18349: AL - Privilege Tax Amount Due (Drake23)

Alabama has changed the minimum tax due on the Alabama privilege tax forms. On AL Forms BPT-IN, PPT, and CPT, the minimum tax has been reduced from $100 to $0 for 2024. Privilege tax is filed and paid for the upcoming tax year, so the forms are dated for the next tax year (2024) in the current-year software (Drake23). Due to the updated law, any taxpayer that would have been subject to the previous $100 minimum no longer pays tax and does not have a filing requirement. In Drake23: 

• If the gross privilege tax calculated is $100 or less, the taxpayer neither owes tax nor files the return.
• If the gross privilege tax calculated is greater than $100, the taxpayer must pay the exact amount up to the maximum tax liability limit.

The calculated gross privilege tax must range from $1 - $100 to reduce the amount of privilege tax due to $0. In the following example, $88 in tax was calculated; however, since $88 does not exceed $100, the amount due is $0 instead, and the filing requirement is waived: 

Per AL e-file specifications, returns that do not have a tax calculated cannot be filed electronically unless there is a refund due or “No Alabama Factor Presence Nexus” is marked on the privilege tax form.

​

Per the Form PPT Instructions:

    "Minimum Business Privilege Tax. Alabama Act 2022-252 amends Section 40-14(A)-22. For taxable year 2024, taxpayers who would be subject to the minimum tax due of one hundred dollars ($100) do not have a filing requirement."

    "Line 19. Privilege Tax Due – Enter the difference between line 17 and line 18. If $100 or less, STOP. You do not have a filing requirement. Do not submit return. This amount is also entered on page 1 of Form PPT on line 5 (Privilege Tax Due) in the Computation of Amount Due or Refund Due area of page 1.”

Per the Form BPT-IN Instructions: 

    "Minimum Business Privilege Tax. Alabama Act 2022-252 amends Section 40-14(A)-22. For taxable year 2024, taxpayers who would be subject to the minimum tax due of one hundred dollars ($100) do not have a filing requirement."

    "Line 20. Privilege Tax Due. Multiply line 18 (Gross Tax Due) by line 19 (Ratio of Days Remaining in Taxable Year) If $100 or less, STOP. You do not have a filing requirement. Do not submit return. This amount is also entered on page 1 of Form BPT-IN on line 14 (Privilege Tax Due)."

 Per the Form CPT Instructions: 

    "Minimum Business Privilege Tax. Alabama Act 2022-252 amends Section 40-14(A)-22. For taxable year 2024, taxpayers who would be subject to the minimum tax due of one hundred dollars ($100) do not have a filing requirement."

    "Line 20. Privilege Tax Due – Enter the difference between line 18 and 19. If $100 or less, STOP. You do not have a filing requirement. Do not submit return. This amount is also entered on page 1 of Form CPT on line 5, in the Computation of Amount Due or Refund Due area of the page."