HB462 Alabama 2016 Session

Summary

Primary Sponsor

Jimmy Martin

Republican

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initial return requirement deleted, due dates revised, Secs. 10A-2-16.22, 20-14A-22, 40-14A-25 am'd., Sec. 40-14A-29 repealed

Summary

HB462 would raise the maximum Business Privilege Tax, eliminate the initial return, exempt small-net-worth entities, update public information filing rules, and align due dates with Federal and financial institution tax returns.

What This Bill Does

Increases the annual maximum Business Privilege Tax from 15,000 to 24,500. Relieves taxpayers with Alabama taxable net worth under $10,000 from the Business Privilege Tax filing obligation. Eliminates the initial Business Privilege Tax return and updates public information filing rules, including allowing public-record filings with Revenue to substitute for the annual report with a $10 fee. Aligns the due dates so the BPT return is due with the Federal Income Tax return and, for financial institutions, aligns with their corresponding tax returns; repeals the old initial-return requirement and includes related codifications and corrections, with effective dates for returns due after December 31, 2016 (and broader effect in 2017).

Who It Affects

• Businesses subject to the Alabama Business Privilege Tax: they would face a higher tax cap (up to 24,500) and must follow new filing due dates that align with federal returns; some may owe more, while others may no longer owe due to exemptions.
• Small-net-worth entities with Alabama taxable net worth under $10,000: they would be exempt from filing and paying the Business Privilege Tax.

Key Provisions

• Maximum BPT increased from 15,000 to 24,500.
• Exemption for taxpayers with Alabama taxable net worth under $10,000 from filing and paying the tax.
• Elimination of the initial Business Privilege Tax return.
• Public information filing revised: public-record information filed with the Department of Revenue can substitute for the annual report with a $10 fee.
• Due dates aligned: BPT return due date set to match Federal Income Tax return; financial institutions' BPT due dates aligned with their corresponding tax returns.
• Repeal of Section 40-14A-29 in its entirety.
• Codification and technical corrections: Section 12 of Act 99-665, as amended by Act 2000-705, codified into Section 40-14A-22; other corrections included.
• Effective dates: changes apply to returns due after December 31, 2016, with related provisions effective January 1, 2017.

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