Montgomery – With a vote of 96 to 2, the Alabama House on Thursday gave its approval to the “Small Business Tax Relief Act,” a pro-business measure sponsored by State Rep. Barry Moore (R – Enterprise) and included in the House Republican Caucus’ Commonsense Conservative Agenda that was announced a few weeks before the session convened.
“The Small Business Tax Relief Act is designed to help alleviate the burdens and frustrations of collecting sales taxes that many business owners experience,” Moore said. “Because small business owners already shoulder the responsibilities of providing jobs, servicing their customers, and keeping our economy going, we should not make them jump through unnecessary hoops when collecting sales taxes on behalf of the government.”
Under the provisions of House Bill 151, the threshold at which small businesses would be required to make estimated sales tax payments would be increased from $1,000 to $2,500 per month. Raising the threshold will allow an additional 4,000 to 6,000 small businesses to remit sales tax payments after collecting sales revenues rather than fronting the money to the government as current law demands.
Passage of the bill will provide these small businesses with an immediate one-time tax savings of up to $2,500 this year, while also injecting approximately $4.6 million into Alabama’s economy.
Moore said that remitting taxes after earnings will also free up additional capital to pay salaries, purchase equipment and supplies, or to offset increased health insurance costs forced on the backs of working men and women by Obamacare.
The legislation is one of a set of bills prioritized in the House Republican Caucus’ Commonsense Conservative Agenda, which includes pro-business economic development and tax relief measures and other bills addressing important social issues like protecting unborn life and preserving personal religious and moral freedoms from federal mandates.
The bill now moves to the State Senate for consideration.