SB46 Alabama 2014 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Bryan Taylor
Republican
Session: Regular Session 2014
Title: Sales tax, estimated payments, average monthly tax liability threshold increased, Sec. 40-23-7 am'd.
Summary: SB46 raises the threshold for requiring estimated state sales tax payments from $1,000 to $2,500 average monthly liability.
What This Bill Does
If passed, the bill changes who must make estimated monthly state sales tax payments. Taxpayers with an average monthly liability of $2,500 or more would be required to make estimated payments, while those below that threshold would not be required to make such payments (though other filing requirements still apply). For those meeting the new threshold, estimated payments are due by the 20th of the month, with the first payment at 66 2/3 percent of that month’s actual liability (using October 1983 as a base) and subsequent payments based on the lesser of 66 2/3 percent of the prior year’s same month or the current month’s estimate; any over- or underpayments would affect the final liability. The option to file quarterly returns remains available for taxpayers with very low liability (less than $200 per month). The changes take effect October 1, 2015.

Who It Affects
Taxpayers with an average monthly state sales tax liability of $2,500 or more in the preceding calendar year would be required to make estimated monthly payments.
Taxpayers whose average monthly liability is less than $2,500 (including those with very small liability who may file quarterly) would not be required to make estimated monthly payments.

Key Provisions
Increases the average monthly state sales tax liability threshold for required estimated payments from $1,000 to $2,500 or greater.
For those meeting the new threshold, requires estimated payments by the 20th day of the month; first payment is 66 2/3 percent of the month’s actual liability (using October 1983 as a base); subsequent payments are the lesser of 66 2/3 percent of the prior year’s same month or 66 2/3 percent of the current month’s estimate; overpayments/underpayments adjust the final liability.
Keeps the quarterly filing option for those whose average monthly liability is less than $200, with related election timing and rules.
Amends Section 40-23-7 and takes effect October 1, 2015.

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