Bill > SB304

This bill, effective January 1, 2027, allows municipalities in Alabama to require businesses in the building trade to obtain a business license, even if they don't have a physical business location within that municipality. This applies to various contractors and trades, including certified heating and air conditioning contractors, concrete providers, electrical contractors, general contractors, residential home builders, and subcontractors, among others, with specific definitions provided for each. The license fee can be a flat rate or based on the gross receipts earned from work performed within the municipality, with gross receipts attributed to the location where the work is done. The bill also clarifies that if a business *does* have a physical business location in the municipality, the license fee can be a flat fee up to $500, or a combination of a flat fee and gross receipts, but a municipality cannot use gross receipts from work done in another jurisdiction to license a business with a physical presence in its own. Importantly, businesses listed in the bill are exempt from municipal business licenses when working on projects for a county government on county property or county-maintained infrastructure.