HB21 Alabama 2015 2nd Special Session

Summary

Primary Sponsor

Mike Hill

Republican

Session

Second 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

HB21 would remove the annual Business Privilege Tax filing for very small Alabama businesses, raise the tax for others, and change how financial institutions compute and file their taxes, including a later filing due date.

What This Bill Does

1) Eliminates the annual Business Privilege Tax filing obligation for business entities with Alabama taxable net worth under $10,000. 2) Increases the maximum Business Privilege Tax from $15,000 to $30,000 and raises the minimum tax from $100 to $125, along with higher tax rates. 3) Requires financial institutions with in-state deposits to calculate their tax based on those deposits, with a tiered minimum tax for financial institution groups. 4) Changes the financial institution tax return due date from March 15 to April 15 to align with related filings. 5) Codifies certain corrections from older acts into Section 40-14A-22 and makes related technical updates, effective for returns due after December 31, 2015.

Who It Affects

• Small business entities with Alabama taxable net worth under $10,000 would no longer owe or file the Business Privilege Tax.
• Most other businesses subject to the Business Privilege Tax would face higher taxes (increased maximum and minimum taxes and updated rates) and would continue to file accordingly.
• Financial institutions operating in Alabama would compute their tax based on in-state deposits, face a new deposit-based minimum tax schedule, may file for a consolidated group return, and have the new April 15 filing due date.

Key Provisions

• Eliminate the annual Business Privilege Tax filing obligation for business entities with Alabama taxable net worth under $10,000.
• Increase the maximum Business Privilege Tax from $15,000 to $30,000 and raise the minimum tax from $100 to $125; increase overall tax rates.
• Require financial institutions with in-state deposits to calculate their tax based on those deposits; implement a tiered minimum tax for financial institution groups tied to deposit levels.
• Move the Business Privilege Tax return due date for financial institutions from March 15 to April 15 (to align with the FI Excise Tax due date).
• Codify Section 12 of Act 99-665, as amended by Act 2000-705, into Section 40-14A-22 and apply other technical corrections from these acts.

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