MONTGOMERY — Legislation removing a requirement for businesses to file an annual report with the state passed a House committee on Wednesday.

Legislators and Gov. Kay Ivey passed a law in 2022 completely phasing out the state's $100 business privilege tax starting at the beginning of 2024.

House Bill 230 by State Reps. Margie Wilcox (R-Mobile) and Kerry Underwood (R-Tuscumbia) would also remove an accompanying corporate annual report filing requirement with the Alabama Secretary of State's Office.

The bill is supported by Alabama Secretary of State Wes Allen.

"When the Legislature passed the bill, cutting that tax. It kicked the annual report up under another code section which kicked it to us which started in January 1st of this year, 2024. We've heard from several folks, (saying) 'Hey, it's just an extra step.' It is an extra step. It's just more red tape and it's a filing fee of $10 bucks. There's no need in it," Allen told 1819 News in a recent interview. "Why do we need it? You've already filed under business entities with the office. People can find you. We just think it's a red tape reduction bill and of course, cutting fees which we think is great."

Rosemary Elebash, the Alabama director of the National Federation of Independent Business, a small business trade organization, told 1819 News the bill was about getting rid of an "unnecessary" requirement on businesses.

"It's a reduction in paperwork. It's a reduction in paying your tax preparer to prepare the report. I'm looking at this as one of those red tape reduction pieces of legislation. It's very helpful to businesses, particularly small businesses," she added.

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