Budget & Taxes

in committee · Alabama · House Mar 17, 2026

HB 561: Municipalities; imposition of new or increased taxes or fees, ordinance required

This bill requires Alabama municipalities to pass new or increased taxes and fees through a formal ordinance rather than allowing them to be imposed without this specific legislative process. It mandates that councils provide at least 30 days' public notice before holding a hearing on such tax measures, with the notice published in local newspapers and on municipal and state websites. The law also sets different voting thresholds for council approval depending on city size, requiring a majority of the entire council including the mayor for smaller towns and a majority of elected members for larger cities. These requirements take effect on October 1, 2026, and apply to all municipalities in Alabama.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill enhances fiscal accountability by requiring formal ordinance process for municipal tax increases, promoting transparency and public oversight in budget decisions.85% confidence

Tags Local Government

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in committee · Alabama · House Mar 31, 2026

HB 649: Class 1 municipalities; creation of housing trust fund authorized

This bill authorizes Class 1 municipalities in Alabama to create and manage their own housing trust funds to address local affordable housing shortages. The legislation allows these municipalities to establish advisory committees with seven members representing finance professionals, community advocates, and low-income residents to oversee fund administration. Municipalities can fund the trust through donations, grants, bonds, and other sources without creating new taxes, and must conduct annual independent audits of the fund. The bill defines affordable housing as units available to households earning up to 120 percent of the area median income and specifies allowable uses for the funds, including building new housing units, rehabilitating existing units, and maintaining affordability for vulnerable populations.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill authorizes municipalities to create housing trust funds to address affordable housing shortages, providing funding mechanisms without new taxes, which supports fiscal management and essential community services.75% confidence ✓ HousingSupports HousingBill authorizes municipalities to create housing trust funds to address affordable housing shortages, directly advancing housing access and funding housing programs.95% confidence

Sub-Topics Affordable Housing Housing Finance

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signed · Alabama · House Mar 18, 2026

HB 532: Shelby County; sale of solid waste commodities authorized, distribution of proceeds provided for

This bill authorizes Shelby County to sell gas, minerals, and other resources recovered from its public landfill to public or private buyers. The county must use competitive bidding to select the lowest responsible bidder for these sales, with contracts limited to a maximum of 20 years. All money earned from these sales must be deposited into the county's General Fund and used for solid waste collection, landfill maintenance, and other legally permitted purposes. The law takes effect on October 1, 2026, and would apply only to Shelby County.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill generates revenue from landfill resources to fund county operations and solid waste management, strengthening fiscal capacity.75% confidence

Sub-Topics Procurement State Budget

in committee · Alabama · House Mar 10, 2026

HB 607: Taxation; Jackson Hospital & Clinic, and JHC Pharmacy exempt from state, county, and municipal fees and taxes

This bill proposes to exempt Jackson Hospital & Clinic, Inc. and JHC Pharmacy, LLC from all state, county, and municipal fees and taxes. The exemption would apply for a five-year period starting May 1, 2026, and ending September 30, 2031. The legislation would take effect immediately upon passage, removing the requirement for these two healthcare entities to pay various local and state taxes during the specified timeframe.

Topics ✗ Budget & TaxesOpposes Budget & TaxesBill exempts specific entities from taxes, reducing state revenue and limiting fiscal accountability90% confidence ✓ HealthcareSupports HealthcareBill provides tax exemptions to healthcare entities, reducing their operational costs and potentially improving service delivery.90% confidence

Sub-Topics Sales Tax Tax Incentives Hospitals Prescription Drugs Primary Care

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signed · Alabama · House Apr 17, 2026

HB 635: Choctaw County; ad valorem taxes, county commission authorized to increase, proceeds provided for

This bill authorizes Choctaw County commissioners to raise property taxes by up to five mills to fund road and bridge improvements. The tax increase would apply for a maximum of five years and must be approved by a majority of voters in the county at an upcoming election. The bill also allows the county to take on debt to finance specific infrastructure projects using the tax revenue.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill authorizes property tax increase to fund road and bridge improvements, directly supporting infrastructure funding and fiscal management through voter-approved taxation.85% confidence ✓ TransportationSupports TransportationBill authorizes county commissioners to raise property taxes specifically to fund road and bridge improvements, directly advancing transportation infrastructure.95% confidence

