SB254 Alabama 2011 Session

Summary

Primary Sponsor

William “Bill” M. BeasleySenator

Democrat

Co-Sponsors

Tom WhatleyBryan TaylorGerald O. DialClay ScofieldPhillip W. WilliamsGreg J. ReedRoger Bedford, Jr.Rusty GloverPaul SanfordMark Slade Blackwell

Session

Regular Session 2011

Title

Sales tax, estimated payments, average monthly tax liability threshold increased, Sec. 40-23-7 am'd.

Summary

SB254 raises the threshold for required estimated monthly state sales tax payments from $1,000 to $2,500 per month.

What This Bill Does

If enacted, only taxpayers with an average monthly state sales tax liability of $2,500 or more in the preceding year would have to make estimated monthly payments. These payments are due by the 20th of each month, with the first payment calculated as 66 2/3 percent of the reported liability for the month (based on historical data), and subsequent payments calculated as the lesser of 66 2/3 percent of the same month in the prior year or the current month’s estimate; any overpayments or underpayments are applied to the next month. Taxpayers with very low average liability (less than $200 per month) may elect to file quarterly returns instead of monthly ones, with the election due by February 20 each year. The bill becomes law on the first day of the third month after passage.

Who It Affects

• Taxpayers who owe state sales tax and have an average monthly liability of $2,500 or more in the preceding year; they would be required to make estimated monthly payments by the 20th of each month.
• Taxpayers whose average monthly state sales tax liability is less than $200 per month; they may elect to file quarterly returns instead of monthly.

Key Provisions

• Raises the threshold for requiring estimated state sales tax payments from $1,000 to $2,500 or more in the preceding year.
• For those above the threshold, establishes a monthly estimated payment schedule due by the 20th, with the first payment at 66 2/3 percent of the month’s actual liability (using October 1983 data) and later payments at the lesser of 66 2/3 percent of the prior year month liability or the current month’s estimate; overpayments/underpayments carry to the next month.
• Maintains a quarterly filing option for those whose average monthly liability averages less than $200, with election due by February 20 each year.
• Effective date: the first day of the third month after the bill becomes law.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation