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Alabama Seeks to Change Threshold for Advance Sales Tax Payments


 Alabama may change the threshold for advance sales tax payments.

Update, 8.8.2014: The changed described below took effect on August 1, 2014.

The Alabama House and Senate have both passed House Bill 151, legislation that seeks to change the threshold for advance sales tax payments. The bill now goes to Governor Robert Bentley (R) for his signature.

Under current law, “any taxpayer liable for the payment of state sales taxes whose average monthly tax liability was $1,000 or greater during the preceding calendar year must make estimated monthly payments to the Department of Revenue based on the actual tax liability for the same calendar month of the preceding year.”

If HB 151 is enacted, “the average monthly tax liability threshold for a taxpayer to be required to make estimated payments” would increase to $2,500 or greater. It would take effect August 1, 2014.

According to the Huffington Post, there would be “no long-term change” in state sales tax revenue. However, there would be “a one-time $4.5 million loss in sales tax collection” from the change.

File sales tax returns accurately and on time, every time.


Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.