HB82 Alabama 2022 Session

Summary

Primary Sponsor

Danny GarrettRepresentative

Republican

Session

Regular Session 2022

Title

Small Business Relief and Revitalization Act of 2022, cancellation of indebtedness income exempt from income tax, financial institution excise tax and corporate income tax due date extension, certain business tangible personal property ad valorem tax exemption, deposit of certified funds with Revenue in lieu of one-time surety bond for licensure, average monthly sales tax liability for estimated payments increased, Secs. 40-16-3.1, 40-18-39.1 added; Secs. 40-9-1, 40-23-6, 40-23-6.1, 40-23-7 am'd.

Summary

HB82 provides targeted tax relief for Alabama small businesses, including debt-forgiveness income exemptions, property tax relief for business personal property, extended filing deadlines, and revised sales tax licensing and payment requirements.

What This Bill Does

If enacted, it exempts certain ARPA Section 1005 loan forgiveness from Alabama income tax; it extends the filing deadline for financial institution excise and corporate income tax returns by one month after the federal due date without delaying payment. It creates a new up-to-$40,000 ad valorem exemption for business tangible personal property (subject to county/municipal adoption). It allows sales tax licensees to post a $25,000 one-time bond or deposit certified funds, with waivers for related parties, and requires bond/deposit for non-compliance with sales tax collection. It changes how and when taxpayers must make estimated sales tax payments and allows different filing frequencies for qualifying taxpayers.

Who It Affects

• Business owners and property holders in Alabama, who would benefit from the ARPA debt-forgiveness income exemption and the new up-to-$40,000 tangible personal property ad valorem tax exemption (with local adoption).
• Taxpayers subject to Alabama sales, corporate income, and financial institution taxes (including licensees and the Alabama Department of Revenue), who would see extended filing deadlines, revised bond/deposit rules for licenses, updated estimated payment requirements, and enforcement changes.

Key Provisions

• Exempts cancellation of indebtedness income from ARPA Section 1005 loan forgiveness from Alabama income tax for tax years ending after ARPA 2021 enactment.
• Financial institution excise tax and corporate income tax returns may be filed up to one month after the federal due date (including extensions); payment deadlines remain unchanged.
• Adds an exemption from state ad valorem tax for up to $40,000 of market value of business tangible personal property; counties or municipalities may adopt the exemption; effective October 1, 2023.
• Revises sales tax license requirements: initial license or renewal may be tied to a one-time $25,000 surety bond or a deposit of certified funds; waivers available for certain related parties or controlled groups; non-compliance triggers bond/deposit requirements and license cancellation if not addressed.
• After two years of continuous compliance, the sales tax bond/deposit requirement can be waived for licensees who meet ongoing compliance.
• Department of Revenue enforcement provisions authorize suspension or denial of licenses for certain conditions and non-compliance; rules may be adopted to administer the act.
• Sales tax estimated payments: higher average monthly liability thresholds trigger estimated payments; taxpayers may elect quarterly, semi-annual, or annual filing if eligible, with specified due dates and formulas for payments.
• Various sections become effective on different dates: the property tax exemption (Section 4) takes effect October 1, 2023; other sections take effect upon governor’s approval or as otherwise specified; the act allows the Department of Revenue to adopt implementing rules.

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

Subjects

Taxation