On Tuesday night, May 28, Gov. Kay Ivey signed into law House Bill 419, the Alabama Financial Institution Excise Tax Reform Act of 2019 (FIETRA), which resulted from a collaborative effort between the banking community,...more
5/31/2019
/ Banking Sector ,
Corporate Taxes ,
Department of Revenue ,
Excise Tax ,
Federal Agency Taskforce ,
Federal Taxes ,
Financial Institutions ,
Governor Ivey ,
Income Taxes ,
New Legislation ,
State Taxes ,
Tax Cuts and Jobs Act ,
Tax Planning ,
Tax Reform
In a 5-3-1 decision, the Alabama Supreme Court ruled on Friday that the sale of computer software in Alabama is subject to sales or use tax, even if it’s customized in whole or in part for a particular user (see Ex parte...more
Two landmark bills were introduced in the Alabama Legislature on April 11, potentially affecting numerous businesses in the state. Committees of the House of Representatives are expected to consider the Financial Institution...more
4/16/2019
/ Banking Sector ,
Excise Tax ,
Financial Institutions ,
Income Taxes ,
Innovation ,
Proposed Legislation ,
Research and Experiment Tax Credit ,
State Taxes ,
Tax Credits ,
Tax Deductions ,
Tax Incentives ,
Tax Reform
Just before Christmas, the influential Public Affairs Research Council of Alabama (PARCA), the nonpartisan think tank headquartered at Samford University, released its annual report, How Alabama Taxes Compare. The contents...more
Sometimes the law of unintended consequences is difficult to correct after the fact. The most recent example may be the 2017 Tax Cuts and Jobs Act’s $10,000 annual limitation on state and local tax deductions claimed by...more
1/4/2019
/ C-Corporation ,
Charitable Donations ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Limited Liability Company (LLC) ,
Pass-Through Entities ,
Proposed Regulation ,
PTEs ,
S-Corporation ,
Safe Harbors ,
SALT ,
Scholarship Granting Organizations (SGOs) ,
State Taxes ,
Tax Credits ,
Tax Cuts and Jobs Act ,
Tax Deductions ,
Tax Planning ,
U.S. Treasury
On October 29, the well-respected Public Affairs Research Council of Alabama (PARCA), headquartered at Samford University, issued a useful report finding Alabama’s “booming economy” had generated substantially increased tax...more
11/1/2018
/ Budget Surplus ,
Economic Development ,
ETFs ,
Federal Taxes ,
General Fund ,
Income Taxes ,
Sales & Use Tax ,
SALT ,
State Constitutions ,
State Taxes ,
Tax Cuts and Jobs Act ,
Tax Deductions ,
Tax Liability ,
Tax Reform ,
Tax Revenues
On July 31, the Alabama Department of Revenue (ADOR or Department) released its long-awaited and quite comprehensive analysis of the impact of the Tax Cuts and Jobs Act of 2017 (otherwise known as “federal tax reform”) on...more
9/5/2018
/ Corporate Taxes ,
Department of Revenue ,
Excise Tax ,
Federal Taxes ,
Financial Institutions ,
Foreign Earned Income ,
GILTI tax ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Pass-Through Entities ,
Proposed Regulation ,
S-Corporation ,
State and Local Government ,
State Taxes ,
Tax Cuts and Jobs Act ,
Tax Reform
On July 31, the Alabama Department of Revenue (ADOR) released its long-awaited “Analysis of Federal Tax Law Revisions on the State of Alabama,” a comprehensive review of the changes brought about by the Tax Cuts and Jobs Act...more
8/13/2018
/ C-Corporation ,
Corporate Taxes ,
Department of Revenue ,
Foreign Earned Income ,
GILTI tax ,
Governor Ivey ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Pass-Through Entities ,
Sole Proprietorship ,
State Taxes ,
Tax Cuts and Jobs Act ,
Tax Exempt Entities ,
Tax Exemptions ,
Tax Reform ,
UBTI
Many predicted that the 2018 regular session of the Alabama Legislature would be less eventful than in years past since members of the House of Representatives and Senate are up for re-election this year, and most lawmakers...more
3/20/2018
/ Delinquency Status ,
Hiring & Firing ,
Income Taxes ,
Legislative Agendas ,
Local Taxes ,
Municipal Taxes ,
Proposed Legislation ,
SALT ,
State and Local Government ,
State Taxes ,
Tax Amnesty ,
Tax Credits ,
Tax Deductions ,
Veterans
With the Dec. 22 enactment of the federal Tax Cuts and Jobs Act, many Alabamians and companies doing business in our state should see a reduction in their 2018 federal income tax bills but, somewhat surprisingly, an increase...more
