HB34 Alabama 2015 1st Special Session

Summary

Primary Sponsor

Elaine Beech

Democrat

Session

First Special Session 2015

Title

Taxation, business privilege, maximum due increased, financial institution excise tax return due date revised, Secs. 10A-2-16.22, 40-14A-22, 40-14A-25 am'd.

Summary

HB34 would raise the maximum Business Privilege Tax, switch to a net-worth-based rate, exempt very small Alabama net worth filers, and move financial-institution tax deadlines to April 15 while codifying prior corrections.

What This Bill Does

It increases the annual maximum Business Privilege Tax from $15,000 to $25,000 and updates the tax rate so it is based on Alabama taxable net worth, removing the .00025 rate. Taxpayers with Alabama taxable net worth under $10,000 would be exempt from filing. The bill also changes the Business Privilege Tax due date for financial institutions from March 15 to April 15 to align with their Excise Tax filings, and it codifies certain provisions from earlier acts as part of current law.

Who It Affects

• Businesses and other entities subject to the Alabama Business Privilege Tax, who would face a higher maximum tax and a net-worth-based rate, with small-net-worth filers exempt from filing.
• Financial institutions and financial-institution groups, whose Business Privilege Tax filing deadlines would shift to April 15 to align with their Excise Tax filings and who would follow corresponding filing dates.

Key Provisions

• Increase the annual maximum Business Privilege Tax from $15,000 to $25,000.
• Update the tax rate schedule to eliminate the .00025 rate and determine rates based on Alabama taxable net worth.
• Relieve taxpayers with less than $10,000 in Alabama taxable net worth from the Business Privilege Tax filing obligation.
• Amend the Business Privilege Tax due date for financial institutions from March 15 to April 15 and provide for corresponding tax return due dates for financial institutions.
• Codify Section 12 of Act 99-665, as amended by Act 2000-705, as part of Section 40-14A-22 and include other technical corrections.

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