Senate Bill 304 Alabama 2026 Session

Summary

Primary Sponsor

Greg AlbrittonSenator

Republican

Session

2026 Regular Session

Title

Municipalities; business license for certain businesses in the building trade provided for

Summary

SB304 would allow municipalities to license certain building-trade businesses that operate in a municipality but do not have a physical location there, with fee options and specific exclusions.

What This Bill Does

SB304 adds a new section to Alabama law defining which building-trade businesses may be licensed by municipalities when they work in the municipality but lack a physical location there. It covers HVAC, refrigeration, concrete providers, duct testing, electrical and general contractors, journeyman electricians, master gas fitters and plumbers, onsite wastewater licensees, residential builders, and subcontractors. The license can be a flat fee or based on gross receipts from work done in the municipality, with an allowance to exclude receipts used to pay licenses in other municipalities if the business has a physical location there. It also allows verification by asking for a list of licenses and receipts and bars municipal licensing of these businesses for county projects on county property or county-maintained infrastructure; the act takes effect October 1, 2026.

Who It Affects

• Building-trade contractors and subcontractors that work in a municipality but do not maintain a physical location there may be required to obtain a municipal business license, with fees either flat or based on receipts.
• Municipalities gain authority to license these businesses, set fee rules, verify receipts for exclusions, and must follow the new restrictions (such as not licensing county projects).

Key Provisions

• Adds Section 11-51-133 to regulate municipal licensing of certain building-trade businesses that lack a physical location in the municipality.
• Lists affected business categories (certified HVAC and refrigeration contractors, concrete providers, duct testing contractors, electrical contractors, general contractors, journeyman electricians, master gas fitters, master plumbers, onsite wastewater licensees, residential home builders, and subcontractors).
• Municipalities may impose a business license on those businesses that perform work in the municipality but do not maintain a physical location there; license fees can be flat or based on gross receipts.
• Allows excluding gross receipts used to calculate a license paid in another municipality if the business maintains a physical place of business in that municipality; municipalities may request a list of licenses and receipts to verify exclusions.
• Municipalities may not require these businesses to obtain a municipal license for county government projects located on county property or county-maintained roads, rights-of-way, or easements.
• Effective date of October 1, 2026.

AI-generated summary using openai/gpt-5-nano-2025-08-07 on Mar 18, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Counties & Municipalities