2021 NOTICE Act Eliminates Certain Police Jurisdiction License, Taxes and Fees Effective June 2023

In a significant change to municipal revenue structures, the local licenses, taxes, and fees levied in the police jurisdictions of numerous Alabama municipalities will cease to be valid as of June 1, 2023, due to the implementation of Act 2021-297, otherwise known as the NOTICE Act.

The Act, which affects all businesses operating within the police jurisdictions of specified municipalities, includes towns and cities ranging from Alexander City and Brighton to Tuskegee and York.

Act 2021-297 stipulates that local licenses, taxes, and fees within these police jurisdictions should no longer be collected after the stated effective date. However, it's crucial to note that this prohibition does not extend to municipal boundaries or impact state or county licensing, taxes, and fees.

Consequently, local taxes within a municipality’s corporate limits, along with all state and county taxes, must still be collected and remitted as before.

Businesses in the affected areas must take note of these changes and adjust their financial processes accordingly to ensure they remain compliant with the new legal requirements.

This modification underscores the changing landscape of local government revenue sources and their impact on business operations, emphasizing the need for businesses to stay abreast of legislative changes.