Alabama House Bill HB77

Alabama 2023 Regular Session

• Introduced: 3/7/23
• Refer: 3/7/23
• Report Pass: 3/22/23
• Engrossed: 4/20/23
• Refer: 4/20/23
• Report Pass: 5/17/23
• Enrolled: 6/1/23
• Passed: 6/1/23

Caption

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.

Impact

The bill impacts state tax law by modifying Section 40-23-7 of the Alabama Code. By doing this, it provides clarity on how and when taxpayers must file their sales tax returns and make payments, especially for larger entities. Taxpayers with higher previous sales tax liabilities will be required to make more frequent estimated payments, while those with lesser liabilities may opt for less frequent filings. This adjustment is expected to streamline sales tax administration and ensure that state revenues are realized more promptly.

Summary

House Bill 77 aims to amend the Alabama Code regarding sales tax by increasing the amount of average monthly sales tax liability necessary for required estimated payments. It changes the thresholds for taxpayers based on their prior year's sales tax liabilities, thereby adjusting the reporting frequencies and the deadlines for such payments. The bill primarily focuses on clarifying and updating the obligations of taxpayers concerning their sales tax liabilities, particularly for those whose tax responsibility meets or exceeds certain financial thresholds.

Sentiment

Overall, the sentiment surrounding HB77 appears to be neutral to positive. Proponents view it as a necessary update to existing laws, offering clarity and making compliance easier for businesses. The bill reflects changes aimed at efficiently managing state resources and revenues. However, some concerns may arise over the increased financial burden on larger businesses due to the heightened payment schedule, which could lead to cash flow issues for some entities. Yet, the bill does seem to primarily benefit overall tax fairness and clarity.

Contention

Notable points of contention include the ramifications for small businesses and their ability to comply with increased reporting obligations. Critics might argue that the new revisions could disproportionately affect smaller entities that may struggle more with cash flow management. Although details from discussions were not prominently featured in the transcription snippets retrieved, the balance of responsibilities imposed by the bill remains a core topic of consideration among stakeholders evaluating the bill's potential impacts.