1/29/2018
/ Alternative Minimum Tax ,
Business Taxes ,
Charitable Donations ,
Corporate Taxes ,
Income Taxes ,
New Legislation ,
SALT ,
State Taxes ,
Tax Cuts and Jobs Act ,
Tax Deductions ,
Tax Planning ,
Tax Rates ,
Tax Reform ,
Trump Administration
Alabama local governments are combatting revenue losses and concomitant budget issues primarily because of the loss of their sales tax base to online sellers and because of their citizens’ demand for more or increasingly...more
1/29/2018
/ AL Supreme Court ,
Appeals ,
Business Licenses ,
Business Privilege Tax ,
E-Commerce ,
Exports ,
Imports ,
Internet Retailers ,
Municipalities ,
Out-of-State Companies ,
Retail Market ,
State and Local Government ,
State Taxes ,
Tax Appeals ,
Tax Assessment ,
Tax Revenues
The well-respected Public Affairs Research Council of Alabama (PARCA), the non-profit think tank headquartered at Samford University in Birmingham, recently published its periodic report, How Alabama Taxes Compare, which...more
The “Tax Cuts and Jobs Act” has passed both chambers of Congress and is expected to be signed by President Trump soon. Details of the final agreement among House and Senate Republicans include rate cuts for “C” corporations,...more
12/21/2017
/ Affordable Care Act ,
Business Taxes ,
Corporate Taxes ,
Income Taxes ,
Individual Mandate ,
International Tax Issues ,
Legislative Agendas ,
Local Taxes ,
Mortgage Interest ,
Pending Legislation ,
R&D Tax Credits ,
State Taxes ,
Tax Deductions ,
Tax Rates ,
Tax Reform ,
Trump Administration
Details of a final agreement among House and Senate Republicans emerged last week -- including rate cuts for “C” corporations, individuals and pass-through businesses. Here’s a summary of what the conferees have agreed to,...more
12/18/2017
/ Affordable Care Act ,
Alternative Minimum Tax ,
Business Taxes ,
Corporate Taxes ,
Income Taxes ,
Individual Mandate ,
International Tax Issues ,
Legislative Agendas ,
Local Taxes ,
Mortgage Interest ,
Pass-Through Entities ,
Proposed Legislation ,
R&D Tax Credits ,
State and Local Government ,
State Taxes ,
Tax Deductions ,
Tax Rates ,
Tax Reform ,
Trump Administration
The Alabama Legislature adjourned late Friday, May 19, with several tax bills crossing the finish line during the final week (and many on the last day). Both the Education Trust Fund and General Fund budgets were passed by...more
During the recently ended legislative special session, Senate President Pro Tem, Senator Del Marsh (R-Anniston), introduced and quickly passed Senate Resolution 20 that establishes an exploratory committee aimed at evaluating...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
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
On December 17, the Council On State Taxation (COST) announced that Alabama’s grade in their “Best and Worst of State Tax Administration” scorecard on Tax Appeals and Procedural Requirements, otherwise known as the “Due...more
In September 2010, a small group of Alabama taxpayers brought a second class action lawsuit against Revenue Discovery Systems/Alatax (“RDS”) alleging that RDS and its auditors committed multiple violations of the Alabama...more
Last spring, the Alabama Legislature passed the landmark Alabama Taxpayer Fairness Act, Act # 2014-146, the modified successor to a bill long known as the Alabama Taxpayers’ Bill of Rights II (“TBOR II”). Although the lengthy...more
On December 16, 2013, the Council On State Taxation (COST) released its fifth edition of the COST Due Process Scorecard on Tax Appeals and Procedural Requirements. For the second time in as many scorecards, Alabama ranked in...more
The Alabama Department of Revenue has just finalized its new local nexus regulation, Ala. Admin. Code Rule 810-6-5-.04.02, that will apply to transactions occurring on or after January 1, 2014, following its rule-making...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
A new report by the Public Affairs Research Council of Alabama (PARCA), a well-respected nonprofit research organization headquartered at Samford University in Birmingham, shows that frequent statements during the 2012...more