SB241 Alabama 2020 Session

Summary

Primary Sponsor

Vivian Davis FiguresSenator

Democrat

Session

Regular Session 2020

Title

Taxation, Revenue Dept., sales tax, to discontinue the discount applicable to sales tax, Sec. 40-23-36 am'd.

Summary

SB241 would end the sales tax discount for license holders on taxes collected on or after September 1, 2020.

What This Bill Does

The bill amends Section 40-23-36 to prohibit any sales tax discount for taxes collected on or after September 1, 2020. Discounts for taxes collected prior to that date would remain under existing rules. As a result, license holders would no longer receive discounts on new tax collections, and state revenue from those taxes would not be reduced by discounts. The law would take effect immediately after the Governor signs it into law.

Who It Affects

• Licensed sales tax collectors (businesses): lose eligibility for the sales tax discount on taxes collected on or after September 1, 2020.
• Alabama Department of Revenue and the state government: would no longer administer or provide discounts for new sales tax collections, increasing net tax revenue from those collections.

Key Provisions

• Amends Section 40-23-36 to discontinue the sales tax discount for taxes collected on or after September 1, 2020.
• Preserves existing discount rules for taxes collected before September 1, 2020 (e.g., up to 5% of the first $100 and 2% of amounts over $100, subject to limits).
• Effective date: immediate upon passage and governor's approval, or otherwise becoming law.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Revenue Department