If you have received a Medical Cannabis Privilege tax delinquency notice from ALDOR, and you have not filed the required return or made the required payment, do so now to avoid further interest and penalties. Medical Cannabis Privilege Tax Returns must be filed in My Alabama Taxes. See “How do I register for My Alabama Taxes?” if you do not have a My Alabama Taxes account. Instructions can be obtained by clicking on the ALDOR Form page and selecting Medical Cannabis Privilege Tax from the “Categories/Tax” filter. If you are uncertain if a return was required or filed, please forward a copy of the delinquency notice to your tax professional.
My Alabama Taxes: Taxpayers can make ACH debit payments and credit card payments through their My Alabama Taxes account.
My Alabama Taxes billing payment: Make an ACH debit payment or credit card payment by clicking Pay A Bill I’ve received under Quick payments from the www.myalabamataxes.alabama.gov home screen. A My Alabama Taxes login is not required, just the billing letter received.
Taxpayer Assistance Group (TAG): Call 334-353-8096 to make a credit card payment over the telephone.
Mail: Check or money orders may be mailed if the amount owed is less than $750. Attach voucher Form MPT-V and payment.
Mail to address below:
Alabama Department of Revenue
Business Privilege Tax Section
P.O. Box 327320
Montgomery, AL 36132-7320
My Alabama Taxes is ALDOR’s online filing and payment system. All future annual MPT returns are required to be filed electronically through My Alabama Taxes.
Once approved and the Medical Cannabis License is issued, ALDOR will receive the registration information from Alabama Medical Cannabis Commission’s license application. A Medical Cannabis Privilege Tax (MPT) account will be issued to the taxpayer. The account number along with a Sign-On ID and Access Code for My Alabama Taxes will be provided in an “Online Filing Info” letter to the taxpayer. Once this letter is received, taxpayers need to visit https://myalabamataxes.alabama.gov/_/#1. In the upper right side of the screen, you will see Username, Password, and Sign In. Beneath that you will see the link “Create a My Alabama Taxes account.” Click this link to register. Select: Medical Cannabis Privilege Tax. Then provide the Account number, Sign On ID, and Access Code. This information is located on the (Online Filing Info) letter.
Contact the Business Privilege Tax Section (334-242-1170, option 8) if you have questions about the Medical Cannabis Privilege Tax.
If you believe you received the delinquency notice in error and have filed the required return, please provide a copy of the return submission confirmation and proof of payment after consulting with your tax professional. Attach copies of the return confirmation and proof of payment to a copy of the Medical Cannabis Privilege tax delinquency notice and email to medicalcannabisprivilegetax@revenue.alabama.gov or mail the response to:
Alabama Department of Revenue
Income Tax Administration
Business Privilege Tax Section – Delinquency Notice Response
P.O. Box 327900
Montgomery, AL 36132-7900
The Alabama Department of Revenue’s records indicate the required return and payment for the tax due have not been received. Businesses licensed by the Medical Cannabis Commission are liable for the Alabama Medical Cannabis Privilege tax for each taxable year during which the business is licensed – regardless of the level of business activity. The minimum Medical Cannabis Privilege tax is $100, and the maximum Medical Cannabis Privilege tax is $15,000.
The federal taxable income to be used for S corporations and limited liability entities is the total amount of income passed through to the shareholders, members, or partners. 810-2-8-.01(1)(b) and 810-2-8-.01(1)(c)
The federal taxable income to be used for S corporations and limited liability entities is the total amount of income passed through to the shareholders, members, or partners. 810-2-8-.01(1)(b) and 810-2-8-.01(1)(c)
To determine the tax rate for the Medical Cannabis Privilege Tax, begin with the federal taxable income. Then multiply that amount by the taxpayer’s apportionment factor. The resultant amount is used to determine the appropriate rate from the rate schedule.
The relationship between a taxpayer’s Determination Period and the taxpayer’s taxable year is, at first, confusing. But, to understand how to properly compute the Alabama Medical Cannabis Privilege Tax, one must first understand the terms Determination Period and Taxable Year.
DETERMINATION PERIOD: The determination period is defined in §40-14A-1, Code of Ala. 1975, as “the taxpayer’s taxable year next preceding the taxpayer’s current taxable year.”
