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October 13, 2020
2020-2466

Alabama adopts new policy requiring annual renewal of most tax registrations beginning November 1, 2020

The Alabama Department of Revenue (Department) announced that, beginning November 1, 2020, taxpayers will be required to renew most of their Alabama tax licenses on an annual basis. 1 For calendar year 2021, Alabama-registered taxpayers must renew their licenses during the period between November 1 and December 31, 2020, or the licenses will be cancelled. A taxpayer that fails to renew its licenses, under Ala. Code Section 40-23-6.1, may no longer use its sales-and-use-tax license to make tax-exempt purchases for resale or rental purposes. This is the first time Alabama has required license renewals.

The new annual registration requirement applies to the following Alabama taxes:

  • Sales tax
  • Rental tax
  • Sellers use tax
  • Lodgings tax
  • Utility Gross Receipts Tax
  • Simplified Sellers Use Tax (SSUT)

Taxpayers will be required to review and/or update the following information through the My Alabama Taxes website:

  • Current legal name (review)
  • Owner/officer/member information (review and/or update)
  • Phone number(s) (review and/or update)
  • Social Security numbers/FEINs (review)
  • Location address(es) including doing business as (d/b/a) for each location — (review and/or update)
    • Main address (review)
    • Location address(es) (review and/or update)

Businesses that changed their entity type will need to apply for a new license.

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Contact Information
For additional information concerning this Alert, please contact:
 
State and Local Taxation Group
   • Matt Crockett (matt.crockett@ey.com)

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ENDNOTES

1 Ala. Dept. of Rev., NOTICE Annual Renewal of Alabama Tax Licenses (October 1, 2020).

 

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