AL
Alabama Senate Bill SB169

Alabama 2023 Regular Session

Alabama Senate Bill SB169 Compare Versions

Only one version of the bill is available at this time.
OldNewDifferences
11 SB169INTRODUCED
22 Page 0
33 L6LJYA-1
44 By Senator Allen
55 RFD: County and Municipal Government
66 First Read: 05-Apr-23
77 1
88 2
99 3
1010 4
1111 5 L6LJYA-1 03/06/2023 FC (L) ma 2023-614
1212 Page 1
1313 SYNOPSIS:
1414 Under existing law, a municipality may require a
1515 business to obtain a local business license that is
1616 based on gross receipts.
1717 This bill would allow any business paying a
1818 municipal business license based on gross receipts to
1919 deduct from gross receipts any excise tax imposed by
2020 the federal, state, and local governments.
2121 A BILL
2222 TO BE ENACTED
2323 AN ACT
2424 Relating to municipalities; to amend Section
2525 11-51-90.1, Code of Alabama 1975, relating to the municipal
2626 business license tax; to specify that the definition of gross
2727 receipts does not include any excise tax imposed by the
2828 federal, state, and local governments.
2929 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
3030 Section 1. Section 11-51-90.1, Code of Alabama 1975, is
3131 amended to read as follows:
3232 "ยง11-51-90.1
3333 As used in this article, the following terms shall have
3434 the following meanings:
3535 (1) BUSINESS. Any commercial or industrial activity or
3636 1
3737 2
3838 3
3939 4
4040 5
4141 6
4242 7
4343 8
4444 9
4545 10
4646 11
4747 12
4848 13
4949 14
5050 15
5151 16
5252 17
5353 18
5454 19
5555 20
5656 21
5757 22
5858 23
5959 24
6060 25
6161 26
6262 27
6363 28 SB169 INTRODUCEDSB169 INTRODUCED
6464 Page 2
6565 any enterprise, trade, profession, occupation, or livelihood,
6666 including the lease or rental of residential or nonresidential
6767 real estate, whether or not carried on for gain or profit, and
6868 whether or not engaged in as a principal or as an independent
6969 contractor, which is engaged in, or caused to be engaged in,
7070 within a municipality.
7171 (2) BUSINESS LICENSE. An annual license issued by a
7272 taxing jurisdiction for the privilege of doing any kind of
7373 business, trade, profession, or any other activity in that
7474 jurisdiction, by whatever name called, which document is
7575 required to be conspicuously posted or displayed except to the
7676 extent the taxpayer's business license tax or other financial
7777 information is listed thereon or unless the municipality
7878 affirmatively elects not to so require. However, municipal
7979 occupational licenses, municipal gasoline taxes, municipal
8080 tobacco taxes, or gross receipts taxes in the nature of a
8181 sales tax, or any other municipal tax now in existence or that
8282 may hereafter be adopted by a municipality pursuant to Section
8383 11-51-90, or any other provision of state law other than an
8484 annual license, shall not be considered "business licenses."
8585 (3) BUSINESS LICENSE REMITTANCE FORM. Any business
8686 license return, renewal reminder notice, or other writing on
8787 which a taxpayer calculates its business license tax liability
8888 for all or part of the license year and remits the amount so
8989 calculated with the form.
9090 (4) DEPARTMENT or DEPARTMENT OF REVENUE. The Alabama
9191 Department of Revenue, as created under Section 40-2-1, et
9292 seq.
9393 29
9494 30
9595 31
9696 32
9797 33
9898 34
9999 35
100100 36
101101 37
102102 38
103103 39
104104 40
105105 41
106106 42
107107 43
108108 44
109109 45
110110 46
111111 47
112112 48
113113 49
114114 50
115115 51
116116 52
117117 53
118118 54
119119 55
120120 56 SB169 INTRODUCEDSB169 INTRODUCED
121121 Page 3
122122 (5) DESIGNEE. An agent of a taxing jurisdiction
123123 authorized to administer or collect, or both, the
124124 jurisdiction's business license taxes, which may include
125125 another taxing jurisdiction, the Department of Revenue, or a
126126 "private auditing or collecting firm" as defined in Section
127127 40-2A-3.
128128 (6) GROSS RECEIPTS. A measure of any and all receipts
129129 of a business from whatever source derived, to the maximum
130130 extent permitted by applicable laws and constitutional
131131 provisions, to be used in calculating the amount due for a
132132 business license. Provided, however, that:
133133 a. Gross receipts shall not include any of the
134134 following taxes collected by the business on behalf of any
135135 taxing jurisdiction or the federal government: All taxes which
136136 are imposed on the ultimate consumer, collected by the
137137 taxpayer, and remitted by or on behalf of the taxpayer to the
138138 taxing authority, whether state, local, or federal, including
139139 utility gross receipts taxes levied pursuant to Article 3,
140140 Chapter 21, Title 40; license taxes levied pursuant to Article
141141 2, Chapter 21, Title 40; or any excise tax imposed by the
142142 federal or state government or any local government whether
143143 called an excise tax or license fee; or reimbursements to
144144 professional employer organizations of federal, state, or
145145 local payroll taxes or unemployment insurance contributions;
146146 but no other deductions or exclusions from gross receipts
