SB6 Alabama 2014 Session

Summary

Primary Sponsor

Mark Slade Blackwell

Republican

Session

Regular Session 2014

Title

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

Summary

SB6 would exempt certain dormant entities from Alabama's business privilege tax by adding a new definition of dormancy to stop taxation when a company shows no activity.

What This Bill Does

It adds Section 40-14A-44 to exempt dormant legal entities from the business privilege tax. An entity is dormant if, for two consecutive years before the taxable year, it has not owned property, produced income, or conducted any business activity. The exemption applies even if the entity has not dissolved or withdrawn its registration with the Secretary of State. The act becomes effective immediately after governor approval.

Who It Affects

• Dormant legal entities in Alabama that meet the two-year inactivity criteria would not owe the business privilege tax.
• Entities that become dormant (failure to own property, earn income, or conduct business for two consecutive years) would receive tax exemption even if they remain legally registered or not dissolved.

Key Provisions

• Adds Section 40-14A-44 to exempt dormant entities from the business privilege tax.
• Defines dormancy as two consecutive years with no property ownership, income, or any business activity prior to the taxable year.
• Exemption applies even if the entity has not dissolved or withdrawn its Secretary of State qualification.
• Effective date: immediately after passage and 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