Title 40 — Title 40

The tax imposed by the provisions of this chapter shall be applicable to the following property: (1) Any intangible personal property of a transferor who is domiciled in the State of Alabama (i) as of the date of the transfer, or (ii) as of the date of his death if such transfer …

(a) The tax imposed by this chapter shall be paid by such individual or entity person as is liable for making payment of the federal generation-skipping transfer tax pursuant to federal law. (b) The tax imposed by this chapter shall be charged to the same property as is designate…

Revenue; Disposition of Proceeds. (a) A duplicate of all the returns filed with the federal authorities in connection with the federal generation- skipping transfer tax shall be filed with the Department of Revenue of the State of Alabama. When such duplicate return is filed with…

The tax hereby levied being based and conditioned upon the levy of a similar tax by the United States, in the event that after due return filed with the federal authorities and the Department of Revenue, the tax shall not have been arrived at when payment would otherwise become d…

The State of Alabama shall have a lien for all taxes and interest thereon which are or may become due hereunder on all property subject to taxes under this chapter, in whatever form of investment it may happen to be, and all property acquired in substitution therefor. History: (A…

This chapter may be cited as the Alabama Uniform Estate Tax Apportionment Act. History: (Act 2007-283, p. 501, §1.)

(a) A person required under Section 40-15B-9 to pay an estate tax greater than the amount due from the person under Section 40-15B-3 or 40-15B-4 has a right to reimbursement from another person to the extent that the other person has not paid the tax required by Section 40-15B-3 …

A fiduciary, transferee, or beneficiary of the gross estate may maintain an action for declaratory judgment to have a court determine and enforce this chapter. In the case of an estate that is being administered in a probate court that has equity powers, the fiduciary, transferee…

In applying and construing this uniform act, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among states that enact it. History: (Act 2007-283, p. 501, §12.)

(a) Sections 40-15B-1 to 40-15B-12, inclusive, of this chapter do not apply with respect to a decedent who dies before January 1, 2008, nor with respect to a decedent who dies after December 31, 2007, if the decedent continuously lacked testamentary capacity from January 1, 2008,…

In this chapter: (1) “Apportionable estate” means the value of the gross estate as finally determined for purposes of the estate tax to be apportioned reduced by: (A) any claim or expense allowable as a deduction for purposes of the tax; (B) the value of any interest in property …

(a) Except as otherwise provided in subsection (c), the following rules apply: (1) To the extent that a provision of a decedent’s will expressly and unambiguously directs the apportionment of an estate tax, the tax must be apportioned accordingly. (2) Any portion of an estate tax…

To the extent that apportionment of an estate tax is not controlled by an instrument described in Section 40-15B-3 and except as otherwise provided in Sections 40-15B-6 and 40-15B-7, the following rules apply: (1) Subject to paragraphs (2), (3), and (4), the estate tax is apporti…

Except as otherwise provided in Sections 40-15B-6 and 40-15B-7, the following rules apply to credits and deferrals of estate taxes: (1) A credit resulting from the payment of gift taxes or from estate taxes paid on property previously taxed inures ratably to the benefit of all pe…

(a) In this section: (1) “Advanced fraction” means a fraction that has as its numerator the amount of the advanced tax and as its denominator the value of the interests in insulated property to which that tax is attributable. (2) “Advanced tax” means the aggregate amount of estat…

(a) In this section: (1) “Special elective benefit” means a reduction in an estate tax obtained by an election for: (A) a reduced valuation of specified property that is included in the gross estate; (B) a deduction from the gross estate, other than a marital or charitable deduct…

(a) A fiduciary may defer a distribution of property until the fiduciary is satisfied that adequate provision for payment of the estate tax has been made. (b) A fiduciary may withhold from a distributee an amount equal to the amount of estate tax apportioned to an interest of the…

(a) A fiduciary responsible for payment of an estate tax may collect from any person the tax apportioned to and the tax required to be advanced by the person. (b) Except as otherwise provided in Section 40-15B-6, any estate tax due from a person that cannot be collected from the …

For the purpose of this chapter, the following terms shall have the respective meanings ascribed to them by this section: (1) FINANCIAL INSTITUTION. Any person, firm, corporation, and any legal entity whatsoever doing business in this state as a national banking association, bank…

(a) For purposes of this section, “trust” shall have the same meaning given to it in Section 40-18-1. (b) Any trust which would be subject to tax under Chapter 18 but which also is a financial institution shall be taxed as a financial institution under this chapter, applying the …

Income. (a) The following items shall be added to federal taxable income for purposes of computing net income under this chapter: (1) The tax due under this chapter that is deducted in computing federal taxable income. (2) State and local taxes that are deducted for purposes of c…

(a) With respect to credit unions only, net income means financial statement income which is the final net income amount, total revenue less total expenses, calculated for financial statement purposes and reported to the Internal Revenue Service as a tax exempt organization and t…

(a) In computing the net income of financial institutions subject to the tax imposed by this chapter, there shall be allowed, in addition to the deductions specified therein, a deduction for the sum of the net operating losses which may be carried forward to the taxable year for …

This section provides for transition rules for the implementation of the Financial Institution Excise Tax Reform Act of 2019. (1) Act 2019-284 imposes for the first time a system of prepaid estimated tax payments patterned after the federal system and transitions the Financial In…

Production credit associations, incorporated pursuant to the provisions of the act of Congress known as the Farm Credit Act of 1933, are not foreign corporations, and any such association which may become taxable by the state shall be subject to the same taxation imposed upon nat…

