SB275 Alabama 2020 Session

Summary

Primary Sponsor

Gerald H. AllenSenator

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

SB275 would let municipalities exclude excise taxes from gross receipts when calculating business license taxes based on gross receipts.

What This Bill Does

If enacted, the gross receipts used to compute a municipal gross receipts-based business license tax would be reduced by any excise taxes imposed by federal, state, or local governments. This clarifies that excise taxes are not part of gross receipts for this purpose. Consequently, the tax base for these licenses would be lowered for affected businesses.

Who It Affects

• Businesses that pay a municipal business license tax based on gross receipts would benefit by potentially lowering their tax base due to deducting excise taxes.
• Municipalities and local tax authorities could see changes in revenue from licenses based on gross receipts, depending on how much excise tax is deducted.

Key Provisions

• Amends Section 11-51-90.1 to specify that gross receipts do not include any excise tax imposed by federal, state, and local governments.
• Allows a business paying a municipal gross receipts-based license to deduct from gross receipts any excise tax imposed by federal, state, and local governments.
• Effective date: becomes law on the first day of the third month following passage and Governor approval.

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

Subjects

Municipalities