SB230 Alabama 2013 Session

Summary

Primary Sponsor

Mark Slade Blackwell

Republican

Co-Sponsors

Gerald O. DialCam WardJerry L. Fielding

Session

Regular Session 2013

Title

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

Summary

SB230 would exempt certain dormant entities from Alabama's business privilege tax.

What This Bill Does

It creates a tax exemption for dormant legal entities. A entity is considered dormant if, during the two years before a taxable year, it did not own property, generate income, or conduct any business activity. The exemption applies even if the entity does not dissolve or withdraw its state registration, and the law takes effect immediately after the Governor approves it.

Who It Affects

• Dormant legal entities that meet the two-year inactivity rule would be exempt from the business privilege tax.
• The Alabama Department of Revenue would no longer collect the business privilege tax from these eligible dormant entities, affecting tax collection.

Key Provisions

• Adds Section 40-14A-44 to exempt dormant legal entities from the Alabama business privilege tax.
• Defines dormancy as two consecutive years prior to the taxable year with no ownership of property, no income, and no business activity, and states the exemption applies even if the entity has not dissolved or withdrawn its registration; effective immediately after governor's approval.

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