Under existing law, a utility gross receipts tax is levied on utility services. Revenue and Taxation Section 40-21-53. It is a graduated rate based on a company’s federal taxable income, ranging from 25 cents to $1.75 for each $1,000 of net worth. The tax shall be computed monthly with respect to each person to whom such services are furnished, in accordance with the following table: (b) There is hereby levied a privilege or license tax against every utility furnishing telegraph or telephone services in the State of Alabama. Act #2001-1090 further provides that on or after February 1, 2002, the utility furnishing such telegraph or telephone services shall be entitled to deduct and retain from the gross amount of tax billed by the utility 9/10 of 1% of the amount of such tax billed in consideration of the costs incurred by the ut ility in collecting and remi tting the tax levied by subsection 40-21-82(b). These taxes can be particularly severe for start-ups and entrepreneurs, who typically post losses in early years while still owing gross receipts payments. Article 3 - Utility Gross Receipts Tax. The amount of the tax shall be determined by the application of rates against gross sales or gross receipts, as the case may be, from the furnishing of such services in the State of Alabama. Sales tax collections were a record $2.5 billion, up about $50 million from 2019. Individual tax returns totaled 2,139,463, of which 1,877,239 were filed online and 1,193,337 were sent by a paid preparer, the report said. Article 3 - Utility Gross Receipts Tax. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs. They must provide specific information to … Copyright © 2021, Thomson Reuters. Alabama law (Sections 40-21-83 and 40-21-103) allows exclusions from the utility gross receipts tax and the utility service use tax if electricity or natural gas is used in an electrolytic or electro-thermal manufacturing or compounding process. Utility Gross Receipts Tax Exclusion. (11) TAXPAYER. The rate cannot exceed 3 percent. Alabama Code > Title 40 > Chapter 21 > Article 3 – Utility Gross Receipts Tax. Any keeping or retention in the State of Alabama of utility services for any purpose, except sale in the regular course of business or subsequent use solely outside the State of Alabama. Five states impose gross receipts taxes statewide, while eight more considered proposals to enact a gross … The tax is calculated based on gross sales, at 4% for receipts of $40,000 or less and $2,200 plus 2% of excess over $60,000 for companies having over $60,000 in sales. 2006-552 requires payments that are $750 or greater to be made electronically through an Electronic Funds Transfer (EFT) method. Section 40-21-82.1 - Exemptions. Google Chrome, Sewer costs are not taxed. Individual refunds were issued to 1,155,558 Alabamians for a total of $662,541,121, or about $570 each. FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. (2) DOMESTIC WATER. Am I required to pay my taxes electronically?Yes. Income tax accounted for 48% ($4.9 billion) of 2020 revenues. (d) The provisions of subsection (c) do not create any customer right to require that, for purposes of determining the amount of tax applicable to a transaction, either the utility or the department allocate or attribute the bundled charge to the different portions of the transaction in order to minimize the amount of tax charged to the customer. The service provider collects the tax based on the rate established by the local authority. Business taxpayers are required to file their returns electronically using My Alabama Taxes (MAT). Microsoft Edge.