HB 305 Summary

• Amends Section 11-51-194, Code of Alabama 1975, to allow municipalities to require a delivery license from businesses providing rental services with no other physical presence in the municipality.

• Delivery licenses are capped at $100, with an additional issuance fee not to exceed $10, and municipalities may require decals for delivery vehicles at actual cost.

• Delivery license applies only to businesses with gross receipts not exceeding $75,000 annually (up to $150,000 by municipal ordinance) and limited to delivery, setup, and installation services.

• Businesses with annual gross receipts under $10,000 and no other physical presence are exempt from licensing requirements.

• Delivery license purchases do not establish tax nexus with the municipality for state or local tax purposes, and taxpayers have 45 days to purchase appropriate license if criteria are exceeded during the license year.