SB189 Alabama 2022 Session

Summary

Primary Sponsor

Garlan Gudger Senator

Republican

Co-Sponsors

Gerald H. AllenWill BarfootWilliam “Bill” M. BeasleyTom ButlerDonnie ChesteenLinda Coleman-MadisonChris ElliottVivian Davis FiguresSam GivhanKirk HatcherJimmy HolleyAndrew JonesSteve LivingstonDel MarshJim McClendonTim MelsonRandy PriceGreg J. ReedDan RobertsMalika Sanders-FortierClay ScofieldDavid SessionsRodger SmithermanLarry StuttsJ.T. WaggonerApril WeaverTom WhatleyJack W. Williams

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.

Description

Under existing law, amounts received as loan forgiveness or payment under Section 1005 of the federal American Rescue Plan Act of 2021 for qualifying disadvantaged farmers and ranchers may be considered taxable.

This bill would provide that for tax years ending after the enactment of the federal American Rescue Plan Act of 2021, any amount of cancellation of indebtedness income resulting from a loan forgiven under Section 1005 of the American Rescue Plan Act shall be exempt from income taxes imposed by Chapter 18 of Title 40, Code of Alabama 1975, not considered in determining the deductibility of otherwise deductible expenses, and excluded from any and all calculations in determining a taxpayer’s federal income tax deduction pursuant to Chapter 18 of Title 40, Code of Alabama 1975.

Under existing law, the due date for a corporate income tax return and financial institution excise tax return is the same as the corresponding federal income tax return.

This bill would provide for a one-month extension of the due date of tax returns for Alabama financial institution excise taxpayers and corporate income taxpayers in the tax years beginning on or after January 1, 2021, without incurring a late filing penalty. The filing extension would not extend the due date of the tax liability by these taxpayers.

This bill would also authorize the Department of Revenue, at its discretion, to extend the due date of the tax returns for Alabama financial institution excise taxpayers and corporate income taxpayers by one month in tax years beginning on or after January 1, 2020, but not after January 1, 2021.

Under existing law, ad valorem tax is levied on tangible personal property owned by businesses in Alabama. Additionally, certain property and persons are exempt from ad valorem taxation.

This bill would provide an exemption of up to $40,000 of the market value of business tangible personal property from ad valorem tax levied by the state. The bill also provides that any county or municipality may adopt, by ordinance or resolution, the same exemption for local ad valorem taxes levied on business tangible personal property.

Under existing law, a one-time surety bond is required for certain sales tax licensees.

Under existing law, any sales tax licensee whose average monthly state sales tax liability was $2,500 or greater during the preceding calendar year is required to make estimated payments.

This bill would allow for a deposit of certified funds in lieu of the purchase of a surety bond. This bill would also increase the average monthly state sales tax liability threshold calculation to $5,000 or greater during the preceding calendar year for required estimated payments.

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Subjects

Taxation