| SYNOPSIS: | Under existing law, the state imposes license fees on the privilege of transacting business in this state, and municipalities are prohibited from levying business license fees. |
| This bill would propose an amendment to the Constitution of Alabama of 1901, to provide that any city or municipality in Etowah County may impose and collect a business license tax on persons engaged in the business of buying, selling, or renting real estate. |
To propose an amendment to the Constitution of Alabama of 1901, relating to Etowah County, providing further for license taxes on certain real estate operations and transactions.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. The following amendment to the Constitution of Alabama of 1901, is proposed and shall become valid as a part of the Constitution when all requirements of this act are fulfilled:PROPOSED AMENDMENT
(a) In order to allow for the orderly and efficient collection of municipal business license taxes in Etowah County with respect to corporations, firms, brokers, agents, and others in the business of buying, selling, leasing, or representing others in the purchase, sale, or lease of real property in Etowah County, the Legislature may, by local law, provide for the imposition and collection of taxes as follows:
(1) Any city or municipality within Etowah County may fix and collect license taxes pursuant to Sections 11-51-90 and 11-51-91, Code of Alabama 1975, for any business, trade, or profession relating to the buying, selling, or renting of real estate on commission in Etowah County if the licensee maintains its principal place of business in the corporate limits or police jurisdiction of that city or municipality.
(2) Effective January 1 following the ratification of this amendment and each year thereafter, in addition to the taxes, if any, imposed under subdivision (1) above, every corporation, firm, broker, agent, or other person or entity engaged in the business of buying, selling, managing, leasing, or renting of real estate on commission in Etowah County shall pay an annual business license tax at a rate to be set by the Legislature for the privilege of engaging in that business in every other city or municipality in Etowah County. The tax shall be collected by the License Commissioner of Etowah County and shall be distributed by the License Commissioner of Etowah County to each city or municipality within Etowah County on a pro rata basis based on population. The License Commissioner of Etowah County shall be entitled to an administrative fee for administering this tax at a rate to be set by the Legislature. The fee shall to be added to subtracted from the license tax.
(3) Effective January 1 following the ratification of this amendment and each year thereafter, except for the license taxes permitted or mandated under subdivisions (1) and (2) above, no other privilege license tax or any other fee or tax shall be imposed under Sections 11-51-90 and 11-51-91, Code of Alabama 1975, or any other law by any city or municipality within Etowah County on corporations, firms, brokers, agents, or other persons or entities engaged in the business of buying, selling, managing, leasing, or renting of real estate on commission in Etowah County.
(b) This amendment shall not become effective unless approved at a referendum by a majority of the qualified electors of Etowah County voting on the proposition. The referendum shall be held at the same time as the election for the ratification of this amendment, as provided for in Section 2 of this act, and no further election shall be required.
Section 2. An election upon the proposed amendment shall be held in accordance with Amendment 555 to the Constitution of Alabama of 1901, and the election laws of this state.
Section 3. The appropriate election official shall assign a ballot number for the proposed constitutional amendment on the election ballot and shall set forth the following description of the substance or subject matter of the proposed constitutional amendment:
"Relating to Etowah County, proposing an amendment to the Constitution of Alabama of 1901, to allow legislation authorizing cities and municipalities to collect license taxes on firms engaged in the real estate business and to preclude the imposition of any future tax on those engaged in the real estate business.
Proposed by Act _________"
This description shall be followed by the following language:
"Yes ( ) No ( )."