SB307 Alabama 2019 Session

Summary

Primary Sponsor

Gerald H. AllenSenator

Republican

Session

Regular Session 2019

Title

Municipalities, business license tax on gross receipts, gross receipts not to include any other taxes on gasoline or motor fuels, Sec. 11-51-90.1 am'd.

Summary

This bill lets municipalities exclude certain excise taxes from gross receipts when calculating a business license tax based on gross receipts.

What This Bill Does

It amends the gross receipts definition to exclude excise taxes imposed by federal, state, and local governments that are collected by the business on behalf of the government. As a result, businesses paying a municipal gross receipts-based license tax would have a lower tax base and potentially pay less tax. There is a special rule for utilities limiting gross receipts to receipts from retail utility services taxed under a specific provision, and those utility receipts would not be taxed again by the municipality. The act becomes effective on the first day of the third month after the Governor approves it.

Who It Affects

• Businesses that pay a municipal business license tax based on gross receipts (they would deduct excise taxes and similar government-imposed taxes from their gross receipts when calculating the license tax).
• Municipalities and other taxing jurisdictions (they must apply the revised gross receipts definition in calculating taxes and may adjust tax bases accordingly; alternative calculation bases may still be used for certain taxpayers under existing provisions).

Key Provisions

• Gross receipts used to compute municipal gross receipts-based license taxes shall not include excise taxes imposed by federal, state, or local governments that are collected by the business on behalf of the government.
• Gross receipts shall not include taxes collected by the business on behalf of taxing authorities, such as utility gross receipts taxes, license taxes, or any excise tax, and no other deductions or exclusions from gross receipts are allowed beyond those provided in this article.
• For utilities described in Section 11-51-129, gross receipts are limited to the gross receipts from retail furnishing of utility services within the municipality that are taxed under Article 3 of Chapter 21 of Title 40, and those receipts shall not be subject to further municipal gross receipts taxation.
• The act becomes effective on the first day of the third month following passage and governor approval; municipalities may still use different bases for calculating the tax for certain categories of taxpayers as permitted by Section 11-51-90.2.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Municipalities