Generally, the Determination Period is the taxpayer’s previous taxable year.
TAXABLE YEAR: the taxable year is defined in §40-14A-1, Code of Ala. 1975, as: “the fiscal year used by the taxpayer to file returns required under the income tax levied by Chapter 18 or the financial institution excise tax levied by Chapter 16, or, in the case of an insurance company subject to the premium tax levied by Chapter 4A of Title 27, the calendar year.”
Generally, Taxable Year means the year (whether calendar year or fiscal year) used by the taxpayer to report its taxes.
Prepare and submit the amended return through My Alabama Taxes.
Yes, the following documents will be required to be uploaded when filing the return:
The Annual Alabama Medical Cannabis Privilege Tax return is required to be filed electronically through ALDOR’s Online filing and payment system – My Alabama Taxes. There is no paper filing option for this return.
If you are making a payment by check, mail your payment along with Form MPT-V to:
Alabama Department of Revenue
Medical Cannabis Privilege Tax Section
P.O. Box 327320
Montgomery, AL 36132-7320
The Medical Cannabis Privilege Tax is required to be filed electronically. The initial return (MPT-IN) is to be filed electronically through the Medical Cannabis License Application Portal upon approval and issuance of the Medical Cannabis License. The Annual Medical Cannabis Privilege Tax return (MPT) is required to be filed electronically through ALDOR’s Online filing and payment system – My Alabama Taxes. The Instructions for the MPT-In and Annual MPT filing and MPT Payment Voucher (MPT-V) are available for download (revenue.alabama.gov, click on Forms). Select “Medical Cannabis Privilege Tax” in the “Categories/Tax” drop down box in the Filter Forms search tool.
ALDOR follows the IRS filing and extension dates for taxpayers filing Medical Cannabis Privilege Tax return (MPT). The six-month extension for filing the MPT return will be granted automatically. The amount of tax due must be paid on or before the original due date, without extension. There is no extension of time to file the initial return (MPT-IN). The MPT-IN must be filed within 2 1/2 months after the issuance of the Medical Cannabis License. Form MPT-V must accompany all Medical Cannabis Privilege tax payments unless payments are made electronically.
The Medical Cannabis Privilege tax return due date corresponds to the due date of the entity’s corresponding federal return.
An initial Medical Cannabis Privilege tax return is the first return due after the taxpayer is licensed by the Alabama Medical Cannabis Commission. Newly licensed medical cannabis entities (categories of cultivator, processor, dispensary, secure transporter, and testing laboratory, or integrated facility) are required to file an Initial Medical Cannabis Privilege Tax Return (MPT-IN) and to pay the privilege tax reported on the return upon approval of the license but no later than 2 1/2 months after date of licensing or commencement of business in Alabama, whichever occurred first. The MPT-IN is to be filed electronically through the Medical Cannabis Commission’s License portal upon final approval of the medical cannabis license. The MPT-IN filing instructions, including the Medical Cannabis Privilege Tax Calculation worksheet are available at MPT-IN Instructions.
Once your MPT-IN return is processed, a Medical Cannabis Privilege Tax (MPT) account number along with a My Alabama Taxes sign-on ID and access code will be issued. To create a My Alabama Taxes account, the assigned credentials are required. All future MPT returns are required to be submitted electronically through My Alabama Taxes at https://myalabamataxes.alabama.gov/.
Payment of the tax may be made electronically at the time of filing. If payment is to be made by check or money order, it should be submitted with a completed payment voucher (MPT-V) by the payment due date which is 2 1/2 months following the issuance of the license. The MPT-V can be downloaded from the Forms page.
If the Alabama Medical Cannabis Privilege Tax is paid after the payment due date, late payment penalty and interest will be due.
The Alabama Medical Cannabis Privilege Tax is levied on all persons doing business in Alabama under Title 20 Chapter 2A - the Darren Wesley 'ATO' Hall Compassion Act. See Section 20-2A-80(b)(1), Code of Alabama 1975.
§20-2A-80(b)(1), Code of Ala. 1975, requires all licensed medical cannabis entities (categories of cultivator, processor, dispensary, secure transporter, and testing laboratory, or integrated facility) to file the Medical Cannabis Privilege Tax Return and to pay the privilege tax.