Sub-Topics Property Tax Revenue Bridges Roads & Highways

in committee · Alabama · House Mar 31, 2026

HB 647: Taxation; to eliminate the sales tax on food over a four year period

This bill proposes to gradually eliminate the state sales tax on food in Alabama over a four-year period, starting with a one-half percent reduction on September 1, 2026, and continuing annually until food becomes fully exempt by September 1, 2029. Currently, food is taxed at a reduced rate of two percent compared to the general four percent sales tax rate, and this legislation would phase out that remaining tax. The bill also grants counties and municipalities the authority to choose to exempt food from local sales and use taxes. This change would directly affect consumers purchasing food and businesses that sell food products within the state.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill eliminates sales tax on food, providing tax relief to consumers and reducing burden on households, particularly lower-income families.90% confidence

Sub-Topics Procurement Sales Tax

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in committee · Alabama · House Mar 3, 2026

HB 553: Tourism; creates a grant program for boosting state tourism economies affected by global trade disruptions and foreign travel slowdowns; creates a competitive grant program to fund tourism-related infrastructure projects; creates international and domestic marketing campaigns; establishes the Tourism Sector Economic Monitoring Council

This bill creates the Tourism Revenue Recovery and Global Promotion Act to support Alabama's tourism industry in response to global trade disruptions and travel slowdowns. It establishes a grant program for eligible tourism businesses like hotels and attractions to help with staff retention, facility updates, and marketing, with no single entity receiving more than $100,000. The legislation also funds international marketing campaigns to attract visitors from affected countries, supports domestic advertising for in-state travel, and provides grants for tourism infrastructure improvements like visitor centers and trail enhancements. Additionally, it creates a Tourism Sector Economic Monitoring Council composed of five appointed members who will track economic trends and advise state leaders on tourism strategies.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates grant programs and funding for tourism infrastructure and marketing, directly increasing state budget allocation for economic development and tourism recovery.85% confidence

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in committee · Alabama · House Mar 10, 2026

HB 596: Economic Development; small towns, programs established to fund businesses, reuse of properties, and other grants, administered by Alabama Department of Economic and Community Affairs; tax credit established

This bill establishes the Main Street Revival Act to support economic development in small Alabama towns with populations under 25,000. It creates four grant programs administered by the Alabama Department of Economic and Community Affairs to help businesses start or expand, preserve historic commercial buildings, support temporary retail spaces and business mentorship, and assist local governments with updating zoning and land use regulations. Additionally, the bill creates a 25 percent income tax credit for property owners who renovate eligible vacant or underutilized commercial properties. Funding for these programs depends on future legislative appropriations, and the law takes effect on January 1, 2027.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill establishes grant programs and tax credits to fund economic development in small towns, directly advancing budget and taxation through new funding mechanisms.85% confidence

Sub-Topics Income Tax Tax Credits Tax Incentives Tags Economic Development Small Business

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in committee · Alabama · House Mar 10, 2026

HB 608: Income Tax; to create the R&D Tax Credit Enhancement Act

This bill creates the R&D Tax Credit Enhancement Act to provide income tax credits for organizations in Alabama that invest in research and development, specifically targeting health sciences, biotechnology, and university-based research. The program would offer a 10% tax credit on qualified research expenses, with higher 15% credits for collaborative research involving in-state academic institutions and up to $250,000 in refundable or transferable credits for startups and small businesses with fewer than 50 employees. The Department of Revenue would administer the program, which is capped at $30 million annually, and publish annual reports on the number of credits issued and the sectors receiving support. The bill would apply to tax years beginning on or after January 1, 2027, and would require a streamlined application process for eligible organizations to claim the credits.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill creates tax credits for R&D investments, promoting economic development and funding innovation through tax incentives.85% confidence ✓ TechnologySupports TechnologyBill provides tax credits for R&D investments in health sciences, biotechnology, and university research, directly supporting technology innovation and development.75% confidence

Sub-Topics Income Tax Tax Credits

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signed · Alabama · House Mar 19, 2026

HB 537: Monroe County; senior property tax exemption, authorized; constitutional amendment

This bill proposes a constitutional amendment to allow Monroe County residents aged 65 and older to claim a senior property tax exemption on their primary single-family home. The exemption would freeze the property's assessed value at the level from the year before the exemption begins, protecting owners from future property value increases while still allowing taxes to rise if the home is expanded or improved. To qualify, homeowners must have lived in the property as their main residence for at least five years before applying, and the exemption can be claimed starting October 1, 2027. The measure requires voter approval through an election before it becomes law, and it would not affect existing homestead exemptions or changes to local tax rates.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides tax relief for seniors by freezing assessed property values, reducing tax burden for older homeowners while maintaining fiscal accountability through expansion tax provisions.85% confidence ✓ HousingSupports HousingBill provides property tax exemption for seniors, reducing housing costs for elderly homeowners and supporting affordable housing access.85% confidence

Sub-Topics Property Tax Tax Incentives Property Taxes