Alabama Administrative Code

(1) SCOPE - This rule explains the requirements for software developers to obtain and sustain active approval to provide software that allows business privilege tax returns to be electronically filed through the Alabama Business Modernized E-File program. (2) Software developers …

(1) SCOPE - This rule explains the requirements for electronic return originators and transmitters (not to include software developers - See Rule 810-2-8-.14) to obtain and sustain active approval to serve as a Department electronic filing agent in order to transmit returns throu…

(1) Scope - This rule explains the electronic filing mandate requirements for Business Privilege Tax returns prepared by Financial Institution Groups. (2) Definitions. (a) "Financial Institution Group" as defined in Section 40-14A-22(f), Code of Alabama 1975. (b) "Financial Insti…

(1) SCOPE - To define the filing and payment requirements for an Alabama electronic business privilege tax return filed through the Alabama Business Modernized E-File program. Terms are defined to clarify when an electronic return is considered to be timely filed for accepted and…

(1) Scope. These Rules are intended to set forth guidance concerning the application of the apportionment and allocation provisions of § 40-27-1, Code of Ala. 1975, titled "Multistate Tax Compact". The apportionment guidelines set forth in these rules are applicable to any taxpay…

(1) Definitions: (a) Taxpayer. Any corporation, Subchapter K entity, firm, association, governmental unit or agency or other person acting as a business entity in more than one state, but does not include any individual. (b) Apportionment refers to the division of net income betw…

(1) All business income of the taxpayer shall be apportioned to this state by use of the apportionment formula set forth in Code of Ala. 1975, § 40-27-1, § 40-27-1, Article IV.9, as amended. (2) For taxpayers with a business interest in an unincorporated entity (e.g., partnership…

(1) Property Factor: In General. The property factor of the apportionment formula for each trade or business of the taxpayer shall include all real and tangible personal property owned or rented by the taxpayer and used during the tax period in the regular course of the trade or …

(1) Property Factor: Valuation of Owned Property. (a) Property owned by the taxpayer shall be valued at its original cost. As a general rule, "original cost" is deemed to be the basis of the property at the time of acquisition by the taxpayer and adjusted by subsequent capital ad…

(1) As a general rule, the average value of property owned by the taxpayer shall be determined by averaging the values at the beginning and ending of the tax period. However, the Commissioner may require or allow averaging by monthly values if that method of averaging is required…

(1) The payroll factor of the apportionment formula for each trade or business of the taxpayer shall include the total amount paid by the taxpayer in the regular course of its trade or business for compensation during the tax period. (2) Definitions: For purposes of Rule 810-27-1…

(1) Compensation is paid in Alabama if any one of the following tests, applied consecutively, are met if: (a) The employee's service is performed entirely within Alabama. (b) The employee's service is performed both within and outside Alabama, but the service performed outside of…

(1) Sales Factor: In General. (a) Code of Ala. 1975, § 40-27-1, Article IV.1(g) defines the term "sales" to mean all gross receipts of the taxpayer not allocated under paragraphs through (8) of § 40-27-1, Article IV.1(g) . Thus, for the purposes of the sales factor of the apporti…

(1) Sales Factor: Sales of Tangible Personal Property in this State. (a) Gross receipts from sales of tangible personal property (except sales to the United States Government are in this state; see subparagraph (b)) are in this state: 1. If the property is delivered or shipped to…

(1) Effective for tax years beginning after December 31, 2010, § 40-27-1, Code of Ala. 1975, has been amended to state that sales other than sales of tangible personal property are to be sourced to this state if the taxpayer's market for the sale is in this state. For previous ta…

(1) Special Rules: In General. If the allocation and apportionment provisions of § 40-27-1, Code of Ala. 1975, do not fairly represent the extent of the taxpayer's business activity in Alabama, the taxpayer may petition for or the Commissioner may require, in respect to all or an…

(1) In General. Where an airline has income from sources both within and without Alabama, the amount of business income from sources within Alabama shall be determined pursuant to §§ 40-27-1 and 40-27-1.1, Code of Ala. 1975, except as modified by this rule. (a) Apportionment of B…

The following special rules are established in respect to the apportionment of income of long-term construction contractors: (1) In General. When a taxpayer elects to use the percentage of completion method of accounting, or the completed contract method of accounting for long-te…

The following special rules are established with respect to the apportionment of income derived from the publishing, sale, licensing or other distribution of books, newspapers, magazines, periodicals, trade journals or other printed material. (1) In General. Except as specificall…

The following special rules are established in respect to railroads (1) In General. Where a railroad has income from sources both within and without Alabama, the amount of business income from sources within Alabama must be determined pursuant to this rule. In such cases, the fir…

The following special rules are established in respect to the apportionment of income from television and radio broadcasting by a broadcaster that is taxable both in Alabama and in one or more other states. (1) In General. When a person in the business of broadcasting film or rad…

The following special rules are established with respect to trucking companies. (1) In General. As used in this rule, the term "trucking company" means a motor common carrier, a motor contract carrier, or an express carrier which primarily transports tangible personal property of…

The following special rules are established with respect to the apportionment of income from the sale of telecommunications and ancillary services by a person that is taxable both in Alabama and in one or more other states. (1) In general, A person providing telecommunications or…

(1) Scope (a)Public Law 86-272, 15 U.S.C. 381-384, (hereafter " P.L. 86-272 ") restricts a state from imposing a net income tax on income derived within its borders from interstate commerce if the only business activity of the company within the state consists of the solicitation…

