Week Four Update
1. HB163 (HB163-int.pdf) passed through the House last week thanks to Rep. David Faulkner. This bill contains a retroactive effective date of January 1, 2024, so it could affect your companies and clients with R&D expenses in 2024. It has been assigned to the Finance and Taxation – Education Committee in the Senate.
We are advocating for its passage and request that the bill move quickly through the process so tax preparers can advise their clients. Sen. Dan Roberts has agreed to carry the bill in the Senate. Although we don’t anticipate any pushback to its passage, we are battling against the clock. If it doesn’t pass by the end of this week, it will be the 3rd week of March at the earliest due to their first “spring break” next week.
2. Sen. Clyde Chambliss’s SB174 (SB174-int.pdf) passed through a public hearing in its Senate Committee with the NFIB and others speaking on behalf of the bill. It 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.
3. The Legislature will be taking its first of two “spring break” weeks next week. They’ll reconvene the following week, then take their second week-long break. To recap, they’re in session the 1st and 3rd weeks of March, off the 2nd and 4th weeks.
-image.png)