SB44 Alabama 2022 Session

Updated Feb 22, 2026

Summary

Primary Sponsor: Andrew JonesSenator
Republican
Session: Regular Session 2022
Title: Municipalities, occupational tax, phased out not to apply in police jurisidiction, new taxes prohibited, Sec. 11-51-91.1 added.
Summary: The bill would phase out and ultimately repeal municipal occupational license taxes on personal income, while barring new taxes or increases and offering targeted exemptions.
What This Bill Does
It creates the Family Income Protection Act. It starts a phased reduction of the maximum municipal occupational license tax rate, with not less than a 0.1% cut each October after the act takes effect, until the tax is repealed. The rate is capped at the level it was on January 1, 2021. The tax would not apply to people working in the municipality's police jurisdiction or on property annexed after January 1, 2021. Municipalities are also prohibited from creating new occupational license taxes or raising existing ones.

Who It Affects
Residents and workers in municipalities who currently pay an income-based occupational license tax; their tax rate would be gradually reduced each year until it is eliminated.
Workers in a municipality's police jurisdiction or on property annexed after January 1, 2021; they would be exempt from the occupational license tax.

Key Provisions
Adds Section 11-51-91.1 creating the Family Income Protection Act and setting the phased reduction schedule for the maximum occupational tax rate.
Starting October 1 after the act's effective date, reduces the maximum tax rate by at least 0.1 percentage point each October until the rate reaches zero and the tax is repealed; the rate is capped at the January 1, 2021 level.
Exempts from the tax any person performing a vocation in the police jurisdiction or on property annexed into the municipality after January 1, 2021.
Prohibits municipalities from levying a new occupational license tax or increasing the rate of any existing one.

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