Alabama House Bill 230, signed into law on May 7, 2024 and became effective on October 1, 2024 (last month) eliminates the requirement for businesses to file annual reports with the Secretary of State. The Business Privilege Tax Return is still a required filing with the Alabama Department of Revenue.  The Alabama Business Privilege Tax is levied for the privilege of being organized under the laws of Alabama or doing business in Alabama (if organized under the laws of another state or country).

As an unintended consequence of Alabama Act 2022-252, businesses were required to file annual reports with the Secretary of State’s office rather than the Department of Revenue effective January 1, 2024. This inadvertent change resulted in numerous complaints and confusion from Alabama business owners.

The legislation received letters of support from the Alabama Retail Association, Alabama Society of CPAs, the Alabama National Federation of Independent Business, and small business owners across Alabama.

“Simplifying the requirements put on small businesses, especially when an error in compliance could result in the loss of a business’s registration, is a worthwhile cause,” said Secretary of State Wes Allen.