HB540 Summary

• Amends Section 40-23-7 of the Code of Alabama 1975 to increase the threshold for required estimated monthly sales tax payments from $1,000 to $2,500 average monthly tax liability.

• Taxpayers whose average monthly state sales tax liability exceeds $2,500 or greater during the preceding calendar year must make estimated payments to the Department of Revenue by the 20th day of each month.

• First estimated payment equals 66 2/3 percent of the taxpayer's actual tax liability for the same calendar month of the preceding year, or 66 2/3 percent of current month's estimated liability, whichever is less.

• Any outstanding credit or deficit from overpayment or underpayment is applied to increase or reduce that month's final tax liability, due by the 20th day of the following month.

• Effective September 1, 2012, following passage and approval by the Governor.