HB581 Alabama 2015 Session

Summary

Primary Sponsor

Elaine Beech

Democrat

Session

Regular 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

HB581 would raise the Business Privilege Tax maximum, switch to a net-worth–based rate, exempt very small net worth filers, and align financial-institution tax due dates with related taxes.

What This Bill Does

It increases the annual maximum Business Privilege Tax from $15,000 to $22,000 and updates the rate schedule to base rates on Alabama taxable net worth, removing the .00025 rate and exempting filers with less than $10,000 in Alabama net worth from filing. It also changes the due date for financial-institution Business Privilege Tax returns from March 15 to April 15 to align with the related Excise Tax. The bill codifies certain provisions from earlier acts and makes related technical corrections.

Who It Affects

• Businesses subject to the Alabama Business Privilege Tax, with the tax now calculated by net worth and with a higher maximum; those with Alabama net worth under $10,000 would be exempt from filing.
• Financial institutions and financial institution groups, whose tax due dates would move to April 15 and whose min/max tax rules and group filing options could be affected.

Key Provisions

• Increase the annual maximum Business Privilege Tax from $15,000 to $22,000; eliminate the .00025 tax rate; determine the tax rate by Alabama taxable net worth; and exempt taxpayers with less than $10,000 in Alabama taxable net worth from filing.
• Move the Business Privilege Tax due date for financial institutions from March 15 to April 15 to align with the financial institution Excise Tax; codify Section 12 of Act 99-665 as amended by Act 2000-705 into 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