By Brandon Moseley
Alabama Political Reporter
The Alabama House Republicans Caucus announced on Thursday, January 16, that the Small Business Tax Relief Act’ sponsored by Representative Barry Moore has passed the House
By a vote of 96 to 2, the Alabama House gave its approval to the “Small Business Tax Relief Act.” The pro-business measure sponsored by State Rep. Barry Moore (R) from Enterprise was part of the ambitious House Republican Caucus’ Commonsense Conservative Agenda announced weeks before the session convened.
Rep. Moore said, “The Small Business Tax Relief Act is designed to help alleviate the burdens and frustrations of collecting sales taxes that many business owners experience. 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 Alabama law currently 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.
Rep. Moore said in his written release 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 part of the House Republican Caucus’ Commonsense Conservative Agenda..
The bill, HB 151, now moves to the Alabama State Senate for their consideration.