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 Alabama Accountability Act of 2013 (the “Act”) provides state income tax credits to certain donors who make contributions to a state-approved scholarship granting organization (SGO) operating within Alabama. The Act was...more
The Alabama Senate adjourned sine die on Thursday, June 4, and the Alabama House of Representatives met for their last day on Thursday, June 11. Although the legislature passed a record-setting, $6 billion Education Trust...more
The Alabama Senate adjourned late Thursday afternoon, June 4, leaving a number of pending bills on the table. Although the legislature passed a record-setting $6 billion Education Trust Fund budget, the issue that pervaded...more
On March 2 in an 8-1 decision, the Alabama Supreme Court upheld the constitutionality of the Alabama Accountability Act of 2013 (the “Act”) in Magee et al. v. Boyd et al. The massive 222-page opinion affirmed in part, but...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
This SALT Alert summarizes the major legislative, judicial, and administrative developments affecting Alabama business taxpayers with respect to income, transactional, and property taxes, as well as several updates on...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
Abraham Lincoln reportedly asked, ‘‘If you call a dog’s tail a leg, how many legs does a dog have?’’ His answer was, ‘‘Four. Calling a dog’s tail a leg does not make it a leg.’’ Similarly, when businesses classify workers,...more
In 2012, Dr. Robert A. Robicheaux, well-respected Professor in the Department of Marketing, Industrial Distribution and Economics at the University of Alabama at Birmingham’s Collat School of Business, issued a report titled...more
In International Business Machines Corp. v. Department of Treasury, the Michigan Supreme Court ruled that IBM was entitled to apportion its business income for purposes of the Michigan Business Tax (“MBT”) using the...more
The 2014 regular session of the Alabama legislature has been underway for over two months and is nearing its end. The legislature is off this week for Spring Break, then returns on Tuesday, April 1, for three final meeting...more
3/25/2014
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Tax Credits
As expected, House Ways and Means Committee Chair Dave Camp (R-Mich.) released his long-awaited tax reform discussion draft on Wednesday, February 26, in which he seeks to lower the individual and corporate tax rates as well...more
Last night, the Alabama Senate passed by a vote of 26-0 Substitute House Bill 105, formerly known as the Alabama Taxpayers’ Bill of Rights II (TBOR II) and recently renamed the “Alabama Taxpayer Fairness Act,” which...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
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
Our final Alabama SALT Alert of 2013 summarizes the major legislative, judicial, and administrative developments affecting Alabama taxpayers with respect to income, transactional, and property taxes so far this year. The 2013...more
12/4/2013
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
In a ruling that could have widespread impact, the Alabama Department of Revenue’s (“ADOR”) Chief Administrative Law Judge Bill Thompson held that private schools in Alabama are not exempt from state or local sales and use...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
The Alabama Department of Revenue (“ADOR”) has withdrawn its controversial proposed local nexus rule, Ala. Admin. Code prop. r. 810-6-5-.04.02, and replaced it with a proposal that is narrower in scope and more...more
In the latest decision in the ongoing saga between CSX and the Alabama Department of Revenue (“ADOR”), the Eleventh Circuit U.S. Court of Appeals ruled that Alabama’s imposition of sales tax on diesel fuel purchases by...more
The Alabama Department of Revenue (“ADOR”) is expected to issue a revised and much less controversial version of its proposed local nexus rule by July 25. The revised rule is expected to be narrower in scope than the...more
On June 21, the Alabama Department of Revenue (“ADOR” or “Department”) released proposed rules interpreting the landmark Alabama Accountability Act of 2013 (“AAA” or “Act”), Acts of Alabama 2013-64, as amended by Acts of...more
An Alabama circuit court recently held that a taxpayer’s method of calculating a refund under Alabama’s wholesale oil license tax was reasonable, affirming Chief Administrative Law Judge Bill Thompson’s extensive 2009 ruling....more