Skip to content

Some Small Businesses to Benefit from New Tax Law

Some Small Businesses to Benefit from New Tax Law

September 26, 2023

Over 3,000 businesses will no longer have to pay extimated sales taxes

Some Small Businesses to Benefit from New Tax Law

Gov. Kay Ivey today implemented a major tax reform initiative to help Alabama small businesses. Beginning Oct. 1, more than 3,000 Alabama small businesses will no longer be required to pay monthly estimated sales taxes to the state Department of Revenue. Governor Ivey signed the changes into law in June.

The new law removes the monthly estimated sales tax requirement for businesses with less than $20,000 in average monthly sales tax liability. Affected small businesses will be required to pay sales taxes based on the previous month’s sales tax receipts, payable in monthly installments on or before the 20th of the month.

According to the Alabama Department of Revenue, businesses’ monthly sales tax returns for the calendar year 2022 will be reviewed to identify those that are affected by the new law. Those who are affected by the change in threshold will be notified by letter.

NFIB State Director Rosemary Elebash told WBMA-ABC 33/40 in Birmingham that the change would be a big help to small businesses dealing with inflation and Alabama’s labor shortage. “This is a tremendous savings, not in doing estimated sales tax, but also saves the paperwork that small business owners have to provide every month,” she said.

Get to know NFIB

NFIB is a member-driven organization advocating on behalf of small and independent businesses nationwide.

Receive our newsletter and email notification
Knowledge is power. Let us help you stay informed with breaking legislative news, regulatory updates, business tips, and more.

Related Articles

February 3, 2025
Vermont Capitol Update
In his budget address and other public comments, Governor Phil Scott called…
Read More
February 3, 2025
NY Capitol Update: 2025 Executive Budget Proposal
The state has estimated budget gaps of $6.5 billion in 2027, $9.8 billion i…
Read More
January 31, 2025
Gov. Stein Announces $30 Million Grant Program For Small Busine…
Impacted businesses lost $18 billion in revenue because of the hurricane.
Read More
January 30, 2025
Workforce Development Tops NFIB’s Agenda for 2025 Leg…
This year’s session begins on Feb. 4
Read More

© 2001 - 2025 National Federation of Independent Business. All Rights Reserved. Terms and Conditions | Privacy Policy | Accessibility