HB351 Alabama 2023 Session

Summary

Primary Sponsor

Tracy EstesRepresentative

Republican

Session

Regular Session 2023

Title

Relating to municipalities; to amend Section 11-51-91, Code of Alabama 1975, to further provide for the reporting of certain monies collected outside of their corporate limits and inside their police jurisdiction.

Summary

HB351 would delay when municipalities must start reporting license and other tax revenues collected outside their city limits but inside their police jurisdiction, while maintaining reporting and oversight requirements.

What This Bill Does

It amends Section 11-51-91 to push back the start of reporting outside-the-city revenues collected within a police jurisdiction. It keeps the rule that outside revenues cannot exceed half the amount charged inside the city and cannot exceed the cost of services provided. It requires annual reports detailing revenues, services, providers, and, if applicable, police and fire data, with copies sent to the Examiners of Public Accounts and made public. It also establishes penalties for non-compliance (loss of further revenue collection) and authorizes audits, while clarifying licensing in shared jurisdictions and other boundary-related rules.

Who It Affects

• Municipalities that collect license revenue or other taxes/fees within their police jurisdiction outside the corporate limits; they face delayed reporting requirements, ongoing reporting obligations, and potential audits or revenue restrictions if they fail to comply.
• Businesses, trades, or professions operating within those municipalities' police jurisdictions outside the corporate limits; their outside-the-city license revenues are limited to be at or below half of inside-city charges and not exceed the cost of provided services, with licenses attributed to the closest municipality if located near boundaries.

Key Provisions

• Amends Section 11-51-91 to delay the starting point for reporting outside-the-city license revenues collected within a police jurisdiction.
• Outside-the-city license revenues may not exceed half of the inside-city license amounts and must not exceed the cost of services provided in the police jurisdiction.
• By December 31, 2021, municipalities must notify the Department of Examiners of Public Accounts about outside-the-city collections; beginning March 1 (year to year), municipalities must prepare and file an annual report including revenues, services provided, and providers, with budgets and call data if police/fire services are provided.
• A copy of the annual report must be forwarded to the Examiners and be available to the public; failure to file within 12 months can bar further license or tax/fee collection in the outside area.
• The Legislative Committee on Public Accounts can direct audits of municipalities collecting outside-the-city revenue; municipalities may bear audit costs only if non-compliance is found.
• If a business is in an area governed by two or more municipalities, licenses go to the municipality whose boundary is closest to the business.
• Act does not repeal or modify certain public utility and related limitations, and the act is effective immediately upon governor approval.

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, delayed the starting point for certain reporting by municipalities