Municipalities, procedure regarding taxes or license fees further provided for
Summary
SB249 would change the procedure Alabama municipalities must follow before adopting a new tax or license fee, or before increasing an existing tax or license fee. Under the bill, such actions could only be taken by ordinance, rather than by ordinance or resolution as existing law allows. The bill also requires that the ordinance be introduced first, followed by a public hearing held after at least 30 days’ notice.
The notice must include the substance of the proposed ordinance, the amount of any new or increased tax or fee, the date/time/place of the hearing, and information on how to obtain a copy of the ordinance. It must be published in a newspaper of general circulation or in the same manner used for ordinance publication under existing law, and a copy must also be posted on the municipality’s website, if it has one, and on the Secretary of State’s open meetings website. After the hearing, the council may consider the ordinance at a regular council meeting. The bill would take effect October 1, 2025.
Impact
SB249 would amend Section 11-45-2 of the Code of Alabama 1975 to add procedural safeguards specifically for municipal tax and license fee actions. It would narrow municipal authority by requiring an ordinance, notice, and public hearing before adoption of any new tax or fee or any increase in an existing one, while leaving other permanent ordinances subject to the existing adoption rules. The bill would also impose new publication and posting requirements on municipalities and create a clearer public notice process for affected residents and businesses.
Sentiment
The available record shows little direct debate, but the bill’s structure suggests a generally transparency-focused approach to municipal taxation. Because it was referred to the County and Municipal Government committee and later became indefinitely postponed, the legislative outcome indicates the measure did not advance, even though no recorded votes or transcript comments are available to show explicit support or opposition. Overall, the bill appears to have been framed as a procedural reform rather than a substantive tax increase or decrease.
Contention
The main point of contention is likely the added procedural burden on municipalities, especially the requirement that tax and fee changes be made only by ordinance and only after 30 days’ notice and a public hearing. Municipal officials may view the bill as limiting flexibility and slowing revenue measures, while supporters would likely argue that taxpayers and businesses deserve more notice and public input before local taxes or license fees are raised. The requirement to post notices on the Secretary of State’s open meetings website may also raise administrative concerns for smaller municipalities.