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AL SB65
Bill
Status
3/7/2023
Primary Sponsor
Andrew Jones
Click for details
AI Summary
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Enacts the "Family Income Protection Act" requiring municipalities with occupational license tax rates greater than one percent on January 1, 2023, to reduce rates by at least 0.2 percent annually until reaching one percent, effective October 1 following enactment.
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Exempts occupational license taxes from applying to persons working in the police jurisdiction of a municipality or on property annexed after January 1, 2023, and exempts temporary workers (90 days or less) and severance/unemployment payments from taxation.
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Prohibits municipalities from levying new occupational license taxes or increasing existing rates effective after enactment.
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Requires counties with two or more municipalities that levied occupational taxes above one percent as of January 1, 2023, to hold a county-wide referendum at the first primary election in 2028; if voters reject continued authorization, taxes phase out at 0.2 percent annually.
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Limits municipal licensing authority to activities engaged within corporate limits and jurisdiction; requires refund procedures for taxes collected on out-of-jurisdiction income and exempts employers from remitting taxes on out-of-jurisdiction activities.
Legislative Description
Relating to municipal occupational license taxes; to add Section 11-51-91.1 to the Code of Alabama 1975, to reduce any municipal occupational license tax greater than one percent based on an annual reduction in the tax until the tax would be one percent; to provide that any occupational license tax levied by any municipality would not apply to any person performing an occupation in the police jurisdiction of the municipality or on any property annexed into the municipality after January 1, 2023; to provide for a referendum under certain conditions in certain counties in which two or more municipalities levied an occupational tax greater than one percent on January 1, 2023; to prohibit a municipality from levying a new occupational license tax or increasing the rate of any existing municipal occupational license tax; to provide for certain exceptions from any occupational taxes for certain temporary workers and for severance pay; to specify the power of a municipality pursuant to Section 11-51-90 of the Code of Alabama 1975, to license an exhibition, trade, business, vocation, occupation, or profession only within the corporate limits and jurisdiction of the municipality, to further provide for refunds and collections of the license fees and taxes, and to provide that these provisions are retroactive and declaratory of existing law.
Last Action
Indefinitely Postpone
5/31/2023