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Alabama Department of Revenue Announces Sales Tax Relief for Small Businesses

On March 18, 2020, the Alabama Department of Revenue (ADOR) announced that, effective immediately, ADOR is extending relief to small retail businesses that are unable to timely pay their February, March, and April sales tax liabilities.

Small businesses whose monthly retail sales during the previous calendar year averaged $62,500 or less may file their monthly sales tax returns for the February, March, and April 2020 reporting periods without paying the state sales tax reported as due. Late payment penalties will be waived for these taxpayers through June 1, 2020.

ADOR indicated that similar sales tax relief may be available on a case-by-case basis to other businesses significantly impacted by the coronavirus (COVID-19) and the preventative measures being taken to limit its spread in Alabama.

ADOR encouraged taxpayers to visit ADOR's COVID-19 Updates page or call ADOR's Sales and Use Tax Division at 334-242-1490 to obtain more information about this small business tax relief measure.

Please note that ADOR did not address whether local, state-administered sales taxes are covered by this relief, and Balch & Bingham is seeking clarification. Please feel free to reach out to us with any questions about the state’s extended sales tax filing.