Alabama Seeks to Change Threshold for Advance Sales Tax Payments
- Mar 25, 2014 | Gail Cole
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.
