HB147 Summary

• Prohibits municipalities from imposing new occupational or license taxes on natural persons engaged in vocations, occupations, callings, or professions within the municipality.

• Allows the Alabama Legislature to authorize a municipality to impose an occupational or license tax only through passage of a local law.

• Exempts existing municipal occupational taxes that were in effect prior to February 1, 2020 from the prohibition.

• Preserves municipal authority to impose business license taxes other than occupational or license taxes on persons engaging in occupations.

• Became effective immediately upon passage and approval by the Governor (House passed February 11, 2020; Senate passed February 27, 2020).