HB295 Summary

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

• Taxpayers with average monthly state sales tax liability of $2,500 or greater must make estimated payments to the Department of Revenue by the 20th day of the month in which the liability occurs.

• First estimated payment shall be 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 that month's final tax liability, which must be reported and paid by the 20th day of the following month.

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