Some Alabama small businesses will see monthly tax break starting Oct. 1

ALABAMA (WCBI) – Some Alabama small businesses will see a monthly tax break starting October 1.

The new legislation removed the monthly estimated sales tax requirement for businesses with less than $20,000 in average monthly sales tax liability.

This basically impacts stores with less than $500,000 in monthly sales.

They will pay sales taxes based on the previous month’s sales tax receipts.

Governor Kay Ivey said the stores will now pay taxes after the point of sale, allowing for more cash flow.

It’s estimated that 3,000 will be impacted. Those stores will be notified by letter.

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Categories: State News