Title 40

(a) Every employer, as defined under the laws of the United States in effect July 1, 1982, or as subsequently may be defined, with respect to income tax collected at source, making payment of wages as defined under such laws to employees, shall deduct and withhold upon such wages…

If the remuneration paid by an employer to an employee for services performed during one half or more of any payroll period of not more than 31 consecutive days constitutes wages, all the remuneration paid by such employer to such employee for such period shall be deemed to be wa…

(a) Every employee, on or before the date of commencement of employment, shall furnish his or her employer with a signed Alabama withholding exemption certificate relating to the number of withholding exemptions which he or she claims, which in no event shall exceed the number to…

(a) This section shall be known and may be cited as the “Provisional Construction Employer Withholding Act.” (b)(1) Subsequent to August 1, 2007, in addition to the other requirements contained in this title, all provisional construction employers shall be required to: a. Post a …

(a) Every employer required to deduct and withhold tax under Section 40-18-71 shall for each quarterly period, on or before the last day of the month following the close of each quarterly period, file a return and pay to the Department of Revenue the tax required to be withheld u…

(a) Every person required to deduct and withhold from an employee a tax under Section 40-18-71 shall furnish to each such employee in respect of the remuneration paid by such person to such employee during the calendar year, on or before January 31 of the succeeding year, or, if …

An employer shall be liable for the payment of the tax required to be deducted and withheld under Section 40-18-71 and shall not be liable to any person for the amount of any such payment. (Acts 1955, No. 289, p. 661, §7.)

(a) Where there has been an overpayment of tax under Section 40-18-71, refund or credit shall be made to the employer only to the extent that the amount of such overpayment was not deducted and withheld under Section 40-18-71 by the employer. (b) Any refund allowed by this sectio…

The amount deducted and withheld as tax under Section 40-18-71 during any calendar year upon the wages of any individual shall be allowed as a credit to the recipient of the income against the tax imposed by Section 40-18-5 for taxable years beginning in such calendar year. If mo…

Where there has been an overpayment of any tax imposed under Section 40-18-71 or 40-18-80, the amount of such overpayment, if a petition for refund is timely filed or the department otherwise allows an automatic refund within that period, may be credited against any income tax or…

(a) Individuals. Individuals shall pay estimated income tax in accordance with 26 U.S.C. § 6654 except: (1) The provisions of 26 U.S.C. § 6654(d)(2)(C)(iii) and 26 U.S.C. § 6654(f)(2) shall not apply; (2) Five hundred dollars ($500) shall be substituted for the amount provided fo…

(a) Corporations. Corporations shall pay estimated income tax in accordance with 26 U.S.C. § 6655 except: The provisions of 26 U.S.C. § 6655(g)(1)(A)(ii) through (iv) shall not apply. (b) For the purposes of this section: (1) Section 40-18-2 shall be substituted when 26 U.S.C. § …

Any individual may elect to file a “short form” return provided by the Department of Revenue and pay any tax due; provided, that the individual does not have income from sources other than wages except for interest and dividend income of not more than $1,500. Items allowed on the…

Repealed by Act 2010-568, effective with tax years beginning December 31, 2009. (Acts 1955, No. 289, p. 661, §13; Acts 1983, No. 83-741, p. 1214, §3; Acts 1993, 1st Ex. Sess., No. 93-852, p. 95, §6; Act 2001-1088, 4th Sp. Sess., p. 1095, §5.)

Repealed by Act 2010-568, effective with tax years beginning December 31, 2009. (Acts 1955, No. 289, p. 661, §14; Acts 1983, No. 83-741, p. 1214, §4; Act 2001-1088, 4th Sp. Sess., p. 1095, §5.)

Repealed by Act 2010-568, effective with tax years beginning December 31, 2009. (Acts 1983, No. 83-741, p. 1214, §5.)

Repealed by Act 2010-568, effective with tax years beginning December 31, 2009. (Acts 1955, No. 289, p. 661, §17.)

(a) As used in this section, the term nonresident of Alabama shall include individuals, trusts, partnerships, corporations, and unincorporated organizations. Any seller or transferor who meets all of the following conditions and who provides the buyer or transferee with an affida…

As used in this division, the following terms shall have the following meanings, respectively, unless the context clearly indicates otherwise: (1) PERSON. Individuals, firms, partnerships, companies, corporations, associations, trustees, receivers, the State of Alabama, and any o…

(a) Each person making any payment of proceeds from a wager which constitutes “winnings subject to withholding” as defined by Section 40-18-90, shall deduct and withhold income tax in the amount of five percent of the payment. (b) Each person making withholding of state income ta…

For the purposes of this article, the following terms shall have the following meanings: (1) CLAIMANT AGENCY. Any of the following: a. The Alabama Commission on Higher Education with respect to the collection of debts under either of the following: 1. The Alabama Student Grant Pr…

The collection remedy authorized by this article is in addition to and not in substitution for any other remedy available by law. (Acts 1981, No. 81-696, p. 1168, §1.)

