Yellowhammer Times

The Alabama Legislature concluded its 2025 session on May 14, with several bills passed to support small businesses. NFIB State Director Rosemary Elebash highlighted the legislative victories that aim to ease financial burdens for business owners and families.

Among the measures approved is House Bill 386, which reduces the state sales tax on groceries from 3% to 2%. The bill also permits local governments to lower their grocery taxes. This initiative is projected to save Alabama families approximately $121.9 million annually.

House Bill 543 offers relief through increased tax exemptions on business personal property, raising the threshold from $40,000 to $100,000. This adjustment exempts about 83% of Alabama businesses from paying state personal property taxes. Local governments have the option to adopt similar exemptions by passing resolutions or ordinances.

Another significant change comes with House Bill 505, which extends the period for appealing final tax assessments from 30 days to 60 days. Taxpayers can submit appeals either to the Alabama Tax Tribunal or a circuit court.

Senate Bill 174 mandates cities and counties report collected business license taxes to the Alabama Department of Revenue and allows businesses to appeal local license tax decisions. It also prevents third-party companies from collecting taxes or fees not legally owed.

Additionally, Senate Bill 233 modifies the Ad Valorem Tax Advisory Committee by adding two consumer representatives who will advocate for taxpayer interests alongside existing tax officials.

These legislative changes reflect efforts by lawmakers and advocates like Elebash to address concerns faced by small businesses in Alabama.