HB511 By Representatives Ledbetter, Shedd, Whorton (R), Sanderford, Pettus, Butler, Farley, Harper, Williams (JW), Wilcox, Hanes, Whorton (I) and Sessions RFD Ways and Means General Fund Rd 1 07-APR-16

SYNOPSIS: This bill would provide a two-year abatement of all state and local ad valorem tax for newly formed Alabama small business employers and would define an Alabama new small business employer.

A BILL TO BE ENTITLED AN ACT

To provide a two-year state and local ad valorem tax abatement for certain Alabama new small business employers.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:

Section 1. This act shall be known and may be cited as the Alabama New Small Business Employer Ad Valorem Tax Abatement Act.

Section 2. For the purpose of this act, the following words and phrases shall have the following meanings:

(1) ALABAMA NEW SMALL BUSINESS EMPLOYER. A business organization duly formed, organized, or qualified to do business in the state, after October 1, 2016, with its headquarters or principal place of business in the state, and having 50 or fewer employees during the tax year in which the ad valorem tax abatement is claimed pursuant to this act.

(2) DEPARTMENT. The Alabama Department of Revenue.

Section 3. (a) An Alabama new small business employer is hereby allowed an abatement of all state and local ad valorem taxes for the first two tax years after it qualifies.

(b) To qualify for the abatement, the employer must apply to the Department of Revenue and be approved by the department.

(c) The abatement shall be allowed against any state and local ad valorem tax imposed on the property of any qualifying Alabama new small business.

(d) The tax abatement may not be allowed to decrease a taxpayer's liability to less than zero in any tax year. The tax abatement is not transferable or refundable.

Section 4. The department may adopt rules consistent with this act as necessary to implement and administer this act.

Section 5. All laws or parts of laws which conflict with this act are repealed.

Section 6. This act shall become effective October 1, 2016, following its passage and approval by the Governor, or its otherwise becoming law.

Taxation

Tax Abatement

Small Business

Popular Names