House Bill 561 Alabama 2026 Session

Summary

Primary Sponsor

Jim CarnsRepresentative

Republican

Session

2026 Regular Session

Title

Municipalities; imposition of new or increased taxes or fees, ordinance required

Summary

HB561 would require municipalities to pass any new taxes or increases to existing taxes or fees strictly by ordinance, with mandatory public hearings and notice before adoption.

What This Bill Does

The bill requires that any new tax or fee increase be enacted by ordinance (not by resolution) and prohibits adoption at the initial introduction without a public hearing. It mandates a public hearing after at least 30 days’ notice, with notices detailing the proposal, amounts, date/time/place, and how to obtain the ordinance; notices must be published in a newspaper and posted online (municipal website and the Secretary of State open meetings site). After the hearing, the council can consider the ordinance at a regular meeting, and there are specific voting rules for permanent-operation ordinances based on city size; the bill also states that contracts for bids must be awarded by resolution. It also establishes a 2026 effective date, with transitional provisions for actions taken after October 1, 2025.

Who It Affects

• Municipalities (cities and towns) would have to adopt new taxes or fee increases by ordinance and follow public-notice and hearing requirements.
• Residents and local businesses would have enhanced notice and opportunity to comment on proposed tax or fee changes before adoption.

Key Provisions

• New or increased taxes/fees must be enacted by ordinance, not by resolution.
• Public hearing required before adoption, with at least 30 days of notice.
• Notice must include the substance, amount, date/time/place, and where to obtain the proposed ordinance; published in local newspaper and posted online (municipal website and SOS open meetings site).
• After the public hearing, the ordinance may be considered at a regular council meeting.
• Permanent-operation ordinance voting rules based on city size (over 12,000 inhabitants: majority of elected council; under 12,000: majority of the whole council including mayor).
• Transitional provision: actions on or after October 1, 2025 are subject to these rules.
• A council shall award no contract on bids except by resolution.
• Effective date: October 1, 2026.

AI-generated summary using openai/gpt-5-nano-2025-08-07 on Mar 3, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Counties & Municipalities