MONTGOMERY — Governor Kay Ivey signed legislation reducing government red tape for Alabama small businesses on Tuesday.
Legislators and 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 removed 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.
“As Secretary of State, I will always support the hardworking men and women of Alabama as they pursue the American Dream,” Allen said. “I am proud to have supported legislation that cuts government red tape and removes an unnecessary burden from the shoulders of Alabama small business owners.”
As an unintended consequence of the 2022 business privilege tax elimination, businesses were required to file annual reports with the Secretary of State’s office rather than the Department of Revenue effective January 1, 2024. The change resulted in numerous complaints and confusion from Alabama business owners. HB 230 removed the requirement for businesses to file an annual report with the Secretary of State’s Office. The legislation received letters of support from the Alabama Retail Association, Alabama Society of CPAs, the Alabama National Federation of Independent Business, and small business owners across Alabama.
“Simplifying the requirements put on small businesses, especially when an error in compliance could result in the loss of a business’s registration, is a worthwhile cause,” Allen said.
The bill was sponsored by State Rep. Margie Wilcox (R-Mobile), State Rep. Kerry Underwood (R-Tuscumbia) and State Sen. David Sessions (R-Grand Bay).
“I am proud to have sponsored legislation that removes an unnecessary requirement on Alabama businesses,” Wilcox said. “HB 230 prevents business owners from needing to pay accountants up to fifteen times the cost of the $10.00 report to navigate the confusing filing requirement. The passage of HB 230 makes operating a business in Alabama more manageable for business owners.”
To connect with the author of this story or to comment, email caleb.taylor@1819News.com.
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