Making good on a promise, Gov. Kay Ivey signed legislation Friday to lower the prepaid sales tax burden on hundreds of small businesses in Alabama.
In her State of the State Address, Ivey called on lawmakers to adopt this legislation. The bill – House Bill 77 – increases the threshold for submitting estimated monthly sales tax payments from $5,000 to $20,000 in average monthly sales tax liability.
“Our economic stability begins and ends with the success of our small businesses, and it’s imperative that leaders at all levels of government actively look for ways to cut red tape and help them thrive,” Ivey said. “Eliminating the requirement for our small businesses with less than $500,000 in monthly sales to prepay taxes is a no-brainer. It not only frees up capital but also allows owners to focus solely on turning a profit every month and staying in business.
“This is an example of good government, and I commend the men and women of the Legislature for passing this bipartisan legislation for the people of our state.”
The Alabama Department of Revenue estimates this legislation will positively impact more than 3,000 small businesses in the state.
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