147147 shall be allowed except as provided in this article.
148148 b. A different basis for calculating the business
149149 license may be used by a municipality with respect to certain
150150 57
151151 58
152152 59
153153 60
154154 61
155155 62
156156 63
157157 64
158158 65
159159 66
160160 67
161161 68
162162 69
163163 70
164164 71
165165 72
166166 73
167167 74
168168 75
169169 76
170170 77
171171 78
172172 79
173173 80
174174 81
175175 82
176176 83
177177 84 SB169 INTRODUCEDSB169 INTRODUCED
178178 Page 4
179179 categories of taxpayers as prescribed in Section 11-51-90.2.
180180 c. For a utility or other entity described in Section
181181 11-51-129, gross receipts shall be limited to the gross
182182 receipts derived from the retail furnishing of utility
183183 services within a municipality during the preceding year that
184184 are taxed under Article 3 of Chapter 21 of Title 40, except
185185 that nothing herein shall affect any existing contract or
186186 agreement between a municipality and a utility or other
187187 entity. The gross receipts derived from the furnishing of
188188 utility services shall not be subject to further business
189189 license taxation by a municipality.
190190 d. Gross receipts shall not include dividends or other
191191 distributions received by a corporation, or proceeds from
192192 borrowings, the sale of a capital asset, the repayment of the
193193 principal portion of a loan, the issuance of stock or other
194194 equity investments, or capital contributions, or the
195195 undistributed earnings of subsidiary entities.
196196 (7) LICENSE FORM. Any business license application
197197 form, renewal reminder notice, business license remittance
198198 form, or business license return by whatever name called.
199199 (8) LICENSE OFFICER or MUNICIPAL LICENSE OFFICER. The
200200 municipal employee charged by the governing body of the
201201 municipality with the primary responsibility of administering
202202 the municipality's license tax and related matters.
203203 (9) LICENSE YEAR. The calendar year.
204204 (10) MUNICIPALITY. Any town or city in this state that
205205 levies a business license tax from time to time. The term
206206 shall also include the town's or city's police jurisdiction,
207207 85
208208 86
209209 87
210210 88
211211 89
212212 90
213213 91
214214 92
215215 93
216216 94
217217 95
218218 96
219219 97
220220 98
221221 99
222222 100
223223 101
224224 102
225225 103
226226 104
227227 105
228228 106
229229 107
230230 108
231231 109
232232 110
233233 111
234234 112 SB169 INTRODUCEDSB169 INTRODUCED
235235 Page 5
236236 where the business license tax is levied in the police
237237 jurisdiction.
238238 (11) PERSON. Any individual, association, estate,
239239 trust, partnership, limited liability company, corporation, or
240240 other entity of any kind, except for any nonprofit corporation
241241 formed under the laws of Alabama which is operated to enable
242242 municipalities that become members of such nonprofit
243243 corporation to finance or refinance capital projects and
244244 related undertakings, on a cooperative basis, and whose board
245245 of directors or other governing body consists primarily of
246246 elected officials of municipalities.
247247 (12) TAXING JURISDICTION. Any municipality that levies
248248 a business license tax, whether or not a business license tax
249249 is levied within its police jurisdiction, or the Department of
250250 Revenue acting as agent on behalf of a municipality pursuant
251251 to Section 11-51-180, et seq., as the context requires.
252252 (13) TAXPAYER. Any person subject to or liable under
253253 this chapter for any business license tax; any person required
254254 to file a return with respect to, or pay or remit the business
255255 license tax levied under this chapter or to report any
256256 information or value to the taxing jurisdiction; or any person
257257 required to obtain, or who holds any interest in, any business
258258 license issued by the taxing jurisdiction; or any person that
259259 may be affected by any act or refusal to act by the taxing
260260 jurisdiction under this chapter, or to keep any records
261261 required by this chapter.
262262 (14) U.S.C. The applicable title and section of the
263263 United States Code, as amended from time to time.
264264 113
265265 114
266266 115
267267 116
268268 117
269269 118
270270 119
271271 120
272272 121
273273 122
274274 123
275275 124
276276 125
277277 126
278278 127
279279 128
280280 129
281281 130
282282 131
283283 132
284284 133
285285 134
286286 135
287287 136
288288 137
289289 138
290290 139
291291 140 SB169 INTRODUCEDSB169 INTRODUCED
292292 Page 6
293293 (15) OTHER TERMS. Other capitalized or specialized
294294 terms used in Act 2006-586, and not defined above, shall have
295295 the same meanings ascribed to them in Section 40-2A-3 unless
296296 the context otherwise requires."
297297 Section 2. This act shall become effective on the first
298298 day of the third month following its passage and approval by
299299 the Governor, or its otherwise becoming law.
300300 141
301301 142
302302 143
303303 144
304304 145
305305 146
306306 147