HB653 Summary

• Authorizes Jefferson County Commission to levy an occupational license tax on individuals engaged in business activity in the county, with a maximum rate of 0.0045% (45/100ths of one percent) of gross receipts.

• Exempts individuals required to pay license taxes under specified Alabama Code sections (40-16-4, 40-21-50, 40-21-52, 40-21-53, 40-21-56, 40-21-60, and professional licensing sections), but allows taxation if those statutory restrictions are later removed by legislative amendment.

• Tax applies only to gross receipts subject to federal or state employment or Medicare tax withholding, with deductions allowed for health insurance premiums and retirement plan contributions.

• Excludes from taxation individuals who own businesses where income passes through to them for federal tax purposes if the business entity's gross receipts are already subject to a county entity business license tax.

• Distributes tax revenue with 20 percent to University of Alabama at Birmingham for research and construction projects and the remaining 80 percent to Jefferson County's General Fund.