HB 77 — 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.

HB77 INTRODUCEDENROLLED L6TDAY-1L6TDAY-2 By Representative Garrett RFD:

07-Mar-23 2023 Regular Session Page 0 L6TDAY-1HB77 03/07/2023Enrolled PMGEnrolled, (L)tgwAn 2023-747Act, 23 4Relating SYNOPSIS:to sales tax;

Under existing law, a sales tax licensee whose average monthly state sales tax liability was $5,000 or greater during the preceding calendar year is required to make estimated payments.

This bill would increase the average monthly state sales tax liability threshold calculation to $20,000 or greater during the preceding calendar year for required estimated payments.

A BILL TO BE ENTITLED AN ACT Relating to sales tax;

"§40-23-7 Page 1 HB77 INTRODUCED (a) The taxes levied under this division, except as otherwise provided in subsection (d), shall be due and payable in monthly installments on or before the 20th day of the month next succeeding the month in which the tax accrues.

(c) Any taxpayer liable for taxes under this division whose average monthly state sales tax liability was five thousand dollars ($5,000) twenty thousand dollars ($20,000) or greater during the preceding calendar year shall make Page 1 HB77 Enrolled estimated payments to the department on or before the 20th day of the month in which the liability occurs as follows:

(2) Any outstanding credit or deficit arising from the taxpayer's overpayment or underpayment of his or her final liability shall be applied to either increase or reduce that month's final tax liability which shall be reported and paid Page 2 HB77 INTRODUCED not later than the 20th day of the month next succeeding the month in which the tax accrues.

Qualifying taxpayers electing to file quarterly, semi-annually, or annually, shall report to the department, on a form prescribed by the department, a true and correct statement showing such information as the Page 2 HB77 Enrolled department may require.

(2) When the total state sales tax for which any person is liable under this division is less than $1,200 during the Page 3 HB77 INTRODUCED preceding calendar year, or the person liable for the tax has made retail sales in this state during no more than two, 30 consecutive day periods during the preceding calendar year, the person may file semi-annual returns.

(3) When the total state sales tax for which any person is liable under this division during the preceding calendar year is less than six hundred dollars ($600), or the person 95 liable for the tax has made retail sales in this state during no more than one, 30 consecutive day period during the preceding calendar year, the person may elect to file an annual return.

The annual return and payment of the tax shown to be due shall be due on or before January 20 following the Page 3 HB77 Enrolled end of the annual period for which the tax is due.

Page 4 HB77 Enrolled 95 97 99 ________________________________________________ Speaker of the House of Representatives ________________________________________________ President and Presiding Officer of the Senate House of Representatives I hereby certify that the within Act originated in and was passed by the House 20-Apr-23.

John Treadwell Clerk Senate 31-May-23 Passed Page 5