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AL HB77

Bill

Status

Passed

6/1/2023

Primary Sponsor

Danny Garrett

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Origin

House of Representatives

Regular Session 2023

AI Summary

HB77 Summary

  • Increases the threshold for required estimated sales tax payments from $5,000 to $20,000 in average monthly state sales tax liability during the preceding calendar year.

  • Taxpayers meeting the $20,000 threshold must make estimated payments to the department by the 20th day of each month based on 66 2/3 percent of their actual or estimated tax liability.

  • Maintains existing provisions allowing taxpayers to elect quarterly, semi-annual, or annual filing if they meet lower liability thresholds ($2,400 for quarterly, $1,200 for semi-annual, $600 for annual).

  • Permits the department to extend filing deadlines for good cause, but not more than 30 days from the original due date.

  • Effective date is October 1, 2023, following passage and approval by the Governor.

Legislative Description

Relating to sales tax; to amend Section 40-23-7, as last amended by Section 5 of Act 2022-53 of the 2022 Regular Session, Code of Alabama 1975, to provide for an increase in the amount of the average monthly sales tax liability for required estimated payments.

Sales tax; threshold for state sales tax liability requiring monthly estimated payments increased

Last Action

Enacted

6/1/2023

Committee Referrals

Finance and Taxation Education4/20/2023
Ways and Means Education3/7/2023

Full Bill Text

No bill text available