HB77 Alabama 2023 Session

Summary

Primary Sponsor

Danny GarrettRepresentative

Republican

Session

Regular Session 2023

Title

Relating to sales tax; to amend Section 40-23-7, as last amended by Section 5 of Act 2022-53 of the 2022 Regular Session, Code of Alabama 1975, to provide for an increase in the amount of the average monthly sales tax liability for required estimated payments.

Summary

HB77 raises the threshold for required monthly estimated state sales tax payments from $5,000 to $20,000 in average monthly liability, reducing how many licensees must make monthly estimates.

What This Bill Does

The bill changes who must make monthly sales tax estimated payments by increasing the average monthly liability threshold to $20,000; any taxpayer with $20,000 or more in average monthly liability must continue making monthly estimated payments, while those below this threshold are not required to. Qualifying taxpayers who are not required to make monthly estimates may elect to file quarterly, semi-annually, or annually, with election deadlines and reporting requirements set by the department. The measure takes effect October 1, 2023.

Who It Affects

• Sales tax licensees whose average monthly state sales tax liability is less than $20,000 in the preceding calendar year (they will no longer be required to make monthly estimated payments).
• Qualifying taxpayers who choose to file less frequently (quarterly, semi-annually, or annually) under the new rules, with the election due by February 20 each year.

Key Provisions

• Increases the threshold for required monthly estimated payments from $5,000 to $20,000 average monthly state sales tax liability.
• Taxpayers with $20,000 or more in average monthly liability must continue making monthly estimated payments; those below are not required to.
• Qualifying taxpayers may elect to file quarterly, semi-annually, or annually, with the election due in writing by February 20 of each year and reporting requirements prescribed by the department.
• If choosing quarterly, semi-annual, or annual filing, specific frequency rules apply based on prior year liability (e.g., under $2,400 allows quarterly; under $1,200 or limited 30-day periods allows semi-annual; under $600 or limited 30-day periods allows annual), with corresponding due dates for payments.
• The act becomes effective October 1, 2023.

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

Subjects

Sales tax; threshold for state sales tax liability requiring monthly estimated payments increased