SB 304 Alabama Senate · 2026 Regular Session

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

SB 304 would allow Alabama municipalities to charge a business license fee to general contractors, subcontractors, engineers, and land surveyors who perform work within the municipality but lack a physical office there. The fee could be a flat rate or based on revenue from work done in that municipality. The bill prevents double-charging if these professionals already pay a similar fee in another municipality where they maintain a physical office. It also clarifies that existing delivery license rules or exemptions still apply, meaning some professionals may not need a separate license. The law would take effect on October 1, 2026.

Bill status signed all 5 stages cleared

Introduction

Feb 2026

Committee Review

Apr 2026

Senate Passage

Mar 2026

House Passage

Apr 2026

Signed into Law

Apr 2026

Introduced Feb 12, 2026 Signed Apr 13, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

Engrossed → Enrolled · 4 edits · Apr 13, 2026

MODERATE

The bill was finalized as an enrolled act, changing the effective date from October 1, 2026, to January 1, 2027. The most significant policy change occurred in the section governing businesses that maintain a physical location in the municipality; the Enrolled version adds new rules allowing municipalities to charge these businesses a flat fee up to $500, a flat fee plus a percentage of gross receipts, or a percentage of gross receipts. The original Engrossed version did not include these specific fee structures for businesses with a local presence.

Scope change

The bill's scope expanded to explicitly define fee options for businesses that have a physical business location within the municipality, whereas the previous version only detailed fees for businesses without a local presence.

TIMELINE

The effective date of the act was changed from October 1, 2026, to January 1, 2027.

REQUIREMENT

New fee structures were added for businesses maintaining a physical location in the municipality, allowing fees of up to $500 flat, a flat fee plus gross receipts, or gross receipts alone.

The language regarding how gross receipts are attributed was clarified to ensure they are assigned to the municipality where the work is performed, regardless of the business's physical location.

TECHNICAL

The bill title was updated to reflect that it provides for the levying of certain business licenses by municipalities.

Floor votes

How they voted

This bill passed the Senate by voice vote (no roll call recorded).

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Apr 8, 2026

Upper · Passed

Gudger Motion to Concur In and Adopt House Amendment - Adopted Roll Call 1263

upper

Apr 8, 2026

Lower · Passed

Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 1293

lower

Apr 8, 2026

Lower · Passed

Lee motion to Table - Adopted Roll Call 1292

lower

Apr 8, 2026

Introduced

Hill 1st Amendment Offered

lower

Apr 8, 2026

Lower · Passed

Motion to Adopt - Adopted Roll Call 1291

lower

Apr 8, 2026

Introduced

Lee 1st Amendment Offered

lower

Apr 1, 2026

Lower · Passed

Reported Out of Committee Second House

lower

Mar 19, 2026

Lower · Passed

Pending Committee Action in Second House (Transportation, Utilities and Infrastructure)

lower

Mar 17, 2026

Upper · Passed

Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 919

upper

Mar 17, 2026

Upper · Passed

Albritton motion to Adopt - Adopted Roll Call 918

upper

Mar 17, 2026

Introduced

Elliott 2nd Substitute Offered

upper

Mar 17, 2026

Upper · Passed

Albritton motion to Table - Adopted Voice Vote

upper

Mar 17, 2026

Introduced

County and Municipal Government 1st Substitute Offered (County and Municipal Government)

upper

Feb 17, 2026

Upper · Passed

Reported Out of Committee House of Origin

upper

Feb 12, 2026

Upper · Passed

Pending Committee Action in House of Origin (County and Municipal Government)

upper

1 primary · 0 co-sponsors