Tuesday, Feb. 20, was “Small Business Day” in the Alabama House, and legislators passed several bills that would help the state’s small businesses:
Tax Rate Notification: SB 111 by Sen. Paul Sanford (Huntsville) received final passage in the House with Rep. Ritchie Whorton (Owens Cross Roads) handling the bill on the House floor. The legislation was recommended by the NFIB Tax Advisory Committee. It would require local taxing jurisdictions to notify the Department of Revenue 60 days in advance of implementing a tax change. In addition, allow relief for taxpayers from liability for incorrect tax collections if errors are made in reliance on rate information provided by DOR on behalf of local governments. Currently, the notification is 30 days and taxpayers are held liable for filing a published incorrect tax rate.
Administrative Procedures Act: SB 5 by Sen. Paul Sanford (Huntsville) received final passage in the House with Rep. Paul Lee (Dothan) sponsoring the legislation. The bill requires state agencies promulgating rules and regulations to include notification to the Alabama Legislative Council that the proposed rule change is being litigated in court. The NFIB Tax Advisory Committee recommended changes to the Alabama Administrative Procedures Act.
“Traveling through the jurisdiction”: HB 107 by Rep. Paul Lee (Dothan) passed 95-0 in the House. The legislation would provide that a business license is not required for a person traveling through a municipality on business if the person is not operating a branch office or doing business in the municipality. HB 107 is scheduled for a hearing in the Senate County and Municipal Government Committee on Wednesday, Feb. 28.
“Classification of a farmer”: HB 242 by Rep. David Sessions (Grand Bay) passed 97-0 in the House. The legislation grants a sales tax exemption for a farmer who cultivates and harvests an agricultural product on leased or rented land. The bill exempts the sale of pine straw products by the person who harvested the product. Last year, an NFIB member contacted the state office when he was audited by the DOR. Since he leased land to cultivate his pine straw, the DOR interpreted the statutory meaning as the NFIB member did not plant the tree, hence he was not a farmer and could not wholesale his product. The bill clearly states if you lease or rent land to cultivate an agricultural product, you are classified as a farmer.
Service Dogs Housing Act: HB 198 by Rep. Matt Fridy (Birmingham) passed the Senate Judiciary Committee on a voice vote after a public hearing. The bill would require documentation and create requirements for the need of a service dog to be provided to landlords for entry of service dogs into a commercial housing or a lodging establishment. Misrepresentation of an animal as an assistance animal will result in penalties and a second offense will be a Class B misdemeanor. For several years, NFIB members have complained about customers presenting certificates printed from the Internet stating their animal is a service dog. If the business owner challenged the customer, the customer threatened to sue or hire a law firm to send a “demand letter” for damages up to $5,000.
