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ADOR Issues New Tax Exemption Regulations

Written by Warren Averett on October 16, 2020

On October 1, 2020, the Alabama Department of Revenue (ADOR) issued a notice that taxpayers doing business in Alabama with an ADOR-issued license will now be required to renew any State of Alabama Tax License annually beginning November 1, 2020. This new regulation will require taxpayers with an ADOR-issued license regarding sales tax, rental tax, sellers use tax, lodgings tax, utility gross receipts tax or simplified sellers use tax to renew their license by December 31 of this year. This also means that any current license being held will no longer be valid as of December 31, 2020. Not only will businesses need to renew their own Alabama tax licenses and exemption certificates, but they will need to obtain updated Alabama exemption certificates from their customers.

The notice also included a reminder that businesses must verify that they have not changed legal forms. If a business changes legal form or tax classification, they must apply for new licenses.

The My Alabama Taxes (MAT) website will allow business information to be verified and/or updated for license renewals. This renewal process must be completed annually to ensure a license for each calendar year.

To learn more about how this notice impacts your specific organization, reach out to your Warren Averett advisor directly, or ask a member of our team to reach out to you.

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