HB383 Alabama 2019 Session

Updated Feb 26, 2026

Low Interest

Summary

Primary Sponsor: Steve McMillan
Republican
Session: Regular Session 2019
Title: Taxation, sales and use taxes and lodging taxes, qualifying seasonal taxpayers may have different filing periods, Secs. 40-23-7, 40-23-68, 40-26-3 am'd.
Summary: HB383 lets smaller taxpayers file sales, use, and lodging taxes less often (quarterly, semi-annually, or annually) based on prior-year liability and adds license-enforcement provisions for tax licenses.
What This Bill Does
The bill changes how three taxes are filed—sales, use, and lodging—by allowing qualifying taxpayers to choose less frequent filing schedules. It creates tiered thresholds based on the prior year's tax liability to determine if a taxpayer can file quarterly, semi-annually, or annually. It also gives the Department of Revenue authority to suspend or revoke licenses for issues like fraud, changes in ownership, noncompliance, or failure to maintain required bonds, and lets the department set related rules. It becomes law a few months after the governor signs it.

Who It Affects
Taxpayers who owe Alabama sales tax, use tax, or lodging tax and whose prior-year liability qualifies them for reduced filing frequencies (quarterly, semi-annual, or annual).
Businesses and individuals who hold licenses under sections 40-12-221, 40-23-6, or 40-23-66 and may be subject to license suspension, revocation, or renewal denial under the new enforcement provisions.

Key Provisions
Amends 40-23-7, 40-23-68, and 40-26-3 to allow qualifying taxpayers to file quarterly, semi-annually, or annually based on prior-year totals: quarterly if liability is under $2,400; semi-annually if under $1,200 or if the taxpayer had no more than two 30-day periods of activity; or annually if under $600 or no more than one 30-day period.
Requires written elections by February 20 each year to choose the filing frequency, with specific timing for when returns and payments are due under the chosen schedule; also provides for a potential January 20 start date for returns unless prior-year liability exceeds $10 for sales tax.
Extends the filing-time window for good cause up to 30 days beyond the due date.
Adds §40-23-6.1 giving the commissioner the power to suspend, revoke, or deny licenses for fraud, ownership changes, noncompliance, or failure to maintain required surety bonds; allows the Department of Revenue to adopt rules to administer this section.
Effective date: the act becomes law on the first day of the third month after the governor approves.

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