1. (1) §40-23-50, Code of Ala. 1975, provides that the sales tax discount authorized by §40-23-36, Code of Ala. 1975, also applies to contractor’s gross receipts tax due and payable to the state.

2. (2) The contractor’s gross receipts tax discount is calculated as follows:

   1. (a) Five percent (5%) of the first $100 of tax.
   2. (b) Two percent (2%) of the tax over $100.
   3. (c) Discount is limited to a maximum of $400 per month.
3. (3) The discount authorized is limited to each contractor regardless of the number of projects upon which the contractor must report and pay contractors gross receipts tax. No discount is authorized or allowed for any taxes not paid before delinquency.

Author: Christy Vandevender

Statutory Authority: Code of Ala. 1975, §§40-2A-7(a), 40-23-31, 40-23-36, 40-23-50(c); Executive Order No. 51 and Executive Order No. 53.

History: New Rule: Filed September 3, 1996; effective October 8, 1996. Amended: Filed August 30, 2001; effective October 4, 2001. Repealed and New Rule: Published October 31, 2024; effective December 15, 2024.