HB258 Alabama 2020 Session

Summary

Primary Sponsor

Danny CrawfordRepresentative

Republican

Session

Regular Session 2020

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

HB258 would let businesses with municipal gross-receipts licenses deduct excise taxes from gross receipts, reducing the license tax base.

What This Bill Does

It clarifies that gross receipts used for calculating a municipal license tax do not include taxes collected on behalf of governments, especially excise taxes. It allows a business paying a municipal gross-receipts license to subtract those excise taxes from its gross receipts when figuring the license tax owed. As a result, the license tax could be lower for those businesses. It maintains existing definitions and exclusions, but adds the specific excise tax deduction.

Who It Affects

• Businesses that pay a municipal gross-receipts license, who would have a smaller license tax base due to deducting excise taxes.
• Municipalities and the Alabama Department of Revenue that administer these licenses, who would apply the new deduction rules in calculating and collecting the tax.

Key Provisions

• Amends Section 11-51-90.1 to define gross receipts as excluding excise taxes collected on behalf of federal, state, and local governments.
• Allows a business paying a municipal gross-receipts license to deduct from gross receipts the excise taxes it collects for governments.
• Maintains other existing definitions and exclusions, with the new deduction framework applying within the article.
• Effective date: becomes law on the first day of the third month after its passage and governor's approval.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Municipalities