(1) Scope. These Regulations are intended to set forth rules concerning the application of the apportionment and allocation provisions of Article IV ("Division of Income") of Code of Ala. 1975, Section 40-27-1, titled "Multistate Tax Compact". The apportionment rules set forth in…

(1) Definitions. (a) 1. For all taxable years ending before January 1, 1997,"taxpayer" means any corporation, Subchapter K entity, firm, association, governmental unit or agency or person acting as a business entity in more than one state. 2. For all taxable years beginning after…

Notes Ala. Admin. Code r. 810-27-1-4-.03 Filed with LRS March 22, 1994. New Rule: Filed June 10, 1994; effective July 15, 1994. Repealed by Alabama Administrative Monthly Volume XXXIV, Issue No. 11, August 31, 2016, eff. 10/6/2016. Author: Peter M. Petrillo, Jr. Statutory Authori…

Author: Notes Ala. Admin. Code r. 810-27-1-4-.04 Statutory Authority: Code of Ala. 1975,

Author: Notes Ala. Admin. Code r. 810-27-1-4-.05 Statutory Authority: Code of Ala. 1975,

Author: Notes Ala. Admin. Code r. 810-27-1-4-.06 Statutory Authority: Code of Ala. 1975,

Author: Notes Ala. Admin. Code r. 810-27-1-4-.07 Statutory Authority: Code of Ala. 1975,

Author: Notes Ala. Admin. Code r. 810-27-1-4-.08 Statutory Authority: Code of Ala. 1975,

All business income of the taxpayer shall be apportioned to this state by use of the apportionment formula set forth in section 40-27-1, Article IV.9. The elements of the apportionment formula are the property factor (see Regulation 810-27-1-4-.10), the payroll factor (see Regula…

(1) The provisions of this regulation are effective for taxable years beginning on or after December 31, 2010. (2) All business income of the taxpayer shall be apportioned to this state by use of the three factor apportionment formula set forth in section 40-27-1, Article IV.9. T…

(a) Property Factor: In General. The property factor of the apportionment formula shall include all real and tangible personal property owned or used during the tax period to produce business income. The term "real and tangible personal property" includes land, buildings, machine…

(a) Property Factor: Valuation of Owned Property. (1) Property owned by the taxpayer shall be valued at its original cost. As a general rule, "original cost" is deemed to be the basis of the property at the time of acquisition by the taxpayer and adjusted by subsequent capital ad…

As a general rule, the average value of property owned by the taxpayer shall be determined by averaging the values at the beginning and ending of the tax period. However, the Commissioner may require or allow averaging by monthly values if that method of averaging is required to …

(a) Payroll Factor: In General. (1) The payroll factor is a fraction, the numerator of which is the total amount paid in this state during the tax period by the taxpayer for compensation in the production of business income, and the denominator of which is the total compensation …

(a) Compensation is paid in this state if any one of the following tests, applied consecutively, are met: (1) The employee's service is performed entirely within the state. (2) The employee's service is performed both within and without the state, but the service performed withou…

(a) Sales Factor: In General. (1) Section 40-27-1, Article IV.1(g) defines the term "sales" to mean all gross receipts of the taxpayer not allocated under paragraphs (5) through (8) of Section 40-27-1, Article IV. Thus, for the purposes of the sales factor of the apportionment fo…

(a) Sales Factor: Sales of Tangible Personal Property in this State. (1) Gross receipts from sales of tangible personal property [except sales to the United States Government; see Regulation 810-27-1-4-.16(b)] are in this state: (A) if the property is delivered or shipped to a pu…

(1) In General. Section 40-27-1, Article IV.17 provides for the inclusion in the numerator of the sales factor of gross receipts from transactions other than sales of tangible personal property (including transactions with the United States Government); under this section, (gross…

(1) Effective for tax years beginning after December 31, 2010, § 40-27-1, Article IV, Paragraph 17, Code of Ala. 1975 has been amended to state that sales other than sales of tangible personal property pursuant to § 40-27-1, Article IV, Paragraph 16, are to be sourced to this sta…

(1) Special Rules: In General. Section 40-27-1, Article IV.18 provides that, if the allocation and apportionment provisions of Section 40-27-1, Article IV do not fairly represent the extent of the taxpayer's business activity in this state, the taxpayer may petition for or the Co…

(1) Scope. (a)Public Law 86-272, 15 U.S.C. 381 - 384, (hereafter " P.L. 86-272 ") restricts a state from imposing a net income tax on income derived within its borders from interstate commerce if the only business activity of the company within the state consists of the solicitat…

(1) In General. In addition to all other recordkeeping requirements otherwise set out in Title 40, Code of Ala. 1975, or any regulations thereunder issued from time to time, every multistate retailer, seller, vendor, or person doing business in Alabama or storing, using, or other…

The Creating Hope and Opportunity for our Students' Education Act of 2024 (hereinafter The CHOOSE Act) makes refundable income tax credits called education savings accounts (ESAs) available to support the success of every K-12 student in Alabama which may be used by parents of pa…

The department is responsible for the allocation of the refundable income tax credit subject to the availability of monies in The CHOOSE Act Fund. The refundable income tax credit, in the form of an ESA, is available to the parent of an eligible student as follows: 1. For the yea…

In order for a parent of an eligible student to validate ESA eligibility requirements to the department, complete and accurate information is required on the application. The parent completing the application must be a parent with whom the eligible student resides. The following …

1. General Requirements. A parent of an eligible student must do all of the following: a. Submit to the department complete and accurate information as required on the application form. b. Agree to claim the refundable income tax credit only for qualified expenses to provide an e…