SB145 Alabama 2022 Session

Summary

Primary Sponsor

Shay ShelnuttSenator

Republican

Session

Regular Session 2022

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

SB145 would let municipalities with gross-receipts-based business licenses exclude excise taxes from the gross receipts used to calculate the license, effectively lowering local license fees.

What This Bill Does

The bill clarifies that gross receipts for municipal license taxes do not include excise taxes. It allows businesses paying a municipal gross receipts license to deduct those excise taxes from gross receipts when calculating the license tax. As a result, the tax base used to determine the license amount could be smaller, potentially reducing payments to municipalities. It also updates the definitions related to gross receipts and business licenses to reflect this change.

Who It Affects

• Businesses that pay municipal gross receipts-based license taxes (potentially lower license payments due to the deductions).
• Municipalities that collect those taxes (potential change in revenue and administration as the deduction is applied).

Key Provisions

• Amends Section 11-51-90.1 to define gross receipts as not including excise taxes imposed by federal, state, and local governments, and taxes collected on behalf of taxing jurisdictions or the federal government.
• Allows a business subject to a municipal gross receipts license tax to deduct from gross receipts the amount of excise taxes (federal, state, or local) imposed and remitted to governments when calculating the license tax.
• Gross receipts shall not include excise taxes and similar taxes collected on behalf of governments, with other specific exclusions and definitions maintained or clarified.
• Effective date: the act takes effect on the first day of the third month after passage and 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