HB 107 Summary

• Amends Section 11-51-90.2 of the Code of Alabama 1975 regarding municipal business license requirements for taxpayers doing business in municipalities.

• Establishes a comprehensive 2002 North American Industrial Classification System (NAICS)-based framework for classifying businesses into sectors with specified license calculation methods (gross receipts, flat rate, number of employees, or square footage).

• Exempts persons travelling through a municipality on business from obtaining a business license if they are not operating a branch office or doing business in the municipality.

• Clarifies that municipalities may create sub-sectors within NAICS categories, levy additional municipal taxes (lodging, gasoline, tobacco, etc.), and issue decals for vending machines and amusement devices, while respecting state-regulated business limitations.

• Becomes effective immediately upon passage and approval by the Governor.