HB276 Alabama 2013 Session

Summary

Primary Sponsor

Jamie Ison

Republican

Co-Sponsors

Randy DavisJim CarnsVictor GastonBill PooleOliver RobinsonDavid SessionsCharles O. NewtonNapoleon BracyJames E. BuskeyEd HenryKen JohnsonRod ScottJim McClendonMary MooreLynn GreerCraig FordMac ButtramMicky HammonHarry ShiverDemetrius C. NewtonTerri CollinsMarcel BlackJack WilliamsJohn W. Rogers

Session

Regular Session 2013

Title

Entities, dormant, exempt from business privilege tax, Sec. 40-14A-44 added

Summary

HB276 would exempt dormant entities from Alabama's business privilege tax, set criteria to identify them, and offer an amnesty program for certain delinquent taxpayers.

What This Bill Does

Adds a new section that exempts dormant entities from the business privilege tax. Dormant status means two consecutive years with no property, income, or business activity, and a non-operating designation can be recorded by state agencies. It also creates an amnesty program for taxpayers who have not filed or paid previously, waiving penalties and reducing the look-back period to two years for those who come forward in 2013, with possible liability reduction to $150 if dissolution is documented; the amnesty runs from October 1 to December 31, 2013, and the act becomes effective immediately after governor approval.

Who It Affects

• Dormant legal entities in Alabama (no property, income, or business activity for two years) are exempt from the business privilege tax.
• Taxpayers who owe delinquent taxes or have not filed required returns may participate in the 2013 amnesty program, with penalties waived, a shortened look-back period, and potential dissolution-based liability reduction.

Key Provisions

• Creates Section 40-14A-44 to exempt dormant entities from the business privilege tax.
• Defines dormant as two consecutive years with no ownership of property, income, or business activity, and provides a process for non-operating designation and Secretary of State update.
• Establishes an amnesty program for delinquent taxpayers: waives penalties, reduces look-back to two years, and may reduce liability to $150 if dissolution can be documented; period from October 1, 2013 to December 31, 2013.
• Effective date: immediately after passage and governor's approval.

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