Since the landmark Alabama Accountability Act was enacted in 2013, allowing individual and corporate donors to provide scholarship funds for underprivileged children in our state who are zoned for underperforming public...more
The House and Senate have each met a total of six legislative days thus far. There are therefore 24 legislative days remaining in the 2017 Regular Session. The House will reconvene on Tuesday, February 28 at 1:00 p.m. The...more
2/28/2017
/ Constitutional Amendment ,
Defined Contribution Plans ,
Dentists ,
Department of Revenue ,
Excise Tax ,
Gross Receipts Tax ,
Legislative Agendas ,
License Fees ,
Lottery ,
Lump Sum Payments ,
Minimum Wage ,
Municipalities ,
Pending Legislation ,
Prescription Drugs ,
Property Tax ,
Sales & Use Tax ,
Sellers ,
State and Local Government ,
Tax Credits ,
Tax Deferral ,
Tax Exemptions ,
Tax Preparers ,
Tribal-State Gaming Compacts ,
Water Districts
The 2017 legislative session begins February 7th in Montgomery, and we expect several tax-related proposals to be considered during the session. Our readers may recall that the 2016 session ended with no long-term plan in...more
1/13/2017
/ Department of Revenue ,
Infrastructure ,
Internet Retailers ,
Legislative Agendas ,
Nexus ,
Out-of-State Companies ,
Prison ,
Sales Tax ,
State and Local Government ,
State Budgets ,
Tax Credits ,
Tax Reform
Before 2014, Alabama sales tax applied only to the sale of prepaid calling cards or authorization numbers, pursuant to Ala. Code §40-23-1(a)(13). In 2014, the Alabama Legislature amended the above statute to “clarify” that it...more
11/23/2016
/ Administrative Procedure Act ,
Appeals ,
Constitutional Challenges ,
Department of Revenue ,
Jurisdiction ,
Leave to Amend ,
Prepaid Payment Products ,
Sales Tax ,
Standard of Review ,
Tax Tribunal ,
Trial de Novo ,
Wireless Internet Service Providers
The Alabama Accountability Act provides state income tax credits to certain donors who make contributions to a state-approved scholarship granting organization (SGO). Alabama’s neediest school children can be helped at little...more
The ADOR has proposed a number of amendments to its rule governing the filing of partnership tax returns, Form 65. The new rule, as proposed, inserts language conforming with Alabama’s recently enacted “factor presence nexus”...more
The Alabama Department of Revenue (ADOR) quietly filed its Answer in the ongoing challenge by Newegg, Inc. to the so-called economic nexus threshold set forth in ADOR Rule 810-6-2.90.03 for certain out-of-state retailers. In...more
Beginning June 30 and running through August 30, the Alabama Department of Revenue (ADOR) is offering many taxpayers an opportunity to come forward voluntarily and pay a litany of delinquent state and state-administered local...more
The Alabama Department of Revenue’s (ADOR) well-publicized effort to subject remote sellers to the state's sales and use tax regime is designed primarily to force either the U.S. Supreme Court or Congress to settle questions...more
Last month, the ADOR proposed a new rule, Rule 810-3-35-.01, in order to simplify the federal income tax deduction available to corporations doing business in Alabama. The ADOR proposed to repeal the current corporate federal...more
The Alabama Department of Revenue (ADOR) recently proposed numerous changes to its apportionment rules for corporate income taxpayers, with the stated intention of adopting “recommended amendments to the [Multistate Tax...more
In preparation for the 2016 regular session, which begins on February 2, several of Alabama's key trade and business organizations recently announced their tax legislative agendas. As reflected in these agendas, the 2016...more
This SALT Alert summarizes many of the major legislative, judicial, and administrative developments affecting Alabama business taxpayers with respect to income, transactional, and property taxes. The Spring 2015 legislative...more
Beginning January 1, 2016, all organizations that have a statutory exemption from the payment of Alabama sales, use or lodgings taxes--other than certain government entities, public universities and healthcare...more
Summary -
Governor Robert Bentley called a second special session of the Alabama Legislature on Tuesday, September 9 at 5 p.m. to address the FY 2016 General Fund budget and associated revenue measures. After meeting for...more
9/22/2015
/ Ad Valorem Tax ,
Business Privilege Tax ,
Centers for Medicare & Medicaid Services (CMS) ,
Combined Reporting ,
Department of Revenue ,
ETFs ,
Excise Tax ,
FICA Taxes ,
Gas Taxes ,
General Fund ,
Healthcare ,
Legislative Agendas ,
Lottery ,
Medicaid ,
Pharmacies ,
Property Tax ,
State Budgets ,
State Taxes ,
Tax Amnesty ,
Tax Increases ,
Tax Rates ,
Tax Reform ,
Tax Revenues ,
Tobacco ,
Tribal Government Programs
Consistent with Governor Robert Bentley’s public statement last week that he hopes Amazon.com or another internet e-tailer will sue the state of Alabama regarding its position on nexus, the Alabama Department of Revenue...more
8/6/2015
/ Administrative Procedure Act ,
Amazon ,
Commerce Clause ,
Department of Revenue ,
Due Process ,
Governor Bentley ,
Nexus ,
NPRM ,
Out-of-State Companies ,
Physical Presence Test ,
Quill ,
Sales & Use Tax ,
SCOTUS
Yesterday afternoon, the Alabama Department of Revenue (ADOR) withdrew its controversial proposed digital tax regulation, Rule 810-6-5-09, likely in response to the request of the Legislative Council’s newly-appointed...more
As previously reported, the Alabama Department of Revenue proposed a regulation imposing a rental tax on digital transmissions, broadly defined as “on demand movies, television programs, streaming video, streaming audio, and...more
7/8/2015
/ App Store ,
Cable Television Providers ,
Congressional Investigations & Hearings ,
Department of Revenue ,
Digital Media ,
Digital Services ,
Internet Streaming ,
Legislative Agendas ,
Netflix ,
Rental Tax ,
Tangible Property ,
Television Broadcast Stations
The Alabama Department of Revenue has issued a proposed regulation that, if finalized in its present form, would substantially expand the scope of the state and local rental tax applied to video-on-demand and other digital...more
Chief Judge Bill Thompson of the newly-established Alabama Tax Tribunal ("the Tribunal") issued his first, and a key, ruling involving the scope of his authority when the taxpayer, Stone Bridge Farms of Cullman, Alabama, does...more
As you end your telephone conversation with the revenue examiner, you think to yourself, “Thank goodness, this one is finally over!” The audit of your biggest client started over three years ago, and has seemingly dragged on...more
Chief Judge Bill Thompson of the newly-established Alabama Tax Tribunal has issued his first ruling involving the scope of his authority as a judge when the taxpayer did not specifically raise an argument or defense in its...more
After several months’ wait and efforts to deal with pesky tax and geographical issues involving the police jurisdictions that surround most Alabama municipalities, the Alabama Department of Revenue last Friday posted a very...more
Replacement Local Nexus Rule: The Alabama Department of Revenue’s (ADOR) new local nexus regulation, Rule 810-6-5-.04.02, is now in effect and applies to all transactions occurring on or after January 1, 2014. The ADOR...more
For the past several legislative sessions, the Alabama Legislature has considered a bill to establish an independent tax tribunal outside the Alabama Department of Revenue (“ADOR”). Rep. Paul DeMarco (R-Homewood) introduced...more