Kay Ivey signs HB 391, providing tax relief to small businesses
On Wednesday Gov. Kay Ivey signed House Bill 391, a bill that will eliminate the business privilege tax for Alabama small businesses and will provide relief to more than 230,000 small businesses. The bill was sponsored by Rep. Steve Clouse and Sen. Tom Butler. Currently, the Alabama Business Privilege Tax levies a minimum of $100 annually on corporations, limited liability entities, and other businesses in Alabama. The tax remains due every registered year until the entity is legally dissolved, regardless of whether or not such entity is actively doing business in Alabama. In a press release, Ivey emphasized the need to provide relief for small businesses. “Alabama’s small businesses are the soul of our economy, and as long as I am your governor, I will continue to be a champion for these hardworking men and women. We are providing real relief to our small businesses,” stated Governor Ivey. “I commend Chairman Clouse and Senator Butler for their leadership and the Alabama Legislature for their work to support our small businesses. This will go a long way in providing support for some 230,000 small businesses for years to come.” Ivey commented on Twitter, “I’m proud to sign HB 391, providing relief from the business privilege tax for 230,000+ AL small businesses. Small businesses are the would of our economy, & as long as I’m your governor, I’ll continue to be a champion for these hardworking men & women.” The exemption is projected to save the state’s small businesses an estimated $23 million a year. The law cuts the $100 minimum business privilege tax in half to $50 for small businesses in 2023, and it completely exempts small businesses from the minimum tax beginning in 2024.
