SB 46 Summary

• Amends Section 40-23-7 of the Code of Alabama 1975 regarding state sales tax collection requirements.

• Increases the average monthly tax liability threshold requiring estimated state sales tax payments from $1,000 to $2,500 or greater.

• Taxpayers meeting the $2,500 threshold must make estimated payments by the 20th day of the month when liability occurs, calculated as 66 2/3 percent of the prior year's same-month liability or current month's estimated liability.

• Any credits or deficits from overpayment or underpayment are applied to adjust that month's final tax liability, due by the 20th day of the following month.

• Effective October 1, 2015, following passage and Governor approval.