AlabamaStarting in 2027, municipalities may license building trades for local work
Starting January 1, 2027, Alabama municipalities may license certain building and construction businesses for local work, with different fee rules for businesses with a local office.
What it does
Starting January 1, 2027, municipalities may require certain building and construction businesses without a local office to get a license for work there. The fee may be flat or based on receipts from that local work.
Starting January 1, 2027, a municipality may license listed businesses that have a local office and work there. Fees may include flat charges up to $500 and may count only receipts from work in that municipality.
Starting January 1, 2027, listed businesses do not need a municipal license for work on county government projects at specified county sites.
Argument forCounting job-site work where it happens may help municipalities charge fees for local work while keeping receipts from other places out of the calculation.
Argument againstBusinesses could face added license costs when they work in a municipality, including fees tied to the money they earn there.
More detail
Municipalities may require listed businesses without a local physical business location to get a license for work they do in the municipality. This covers specified building and construction businesses, including contractors, electricians, and concrete providers. A concrete provider is excluded in a municipality where it is eligible for a delivery license under another law. The license fee may be flat or based on gross receipts from work performed in the municipality. The law takes effect January 1, 2027.
Municipalities may require listed businesses with a local physical business location to get a license for work they perform there. This covers the same specified businesses when they have a physical business location in the municipality and perform work there. A temporary job site, trailer, or temporarily stored equipment or materials does not count as a physical business location. A municipality may charge a flat fee up to $500, a flat fee up to $500 plus a fee based on local gross receipts, or a fee based on those receipts alone. It may not count receipts from work performed in another jurisdiction. The law takes effect January 1, 2027.
Municipalities may not require a listed business to get a license for specified county government projects. The exception applies when a business works on a project for a county government located on county property or a county-maintained road, bridge, right-of-way, or easement. The law takes effect January 1, 2027.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Apr 13EnactedBecame Law
- Apr 9EnrolledTo Governor
- Apr 9Delivered to GovernorMinor
- Apr 9Signature Requested
- Apr 8Third Reading in Second House
- Vote recorded Lee motion to Table - Adopted Roll Call 1292. Result: pass.Lower
- Vote recorded Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 1293. Result: pass.Lower
- Vote recorded Motion to Adopt - Adopted Roll Call 1291. Result: pass.Lower
- Vote recorded Gudger Motion to Concur In and Adopt House Amendment - Adopted Roll Call 1263. Result: pass.Upper
- Vote recorded Third Reading in Second House. Result: pass.Lower
- Apr 8Lee 1st Amendment OfferedMinor
- Apr 8Motion to Adopt - Adopted Roll Call 1291Major
- Apr 8Hill 1st Amendment OfferedMinor
- Apr 8Lee motion to Table - Adopted Roll Call 1292Major
- Apr 8Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 1293Passed House
- Apr 8Gudger Motion to Concur In and Adopt House Amendment - Adopted Roll Call 1263Major
- Apr 8Ready to Enroll
- Apr 1Reported Out of Committee Second House
- Apr 1Read for the Second Time and placed on the Calendar (Transportation, Utilities and Infrastructure)Minor
- Mar 19Read for the first time and referred to the House Committee on Transportation, Utilities and InfrastructureMinor
- Mar 19Pending Committee Action in Second House (Transportation, Utilities and Infrastructure)
- Mar 17Third Reading in House of Origin
- Vote recorded Albritton motion to Adopt - Adopted Roll Call 918. Result: pass.Upper
- Vote recorded Third Reading in House of Origin. Result: pass.Upper
- Vote recorded Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 919. Result: pass.Upper
- Mar 17County and Municipal Government 1st Substitute Offered (County and Municipal Government)Minor
- Mar 17Albritton motion to Table - Adopted Voice VoteMajor
- Mar 17Elliott 2nd Substitute OfferedMinor
- Mar 17Albritton motion to Adopt - Adopted Roll Call 918Major
- Mar 17Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 919Passed Senate
- Mar 17Engrossed
- Feb 17County and Municipal Government 1st Substitute (County and Municipal Government)
- Feb 17Reported Out of Committee House of Origin
- Feb 17Read for the Second Time and placed on the Calendar (County and Municipal Government)Minor
- Feb 12Read for the first time and referred to the Senate Committee on County and Municipal GovernmentMinor
- Feb 12Pending Committee Action in House of Origin (County and Municipal Government)Introduced
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