ALABAMA DEPARTMENT OF REVENUE
SALES, USE & BUSINESS TAX DIVISION
SALES & USE TAX RULE
810-6-5-.03.01. Discounts Allowed on Payments of Contractors Gross
Receipts Tax Made Before Delinquency.
(1) Section 40-23-50(c), Code of Alabama 1975, provides that the sales
tax discount authorized by Section 40-23-36 shall also apply to contractors
gross receipts taxes due and payable to the State of Alabama.
(2) Executive Order Number 2 issued by Governor John Patterson on January
8, 1960, authorized, empowered, and directed the Department of Revenue to allow
a discount for contractors gross receipts taxes due and payable to the State
of Alabama not to exceed five percent of the first one hundred dollars ($100)
of contractors gross receipts taxes levied and two percent of the contractors
gross receipts taxes levied over one hundred ($100) per month. This discount
was applicable to taxes due and payable on payments made to contractors by the
Alabama Department of Transportation on or after October 1, 1959 through May
31, 1996 for taxes paid before delinquency.
(3) Executive Order Number 20 issued by Governor Fob James, Jr. on May
31, 1996, authorized, empowered, and directed the Department of Revenue to allow
a discount for contractors gross receipts taxes due and payable to the State
of Alabama. This discountcould not exceed five percent of the first one hundred
dollars ($100) of contractors gross receipts taxes levied and two percent of
the contractors gross receipts taxes levied over one hundred dollars ($100)
and, further, was limited to a total maximum discount of nine hundred dollars
($900) per month to any contractor and limited to that amount for each contractor
regardless of the number of projects upon which that contractor was required
to report and pay the contractors gross receipts tax. No discount was authorized
or allowed upon any taxes which were not paid before delinquency. This discount
was applicable to taxes due and payable on payments made to contractors by the
Alabama Department of Transportation on or after June 1, 1996 through April
30, 2001.
(4) Executive Order Number 53 issued by Governor Don Siegelman on May
22, 2001, authorizes, empowers, and directs the Department of Revenue to allow
a discount for contractors gross receipts taxes due and payable to the State
of Alabama. This discount shall not exceed five percent of the first one hundred
dollars ($100) of contractors gross receipts taxes levied and two percent of
the contractors gross receipts taxes levied over one hundred dollars ($100)
and, further, is limited to a total maximum discount of four hundred dollars
($400) per month to any contractor and shall be limited to that amount for each
contractor regardless of the number of projects upon which that contractor must
report and pay the contractors gross receipts tax. No discount is authorized
or allowed upon any taxes which are not paid before delinquency. This discount
is applicable to taxes due and payable on payments made to contractors by the
Alabama Department of Transportation on or after May 1, 2001. (Adopted through
APA effective October 8, 1996, amended October 4, 2001)
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