HB295 Alabama 2013 Session

Summary

Primary Sponsor

Alan Boothe

Republican

Co-Sponsor

Lesley Vance

Session

Regular Session 2013

Title

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

Summary

HB295 would raise the required average monthly state sales tax liability threshold for making estimated payments from $1,000 to $2,500.

What This Bill Does

It changes the law so only taxpayers with an average monthly state sales tax liability of $2,500 or more in the prior year must make estimated monthly payments. Those taxpayers would submit monthly estimates by the 20th, with the first estimate equal to 66 2/3 percent of that month’s actual tax and later estimates calculated as the lesser of 66 2/3 percent of the same month’s prior-year liability or the current month’s estimate. Taxpayers with lower liability (under $2,500) could file quarterly if their average is under $200 per month, by election, and the bill keeps existing rules for credits/deficits and for certain exemptions.

Who It Affects

• Businesses and other taxpayers whose average monthly state sales tax liability is $2,500 or more; they would be required to make estimated monthly payments.
• Taxpayers with average monthly liability under $2,500; they may file quarterly (if under $200 per month) and are otherwise subject to the standard reporting rules.

Key Provisions

• Raises the threshold for estimated payments from $1,000 to $2,500 average monthly liability.
• Requires eligible taxpayers to pay estimated monthly taxes by the 20th day of the month; first payment is 66 2/3 percent of the month’s actual tax, later payments are the lesser of 66 2/3 percent of last year’s same month or 66 2/3 percent of the current month’s estimated liability.
• Credits or deficits from overpayments or underpayments apply to adjust the final liability.
• Not apply to Sections 11-51-180, 11-51-200, 40-12-4, nor to municipal or county taxes levied by local acts.
• Provides a quarterly filing option for total average monthly liability under $200, with an election due by February 20 each year.
• The Department may extend filing time for good cause, up to 30 days.
• Effective date: September 1, 2012.

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