(a) Every financial institution, no later than the due date, including applicable extensions, for its corresponding federal income tax or federal information return, shall make and file with the Department of Revenue a return, signed under the penalties of perjury by its cashier,…

on or After January 1, 2021. (a)(1) For tax years beginning on or after January 1, 2021, a financial institution excise taxpayer shall be allowed one month following the due date of the corresponding federal income tax return, including applicable extensions, to file the Alabama …

(a)(1) Every such financial institution engaging in any of the following businesses: (i) Banking; (ii) Conducting the business of a financial institution as defined in this chapter; (iii) Conducting a credit card business through the issuance of credit cards to Alabama residents …

Repealed by Act 2019-284, §4, effective January 1, 2020. History: (Acts 1935, No. 194, p. 256; Code 1940, T. 51, §428; Acts 1943, No. 524, p. 490; Acts 1978, No. 840, p. 1247, §4; Acts 1992, No. 92-186, p. 349, §46.)

(a) Financial institutions shall pay estimated financial institution excise tax in accordance with 26 U.S.C. § 6655, except the provisions of 26 U.S.C. § 6655(g)(1)(A)(ii) through (iii) shall not apply. The balance of the tax owed, after reduction by the credits allowed by this c…

(a) The remittance of the excise tax due under this chapter shall be made to the Department of Revenue at Montgomery, Alabama, with checks payable to the Department of Revenue. (b) The Department of Revenue shall promptly distribute the balance of financial institution excise tax…

All moneyed capital employed in the business the privilege of engaging in which is hereby taxed and the shares of all financial institutions, as in this chapter defined, shall be exempted from assessment and payment of ad valorem taxes, except the moneyed capital and shares of an…

Notwithstanding any other laws to the contrary, other than the tax credits allowed by Section 40-16-8, any law enacting or amending a tax credit allowed to a financial institution against the financial institution excise tax imposed by this chapter which becomes effective on or a…

Repealed by Act 2011-565, p. 1084, §45, effective October 1, 2012. History: (Acts 1939, No. 590, p. 958, §1; Code 1940, T. 51, §665(1); Acts 1951, No. 902, p. 1539, §1; Acts 1953, No. 694, p. 947, §1; Acts 1980, No. 80-740, p. 1505; Acts 1992, 2nd Ex. Sess., No. 92-703, p. 172, §…

This section was amended and renumbered as §40-17-300 by Act 2008-275, p. 402, §6, effective August 6, 2008. History: (Acts 1957, No. 743, p. 1173, §2.)

This section was amended and renumbered as §40-17-300 by Act 2008-275, p. 402, §6, effective August 6, 2008. History: (Acts 1957, No. 743, p. 1173, §1.)

This section was amended and renumbered as §40-17-300 by Act 2008-275, p. 402, §6, effective August 6, 2008. History: (Acts 1957, No. 743, p. 1173, §3; Acts 1959, No. 416, p. 1104, §1; Acts 1992, No. 92-203, p. 486, §5.)

This section was amended and renumbered as §40-17-300 by Act 2008-275, p. 402, §6, effective August 6, 2008. History: (Acts 1957, No. 743, p. 1173, §4; Acts 1959, No. 416, p. 1104, §2; Acts 1969, No. 1155, p. 2160; Acts 1992, No. 92-203, p. 486, §6.)

This section was amended and renumbered as §40-17-300 by Act 2008-275, p. 402, §6, effective August 6, 2008. History: (Acts 1957, No. 743, p. 1173, §5; Acts 1959, No. 416, p. 1104, §3; Acts 1969, No. 1155, p. 2160.)

This section was amended and renumbered as §40-17-300 by Act 2008-275, p. 402, §6, effective August 6, 2008. History: (Acts 1957, No. 743, p. 1173, §6.)

This section was amended and renumbered as §40-17-300 by Act 2008-275, p. 402, §6, effective August 6, 2008. History: (Acts 1957, No. 743, p. 1173, §7.)

This section was amended and renumbered as §40-17-300 by Act 2008-275, p. 402, §6, effective August 6, 2008. History: (Acts 1957, No. 743, p. 1173, §7(a).)

This section was amended and renumbered as §40-17-300 by Act 2008-275, p. 402, §6, effective August 6, 2008. History: (Acts 1957, No. 743, p. 1173, §8.)

Repealed by Act 2011-565, p. 1084, §45, effective October 1, 2012. History: (Acts 1969, No. 403, p. 789, §2.)

Repealed by Act 2011-565, p. 1084, §45, effective October 1, 2012. History: (Acts 1969, No. 403, p. 789, §1.)

Repealed by Act 2011-565, p. 1084, §45, effective October 1, 2012. History: (Acts 1969, No. 403, p. 789, §3; Acts 1992, No. 92-203, p. 486, §7.)

Repealed by Act 2011-565, p. 1084, §45, effective October 1, 2012. History: (Acts 1969, No. 403, p. 789, §5.)

and Regulations. Repealed by Act 2011-565, p. 1084, §45, effective October 1, 2012. History: (Acts 1992, No. 92-203, p. 486, §8.)

Repealed by Act 2011-565, p. 1084, §45, effective October 1, 2012. History: (Acts 1939, No. 590, p. 958, §13; Code 1940, T. 51, §665(13); Acts 1951, No. 838, p. 1469; Acts 1969, No. 786, p. 1416; Acts 1978, No. 581, p. 658.)

Repealed by Act 2011-565, p. 1084, §45, effective October 1, 2012. History: (Acts 1939, No. 590, p. 958, §14; Code 1940, T. 51, §665(14); Acts 1951, No. 902, p. 1539, §7; Acts 1995, No. 95-410, p. 881, §1.)