SB169 Alabama 2023 Session

Summary

Primary Sponsor

Gerald H. AllenSenator

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

SB169 would allow businesses paying municipal gross-receipts licenses to deduct excise taxes from their gross receipts when calculating the license tax.

What This Bill Does

It amends the definition of gross receipts used for municipal license taxes to exclude excise taxes imposed by federal, state, and local governments. This means the license tax would be based on net receipts after removing those excise taxes, potentially lowering the tax owed for affected businesses. The bill also sets a special rule for utilities, limiting their gross receipts to receipts from retail utility services within the municipality. It becomes effective on the first day of the third month after the bill is enacted.

Who It Affects

• Businesses that pay municipal gross-receipts-based licenses, who would be able to deduct excise taxes from their gross receipts.
• Municipalities that levy license taxes, which may see changes to the tax base and need to adjust calculations.
• Utilities or entities described in Section 11-51-129, which have a separate provision limiting gross receipts to within-municipality utility service receipts.

Key Provisions

• Amends Section 11-51-90.1 to exclude excise taxes from gross receipts used to calculate municipal license taxes.
• Gross receipts shall not include taxes collected on behalf of taxing jurisdictions or the federal government, including excise taxes and certain license fees; other deductions remain limited to those provided in this act.
• For utilities or similar entities described in Section 11-51-129, gross receipts are limited to the gross receipts from retail furnishing of utility services within the municipality, with exceptions for existing contracts or agreements.
• The act becomes effective on the first day of the third month following its 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.