Week Three Update
1. HB163 (HB163-int.pdf) passed through the House Financial Services Committee last week and is on to the House floor, where it is on the calendar for today. The bill seeks to “decouple” the state’s treatment of R&D expenses from the TCJA, allowing taxpayers to immediately expense them for state tax purposes. As we mentioned in last week’s Ledger, this bill before the House now contains a retroactive effective date of January 1, 2024, so it could affect your companies and clients with R&D expenses in 2024.
Because this bill would be a win for Alabama businesses, we are advocating for its passage and request that the bill move quickly through the process so tax preparers can advise their clients. We appreciated Rep. David Faulkner (the bill’s sponsor) and Chairman Chris Blackshear for doing their part last week.
2. A bill introduced last week by Sen. Clyde Chambliss, SB174 (SB174-int.pdf), looks to provide relief for businesses from third-party business license assessors. Many counties and municipalities contract with third parties to assess and collect business licenses as a revenue-enhancement service with a fee structure that potentially encourages an undue burden on the taxpayers.
The bill sets up an affordable and accessible appeals process for businesses that are assessed an unfair license fee from a third party. Most counties and municipalities that engage the third parties don’t have a process to handling appeals without the business spending time and money fighting the unfair assessment. If the bill is passed, the Alabama Tax Tribunal would hear those disputes.
We are advocating for the passage of this bill. It is on the Senate’s County and Municipal Government Committee docket for today at 1:00pm.
3. For your convenience, WE’VE ADDED LINKS on the Watchlist to each bill.
-image.png)