Gov. Kay Ivey signed into law Tuesday a bill requiring the Alabama House of Representatives and Senate to approve local legislation before cities can enact occupational taxes.
The new law does not impact current occupational taxes but is retroactive to Feb. 1, which would prevent the City of Montgomery from enacting a 1% tax approved by the City Council Feb. 18.
“We appreciate all members of the House of Representatives and Senate who voted in favor of this bill (HB 147),” said Alabama Farmers Federation and Alfa Insurance President Jimmy Parnell. “I especially want to thank those who championed its passage including sponsor Rep. Chris Sells, R-Greenville; Rep. Reed Ingram, R-Montgomery; Sen. Clyde Chambliss, R-Prattville; and Sen. Will Barfoot, R-Montgomery.
The Federation has been headquartered in Montgomery for 99 years. Parnell said the organization was deeply concerned about the financial burden an additional 1% tax would place on employees.
The Senate approved the measure by a vote of 27-7 Feb. 27, clearing the way for Gov. Ivey’s signature.
“We will continue to work with county, city and state elected officials to improve the economy, education, infrastructure and public services in Montgomery,” Parnell added.