Pelham Leaders Oppose Senate Bill 304, Citing $750,000 Budget Loss

City officials say the proposed legislation could force cuts to essential services like police, fire, and schools.

Mar. 31, 2026 at 2:51am

Got story updates? Submit your updates here. ›

A serene, photorealistic painting of a municipal building in warm, golden light, conveying a sense of civic duty and community responsibility.The financial challenges facing Pelham's city government raise concerns about the potential impact on essential community services.Pelham Today

The city of Pelham, Alabama has passed a resolution formally opposing Senate Bill 304, which would limit how municipalities collect business license fees from contractors who perform work within a city but do not maintain a physical office there. Pelham leaders estimate the legislation could cost the city between $500,000 and $750,000 in lost revenue, directly impacting essential services like police, fire, infrastructure, and schools.

Why it matters

Pelham's opposition highlights the broader concerns of municipalities across Alabama about the potential financial impact of SB 304. City leaders argue the bill has been 'fast-tracked' through the legislature with limited input from local governments, and they are calling for a pause to allow for more review and revisions to prevent shifting financial burdens onto cities and residents.

The details

Senate Bill 304 would limit how municipalities collect business license fees from contractors who perform work within a city but do not maintain a physical office there. The bill applies to a wide range of construction and trade professionals, including general contractors, electricians, plumbers, home builders, subcontractors, and concrete providers. Supporters say the bill is intended to prevent double taxation, but Pelham Mayor Rick Wash called that explanation 'misleading', arguing it is still a single tax but a flat fee for entities working outside their home city.

  • The Pelham City Council unanimously passed a resolution opposing SB 304 on March 30, 2026.
  • SB 304 has already passed the Alabama Senate and would take effect in October if approved by the House of Representatives.

The players

Pelham City Council

The city government of Pelham, Alabama that unanimously passed a resolution opposing Senate Bill 304.

Rick Wash

The mayor of Pelham, Alabama who has criticized SB 304 as misleading and fast-tracked through the legislature.

Alabama Legislature

The state legislature that has rapidly advanced Senate Bill 304 with limited input from municipalities.

Alabama League of Municipalities

The organization representing local governments in Alabama that has voiced opposition to SB 304.

Got photos? Submit your photos here. ›

What they’re saying

“Well, exactly. And really what it's been is a misrepresentation of the facts. They have sold this on a double taxation when that's really not the case at all. It's still just single taxation, but it's a flat fee for these entities that work outside of the cities that they're home-based in is the way it's set up now. And so they're selling this as being something that it's really not to try to get it through. And that's why this is fast-tracked through is really the misinformation that has been portrayed around this entire bill.”

— Rick Wash, Mayor of Pelham

“You know, it's really been alarming, you know, to push this bill through so quick and for us to have all these concerns. And municipalities all over the state should have these same concerns. So it's been really eye-opening and concerning to the city of Pelham for this to happen the way it has.”

— Rick Wash, Mayor of Pelham

What’s next

The Pelham City Council plans to continue working with state lawmakers as Senate Bill 304 progresses through the Alabama Legislature. The bill has already passed the Senate and would take effect in October if approved by the House of Representatives.

The takeaway

Pelham's strong opposition to Senate Bill 304 highlights the broader concerns of municipalities across Alabama about the potential financial impact of the proposed legislation. City leaders are calling for a pause in the legislative process to allow for more review and revisions to prevent shifting significant budget burdens onto local governments and their residents.