SB475 Alabama 2015 Session

Summary

Primary Sponsor

Trip Pittman

Republican

Session

Regular Session 2015

Title

Privilege or license tax on a contractors' gross receipts, certain exemptions eliminated, distrib. of proceeds further provided for, Sec. 40-23-50 am'd.

Description

Currently, the State of Alabama levies a tax on contractors’ gross receipts. Exemptions to this tax include gross receipts from contracts made by the contractor with a county, incorporated city, or town, unless the State of Alabama is a joint party, and the additional gross receipts received by the contractor under contractual escalation provisions allowing for an increase in the contract price for escalation in construction costs.

This bill will remove the exemption of gross receipts from contracts made by the contractor with a county, incorporated city, or town from the tax levied on contractors’ gross receipts. This bill will provide further for the distribution of the proceeds from the tax levied on contractors’ gross receipts.

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Subjects

Taxation