(a) A claimant agency may submit debts in excess of $25 to the department for collection through setoff, under the procedure established by this article, except in cases where the validity of the debt is legitimately in dispute, an alternate means of collection is pending and bel…

(a) A county or municipality may submit a debt of at least $25 owed to it for collection under this chapter. Provided, however, that a county or municipality must submit the debt to the department through one of the following: (1) The Association of County Commissions of Alabama …

(a) When the claimant agency receives a protest or application in writing from a taxpayer within 30 days of the notice issued by the department pursuant to subsection (c) of Section 40-18-103, the claimant agency shall set a date to hear the protest and give notice to the taxpaye…

(a) Upon final determination of the amount of the debt due and owing by means of a hearing provided by Section 40-18-104 or by the taxpayer’s default through failure to comply with Section 40-18-103 mandating timely request for review, the claimant agency shall remove the amount …

The department has priority over every claimant agency for collection by setoff under this article. (Acts 1981, No. 81-696, p. 1168, §1.)

(a) Notwithstanding any confidentiality statute, the Commissioner of Revenue may provide to a claimant agency all information necessary to accomplish and effectuate the intent of this article. (b) The information obtained by a claimant agency from the department in accordance wit…

When the setoff authorized by this article is exercised, the refund which is set off shall be deemed granted. (Acts 1981, No. 81-696, p. 1168, §1.)

In those cases where the amount claimed to be due and owing by the claimant agency is less than the refund due the taxpayer the State Treasurer is authorized upon the request of the department to issue two warrants, one payable to the claimant agency for the amount claimed to be …

(a) The fee charged to the department by the United States Department of the Treasury to intercept a federal income tax refund and forward it to the department to pay any unpaid Alabama tax liability that is eligible to be submitted to the United States Department of the Treasury…

(a) As used in this article, the following terms have the following meanings: (1) MANUFACTURED HOME. Any structure built to the Manufactured Home Construction and Safety Standards which displays a red certification label on the exterior of each transportable section. (2) PRIMARY …

It is the intent of the Legislature to institute programs that will make Alabama more competitive with other states in the recruitment and retention of physicians and reduce inequities that a small or rural hospital and small or rural communities have in the funding and recruitme…

For the purposes of this article, the following words have the following meanings, respectively, unless the context clearly indicates otherwise: (1) RURAL PHYSICIAN. A physician licensed to practice medicine in Alabama who practices and resides in a small or rural community and h…

Beginning with the 1994 tax year, a person qualifying as a rural physician shall be allowed a credit against the tax imposed by Section 40-18-2, in the sum of $5,000. No credit shall be allowed to a rural physician who is, on May 4, 1993, practicing in a small or rural community.…

(a) The Rural Physician Tax Credit, Article 4A, commencing with Section 40-18-130, Chapter 18, of Title 40, is repealed effective December 31, 2028, unless extended by an act of the Legislature prior to that date for no more than five additional years.(b) The repealing of the inc…

The following definitions apply to this article: (1) APPROVED BASIC SKILLS EDUCATION PROGRAM. A basic skills education program that has received written approval from the Alabama Department of Education pursuant to this article. (2) BASIC SKILLS EDUCATION PROGRAM. An approved emp…

Beginning with tax year 1993, a tax credit of 20 percent of the actual costs of education shall be provided to an employer who provides or sponsors an approved basic skills education program pursuant to this article. (Acts 1993, 1st Ex. Sess., No. 93-907, p. 204, §2.)

The tax credit available to an employer pursuant to this article shall be limited to the amount of the employer’s income tax liability for the taxable year as computed without regard to this article. (Acts 1993, 1st Ex. Sess., No. 93-907, p. 204, §3.)

The Alabama Department of Education shall promulgate and adopt rules regarding the methods, procedures, and standards it deems necessary for approving employer provided or employer sponsored basic skills education programs. The Department of Education shall include in its rules a…

No tax credit shall be granted pursuant to this article to any employer of an employee participating in a basic skills education program if the employer receives or requires reimbursement or any form of remuneration for any cost of the education. (Acts 1993, 1st Ex. Sess., No. 93…

(a)(1) Each Alabama resident individual income taxpayer desiring to contribute to any of the programs listed in subsection (b) may designate an amount of his or her refund, rounded off in whole dollars, in an appropriate box on the state income tax return form, to be credited to …

Repealed by Act 2006-503, p. 1145, §2, effective for tax years beginning after December 31, 2005. (Acts 1982, No. 82-385, p. 562, §2.)

Repealed by Act 2006-503, p. 1145, §2, effective for tax years beginning after December 31, 2005. (Acts 1982, No. 82-424, p. 666, §1.)

Repealed by Act 2006-503, p. 1145, §2, effective for tax years beginning after December 31, 2005. (Acts 1982, No. 82-424, p. 666, §2.)

Repealed by Act 2006-503, p. 1145, §2, effective for tax years beginning after December 31, 2005. (Acts 1982, No. 82-424, p. 666, §3.)