HB702 Alabama 2012 Session

Summary

Primary Sponsor

Jay Love

Republican

Co-Sponsors

Victor GastonChad FincherJamie IsonJim Barton

Session

Regular Session 2012

Title

Taxation, privilege, business tax, provider exemption to dormant entities, Sec. 40-14A-44 added

Summary

The bill exempts dormant legal entities from the Alabama business privilege tax.

What This Bill Does

It adds a new section to exempt dormant entities from the privilege tax. A dormant entity is one that, for two consecutive years before the tax year, has not owned property, produced income, or conducted any business activity. The exemption applies even if the entity has not dissolved or withdrawn its state qualification. The provision takes effect immediately upon passage and governor approval, or when it becomes law.

Who It Affects

• Dormant legal entities in Alabama (as defined) will be exempt from the privilege tax during the period they are dormant.
• Active entities or those not meeting the dormancy criteria continue to be taxed as before.

Key Provisions

• Adds Section 40-14A-44 to exempt dormant entities from the privilege tax.
• Defines dormancy as two consecutive years prior to the taxable year with no owned property, no produced income, and no business activity.
• Dormant status applies even if the entity has not dissolved or withdrawn its qualification with the Secretary of State.
• Taxes levied by this chapter shall not apply to dormant entities.
• Effective immediately upon passage and governor's approval (or otherwise becoming law).

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation