March 7, 2022March 7, 2022
By TODD STACY, Alabama Daily News
MONTGOMERY, Ala. – Senate President Pro Tem Greg Reed said Friday that the Legislature will consider repealing the state’s business privilege tax.
Appearing on Alabama Public Television’s Capitol Journal, Reed listed doing away with the business privilege tax as one of several tasks the Senate would take up as part of a package of tax relief bills down the stretch of the legislative session.
“Alabama’s economy is strong. Our receipts have been increased into both the General Fund and education budget, so there’s an opportunity for us to give a tax break to the people of the state of Alabama – give those resources back to the people,” Reed said. “We’ve heard over and over, ‘why are we paying this privilege tax to be a business owner in the state of Alabama?’”
Reed said the estimated revenue loss from repealing the tax would be about $25 to $27 million.
Senate Bill 290 from Sen. Tom Butler, R-Madison, does not repeal the business privilege tax completely but does phase it out for many small businesses. The legislation would reduce the minimum business privilege tax for the next year from $100 to $50, then take it away entirely for those businesses paying the minimum.
In effect, smaller businesses with lower taxable income would become exempt from paying the state’s business privilege tax under Butler’s bill.
“We want to support businesses. We want to support our small businesses in particular, so if there’s a way to eliminate this business privilege tax, then let’s work on it,” Reed said.
Reed said the tax relief package would include five bills impacting retirees and working families, in addition to businesses. Total tax savings would be more than $130 million, Reed said.
There are 12 legislative days remaining in the 2022 Regular Session.
Reed’s comments on tax cut legislation begin at 20:40.
