SB288 Alabama 2021 Session

Summary

Primary Sponsor

Shay ShelnuttSenator

Republican

Session

Regular Session 2021

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

SB288 would let municipalities that base their business license tax on gross receipts exclude excise taxes from those gross receipts when calculating the tax.

What This Bill Does

The bill amends the definition of gross receipts to exclude any excise tax imposed by federal, state, or local governments. It also allows businesses paying a municipal gross receipts-based license to deduct such excise taxes from their gross receipts when determining the license tax due. The change clarifies that gross receipts must exclude taxes collected on behalf of governments and outlines related exclusions and limitations, including special rules for utilities and other categories.

Who It Affects

• Businesses that pay a municipal gross receipts-based business license tax: their license tax calculation could be reduced because excise taxes would be excluded from gross receipts.
• Municipalities and their license/tax officials: they would apply the new definition and rules, which could affect revenue calculations and administration of the license tax.

Key Provisions

• Gross receipts shall not include any excise tax imposed by federal, state, or local governments when calculating municipal business license tax.
• A business paying a municipal gross receipts-based license may deduct from gross receipts any excise taxes paid to government authorities when calculating the license tax.
• Gross receipts shall continue to exclude certain other items (taxes collected on behalf of governments, utility taxes, license taxes, etc.), with specific examples and limitations outlined in the statute, and only these deductions are allowed unless provided otherwise.
• For utilities or entities described in Section 11-51-129, gross receipts are limited to receipts from the retail furnishing of utility services taxed under certain state rules, and such gross receipts are not subject to further municipal business license taxation.

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