SB85 By Senator Jones RFD Fiscal Responsibility and Economic Development Rd 1 04-FEB-20

SYNOPSIS: Under existing law, an occupational license tax based on income may be levied by a municipality on certain persons gainfully employed in the municipality.

This bill would provide that if an AdvantageSite economic development site is annexed by a municipality or is located in the police jurisdiction of a municipality, an employee employed on the site would not be subject to any occupational license tax.

The bill would also prohibit any municipality from levying a new occupational license tax or increasing any existing occupational license tax.

A BILL TO BE ENTITLED AN ACT

Relating to municipal occupational license taxes; to add Section 11-51-91.1 to the Code of Alabama 1975, to provide that employees employed on an AdvantageSite industrial development site would not be subject to a municipal occupational license tax; and to freeze the levy and rate of a municipal occupational license tax.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:

Section 1. Section 11-51-91.1 is added to the Code of Alabama 1975, to read as follows:

§11-51-91.1.

(a)(1) For the purposes of this section, the term "advantage economic development site" means an industrial development site designated as an AdvantageSite pursuant to a voluntary program managed by the Economic Development Partnership of Alabama and sponsored in part by the Alabama Department of Commerce.

(2) If any advantage economic development site is annexed by a municipality or located in the police jurisdiction of a municipality, notwithstanding the provisions of Section 11-51-90, an employee employed on the advantage economic development site shall not be subject to any occupational license tax based on the income of the employee or otherwise levied by the municipality.

(b) After the effective date of this section, notwithstanding the provisions of Section 11-51-90, no municipality may levy a new occupational license tax on any person engaging in any occupation or increase the rate on any occupational license tax on any person engaging in any occupation levied prior to the effective date of this act.

Section 2. This act shall become effective immediately following its passage and approval by the Governor, or its otherwise becoming law.

Municipalities

Taxation

Occupational Tax

Economic Development

Code Added