Alabama Constitution Section 221 Payment of state license tax etc not to excuse payment of other privilege and license taxes
Alabama Constitution – Section 221:
Title:
Payment of state license tax, etc., not to excuse payment of other privilege and license taxes
Full Text of Section 221:
"The payment of a license tax to the state shall not operate as a discharge from the payment of any license tax which may be imposed by any county, city, town, or other municipal corporation. Nor shall the payment of a license tax to any county operate as a discharge from the payment of a license tax which may be imposed by the state, or by any city, town, or other municipal corporation."
Explanation:
Section 221 makes it clear that:
Paying a state license tax does not exempt a person or business from having to pay local license taxes (such as those levied by counties or cities).
Similarly, paying a county license tax does not exempt the payer from state or municipal license taxes.
Purpose:
This section is meant to preserve the taxing authority of multiple levels of government in Alabama — state, county, and municipal — so that:
Each level can independently impose and collect taxes.
One payment does not eliminate the responsibility to pay others.
Example:
If you own a business in Alabama:
You might have to pay a state business license tax,
A county business license tax, and
A city business license tax — all separately.
Paying one does not excuse you from the others.
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