HB462 Alabama 2016 Session

Sponsors

Session

Regular Session 2016

Title

Business privilege tax, maximum amount increased, exemption provided, initial return requirement deleted, due dates revised, Secs. 10A-2-16.22, 20-14A-22, 40-14A-25 am'd., Sec. 40-14A-29 repealed

Description

<p class="bill_description"> Under current law, all entities doing business or registered to do business in Alabama, have an annual filing obligation for Business Privilege Tax. The Business Privilege Tax is calculated based on an entity’s net worth, apportioned to Alabama. There is a minimum of $100 Business Privilege Tax imposed annually on all entities subject to this tax. Currently, taxpayers have an annual maximum Business Privilege Tax due of $15,000</p><p class="bill_description"> In addition, under current law, the Business Privilege Tax due date for Financial Institutions is March 15. The Alabama Excise Tax return filed by financial institutions is due April 15. Taxpayers often need to extend the filing date of the Business Privilege Tax in order to have complete information not available until the Financial Institution Excise Tax return is completed. In addition, this bill ensures that all other entity types have corresponding due dates for both the Business Privilege Tax and the Alabama Income Tax return</p><p class="bill_description"> This bill will increase the annual maximum amount of Business Privilege Tax due from $15,000 to $24,500. Taxpayers that have less than $10,000 in Alabama taxable net worth will be relieved from their Business Privilege Tax filing obligation. In addition, the initial Business Privilege Tax return is eliminated. This bill updates the public information record filing requirements</p><p class="bill_description"> This bill amends the Business Privilege Tax due date for taxpayer’s subject to the Financial Institution Excise Tax from March 15, to provide for corresponding tax return due dates for financial institutions</p><p class="bill_description"> In addition, this bill modifies due dates for all entities to ensure that the Business Privilege Tax return is due at the same time as the Federal Income Tax return</p><p class="bill_description"> In addition, Section 12 of Act 99-665, as amended by Act 2000-705, is codified by this bill as part of Section 40-14A-22. Other technical corrections from these acts are also codified by this bill</p><p class="bill_description"> This bill repeals Section 40-14A-29 in its entirety to remove the requirement for an initial Business Privilege Tax return</p><p class="bill_entitled_an_act"> This bill will increase the annual maximum amount of Business Privilege Tax due from $15,000 to $24,500. Taxpayers that have less than $10,000 in Alabama taxable net worth will be relieved from their Business Privilege Tax filing obligation. In addition, the initial Business Privilege Tax return is eliminated. This bill updates the public information record filing requirements. This bill also amends the Business Privilege Tax due date for taxpayer’s subject to the Financial Institution Excise Tax from March 15, to provide for corresponding tax return due dates for financial institutions. Modifies due dates for all entities to ensure that the Business Privilege Tax return is due at the same time as the Federal Income Tax return. In addition, Section 12 of Act 99-665, as amended by Act 2000-705, is codified by this bill as part of Section 40-14A-22. This bill repeals Section 40-14A-29 in its entirety to remove the requirement for an initial Business Privilege Tax return. </p>

Subjects

Taxation