2: Becomes effective immediately following its passage and approval by the Governor.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Occupational Tax