AL HB566

Municipalities may impose business licenses on building trade contractors (HVAC, electrical, plumbing, general contractors, home builders, subcontractors, and others) who perform work within the municipality but do not maintain a physical business location there

Business license fees must be calculated as either a flat fee or based on gross receipts from work performed within that municipality

Contractors may exclude gross receipts already used to calculate business license fees paid in another municipality where they maintain a physical place of business, preventing double taxation

Municipalities cannot require building trade businesses to obtain a municipal business license for projects on behalf of county governments located on county property, roads, bridges, or rights-of-way

Effective date: October 1, 2026