HB466 Alabama 2023 Session

Summary

Primary Sponsor

Chris BlackshearRepresentative

Republican

Session

Regular Session 2023

Title

Relating to municipalities; to amend Section 11-51-90.1, Code of Alabama 1975, relating to the municipal business license tax; to specify that the definition of gross receipts does not include any excise tax imposed by the federal, state, and local governments.

Summary

HB466 would allow businesses with municipal gross receipts-based licenses to deduct excise taxes from gross receipts when calculating their license tax.

What This Bill Does

The bill amends Section 11-51-90.1 to ensure gross receipts used for municipal license taxes do not include excise taxes imposed by federal, state, or local governments. It allows any business paying a municipal gross receipts license to deduct those excise taxes from gross receipts. It also clarifies how gross receipts are defined and provides related exclusions, including how utilities are treated and other standard exclusions remain in place.

Who It Affects

• Businesses that pay a municipal gross receipts-based license tax, who would be able to subtract excise taxes from their gross receipts when computing the tax owed.
• Municipalities that collect municipal license taxes, which may see changes in revenue bases and would need to apply the new rule when assessing taxes.

Key Provisions

• Provision 1: Amends Section 11-51-90.1 to specify that gross receipts used for municipal license taxes shall not include excise taxes imposed by federal, state, or local governments.
• Provision 2: Allows any business paying a municipal gross receipts-based license tax to deduct from gross receipts any such excise taxes paid to government authorities when calculating the license tax.
• Provision 3: Maintains the broad definition of gross receipts but lists exclusions (including taxes collected on behalf of governments and remitted by the taxpayer) and clarifies other exclusions and rules related to gross receipts.
• Provision 4: For utilities or certain entities, gross receipts are limited to receipts from the retail furnishing of utility services within the municipality taxed under specified state law, and such receipts are not subject to further municipal license taxation.
• Provision 5: Effective date set as the first day of the third month after the bill is passed and approved.

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