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Read. Follow. Verify.Alabama regulates municipal business licensing fees for construction and building trade contractors
Last action · April 13, 2026: EnactedSponsor: Greg Albritton
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What This Bill Does
Municipalities in Alabama are authorized to charge business license fees to out-of-town and local building trade contractors based on flat fees or , while being prohibited from requiring such licenses for work done on county property. The law takes effect on January 1, 2027.
Construction contractors, subcontractors, and building trade professionals operating across municipal boundaries face new standardized fee structures and fee limits capped at $500 for flat local licensing, while county-owned project work is exempted.
- Municipal business licenses in Alabama are governed by state statute, which sets parameters on how local governments can levy fees on businesses operating within or across city limits. context
Who It Affects
Groups the bill's text affects, as described in the record. Being affected is not a position for or against it.
Construction contractors and subcontractors
Contractors performing work across municipal boundaries are subject to local business license fees calculated by flat fees or gross receipts.
Municipalities
Cities gain explicit statutory authority to levy specific business license fee structures on building trade contractors operating within their borders.
County governments
County projects and property are exempted from municipal business license requirements for contractors performing work on behalf of the county.
Key Facts
You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.
Frequently Asked Questions
Can a municipality charge a business license fee to a contractor based outside the city limits?
Are contractors required to get a municipal business license for projects on county property?
What is the maximum flat fee a municipality can charge a local business in the building trade?
What else do you want to know?
News Coverage
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Votes, people, money & the original sourceWhere This Stands
Current status: Became law.
Procedural history
28 actions- Apr 13, 2026SenateEnrolledEnacted
- Apr 9, 2026HouseSignature Requested
- Apr 9, 2026SenateEnrolledDelivered to Governor
- Apr 9, 2026SenateEnrolled
- Apr 8, 2026SenateReady to Enroll
- Apr 8, 2026SenateGudger Motion to Concur In and Adopt House Amendment - Adopted Roll Call 1263
Show 22 earlier actions
- Apr 8, 2026HouseFloorMotion to Read a Third Time and Pass as Amended - Adopted Roll Call 1293
- Apr 8, 2026HouseLee motion to Table - Adopted Roll Call 1292
- Apr 8, 2026HouseHill 1st Amendment Offered
- Apr 8, 2026HouseMotion to Adopt - Adopted Roll Call 1291
- Apr 8, 2026HouseLee 1st Amendment Offered
- Apr 8, 2026HouseThird Reading in Second House
- Apr 1, 2026HouseRead for the Second Time and placed on the Calendar
- Apr 1, 2026HouseCommitteeReported Out of Committee Second House
- Mar 19, 2026HouseCommitteePending Committee Action in Second House
- Mar 19, 2026HouseIntroducedRead for the first time and referred to the House Committee on Transportation, Utilities and Infrastructure
- Mar 17, 2026SenateEngrossed
- Mar 17, 2026SenateFloorMotion to Read a Third Time and Pass as Amended - Adopted Roll Call 919
- Mar 17, 2026SenateAlbritton motion to Adopt - Adopted Roll Call 918
- Mar 17, 2026SenateElliott 2nd Substitute Offered
- Mar 17, 2026SenateAlbritton motion to Table - Adopted Voice Vote
- Mar 17, 2026SenateCounty and Municipal Government 1st Substitute Offered
- Mar 17, 2026SenateThird Reading in House of Origin
- Feb 17, 2026SenateRead for the Second Time and placed on the Calendar
- Feb 17, 2026SenateCommitteeReported Out of Committee House of Origin
- Feb 17, 2026SenateCounty and Municipal Government 1st Substitute
- Feb 12, 2026SenateCommitteePending Committee Action in House of Origin
- Feb 12, 2026SenateIntroducedRead for the first time and referred to the Senate Committee on County and Municipal Government
Version history
Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.
View official text →Voting Record
Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 1293
Total
105
- Yes
- 92
- No
- 4
- Present
- 0
- Not voting
- 5
- Abstain
- 4
How they voted (1)
Show 1 earlier roll call
Gudger Motion to Concur In and Adopt House Amendment - Adopted Roll Call 1263
Total
35
- Yes
- 33
- No
- 0
- Present
- 0
- Not voting
- 2
- Abstain
- 0
How they voted (1)
Lobbying Activity
No state lobbying filings in our records match this bill. Federal lobbying reports (LDA) cover Congress, so they are not listed on state bills.
Full breakdown
Who this bill affects and the strongest case for and against it, written only from the bill’s own text.
Sponsors
Discoveries
Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.
Standardized Municipal Licensing for Trades
The legislation establishes clear statutory boundaries for how municipalities can levy fees on local versus out-of-town construction contractors.
Connected Entities
Sources
alison.legislature.state.al.us
Analysis Score
0–100- Significance65How much this matters to a regular citizen
- Controversy20Intensity of disagreement among stakeholders
- Entertainment5Compellingness for a non-policy-wonk reader
- Buzz15Current news / social attention level
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