Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-5 - USE TAX LAW; CONTRACTORS GROSS RECEIPTS TAX; LODGINGS TAX; RENTAL TAX; UTILITY TAXES; MISCELLANEOUS RULES › Section 810-6-5-.03.01 - Discounts Allowed On Payments Of Contractors Gross Receipts Tax Made Before Delinquency

Current through Register Vol. 42, No. 9, June 28, 2024
(1)
			 Section
			 40-23-50(c)
Code of Ala. 1975
, provides that the sales tax
			 discount authorized by Section
			 40-23-36 shall also apply to contractors gross receipts taxes due and payable to the
			 State of Alabama.
(2) Executive
			 Order Number 2 issued by Governor John Patterson on January 8, 1960,
			 authorized, empowered, and directed the Department of Revenue to allow a
			 discount for contractors gross receipts taxes due and payable to the State of
			 Alabama not to exceed five percent of the first one hundred dollars ($100) of
			 contractors gross receipts taxes levied and two percent of the contractors
			 gross receipts taxes levied over one hundred ($100) per month. This discount
			 was applicable to taxes due and payable on payments made to contractors by the
			 Alabama Department of Transportation on or after October 1, 1959 through May
			 31, 1996 for taxes paid before delinquency.
(3) Executive Order Number 20 issued by
			 Governor Fob James, Jr. on May 31, 1996, authorized, empowered, and directed
			 the Department of Revenue to allow a discount for contractors gross receipts
			 taxes due and payable to the State of Alabama.
This discount could not exceed five percent of the first one
				hundred dollars ($100) of contractors gross receipts taxes levied and two
				percent of the contractors gross receipts taxes levied over one hundred dollars
				($100) and, further, was limited to a total maximum discount of nine hundred
				dollars ($900) per month to any contractor and limited to that amount for each
				contractor regardless of the number of projects upon which that contractor was
				required to report and pay the contractors gross receipts tax. No discount was
				authorized or allowed upon any taxes which were not paid before delinquency.
				This discount was applicable to taxes due and payable on payments made to
				contractors by the Alabama Department of Transportation on or after June 1,
				1996 through April 30, 2001.
(4) Executive Order Number 53 issued by
			 Governor Don Siegleman on May 22, 2001, authorizes, empowers, and directs the
			 Department of Revenue to allow a discount for contractors gross receipts taxes
			 due and payable to the State of Alabama. This discount shall not exceed five
			 percent of the first one hundred dollars ($100) of contractors gross receipts
			 taxes levied and two percent of the contractors gross receipts taxes levied
			 over one hundred dollars ($100) and, further, is limited to a total maximum
			 discount of four hundred dollars ($400) per month to any contractor and shall
			 be limited to that amount for each contractor regardless of the number of
			 projects upon which that contractor must report and pay the contractors gross
			 receipts tax. No discount is authorized or allowed upon any taxes which are not
			 paid before delinquency. This discount is applicable to taxes due and payable
			 on payments made to contractors by the Alabama Department of Transportation on
			 or after May 1, 2001.
Author:
Donna Joyner
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-2A-7(a),
				  40-23-31,
				  40-23-36,
				  40-23-50(c);
				  Executive Order No. 20 and Executive Order No. 53.