Gov. Kay Ivey has signed a bill that reportedly exempts small businesses in Alabama from the business privilege tax.
The legislation was signed as House Bill 391 and was sponsored by Rep. Steve Clouse (R – HD93) and Sen. Tom Butler (R – SD2).
According to an announcement from Ivey the bill will relieve more than 230,000 small businesses in the state.
“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,” Ivey said in the announcement.
“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.”
The privilege tax levies a minimum $100 on businesses but with the new bill this will be reduced to $50 for small businesses in the tax year 2023 and will exempt them from the minimum tax beginning in 2024.
The tax will remain in place for bigger businesses, including corporations and limited liability entities.