The 2022 regular session saw an estimated $107 million in tax cuts enacted that will directly benefit Alabama businesses. The session also included several changes to alcohol policy, including 18-year-old servers in restaurants plus drive-thru and takeout alcohol service.
Other issues tackled included requiring basic information from third-party sellers on online marketplaces and keeping rental companies from having to get full business licenses in every city they deliver. Of the 873 bills introduced in the regular session that began Jan. 11 and ended April 7, more than 80 carried the most concern for retailers. An account of how select bills among those fared during the 2022 regular session follows.
The Legislature is expected to meet in special session in the fall to appropriate another round of federal pandemic relief funds. Lawmakers elected this year (May 24 primary/Nov. 8 general election), will meet in January for an organizational session. The 2023 regular session begins March 7, 2023.
For legislative and other news of relevance to retailers,
read Retail News for the 2022 Regular Session.
RETAIL NEWS FOR THE 2022 REGULAR SESSION
- SMALL BUSINESS: Starting in May, those with less than $1.5 million in sales in 2021, no longer have to prepay sales tax monthly; 75% of businesses exempt from business personal property tax as of Oct. 1, 2023
- MINIMUM BUSINESS PRIVILEGE TAX: $100 minimum goes to $50 in 2023, zeroed out by 2024
- UC INSURANCE TAX: Average employer should see almost 30% reduction this year
- FOR INDIVIDUALS: Child, earned income and dependent care tax credits shielded from 2021 state income taxes; first $6,000 in taxable retirement income exempt; optional standard deduction increased
- As of July 1, 18-year-olds can serve alcohol in responsible vendor restaurants
- Curbside/takeout alcohol can return July 1; drive-thru beer and wine possible by Jan. 1, 2023
- Wine-to-go containers approved, five cities expand or create entertainment districts; four cities can add draft beer