Senate Bill 304 Alabama 2026 Session

Updated Feb 17, 2026

Summary

Primary Sponsor: Greg AlbrittonSenator
Republican
Session: 2026 Regular Session
Title: Municipalities; business license for general contractors, subcontractors, engineers, and land surveyors provided for
Summary: SB304 would limit when Alabama municipalities can require business licenses from general contractors, subcontractors, engineers, and land surveyors, especially for those who do not have a physical business location in the city, and it sets how those licenses are calculated.
What This Bill Does
It adds a new rule (11-51-133) that restricts municipalities from automatically requiring a business license for certain professionals who work in the city but do not have a physical office there. It allows the city to license those professionals who perform work within the municipality without a local office, with fees that can be a flat amount or based on gross receipts from that work. It lets contractors exclude receipts used to calculate licenses in other municipalities if they maintain a physical place of business in the filing municipality. It also provides exemptions for those who already hold a delivery license or meet other existing exemptions, and it becomes effective October 1, 2026.

Who It Affects
General contractors, subcontractors, engineers, and land surveyors who work inside a municipality but do not maintain a physical business location there would be potentially subject to a local business license with fees based on flat rate or gross receipts.
Contractors and firms that maintain a physical business location in the municipality or who qualify for delivery-license exemptions would be exempt from obtaining a new license, and receipts from licenses in other municipalities may be deducted when calculating a local license.

Key Provisions
Adds Section 11-51-133 to limit municipalities from levying a business license on general contractors, subcontractors, engineers, and land surveyors under specific conditions.
Defines key terms (engineer, general contractor, subcontractor, land surveyor, physical business location) for applying the license.
Allows municipalities to license those who perform work within the municipality but do not maintain a physical location there, with fees either flat or based on gross receipts from work in the municipality.
Permits excluding gross receipts used to calculate a license in another municipality if the contractor maintains a physical place of business in the filing municipality.
Exempts certain workers from the new license if they are eligible for a delivery license or otherwise exempt under existing delivery-license provisions.
Effective date: October 1, 2026.

AI-generated summary using openai/gpt-5-nano on Feb 13, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Counties & Municipalities