AL HB702

Adds Section 40-14A-44 to the Alabama Code to exempt dormant entities from the state's business privilege tax.

Defines a dormant entity as one that has not owned property, produced income, or carried out any business activity or function for two consecutive years prior to the taxable year.

Exemption applies even if the dormant entity fails to formally dissolve or withdraw its qualification to do business with the Secretary of State.

The act becomes effective immediately upon passage and approval by the Governor or upon otherwise becoming law.