SB351 Alabama 2011 Session

Summary

Primary Sponsor

Hank Sanders

Democrat

Co-Sponsors

Linda Coleman-MadisonGeorge M. “Marc” KeaheyVivian Davis FiguresJerry L. Fielding

Session

Regular Session 2011

Title

Income tax, taxpayer who is part of unitary business, Revenue Commissioner authorized to require additional information in alternative reporting format, Secs. 40-2A-17, 40-18-1 am'd.

Summary

SB351 would require Alabama taxpayers in a unitary business to file a combined report to determine Alabama taxable income.

What This Bill Does

It defines unitary business and requires unitary groups to use a combined report to compute Alabama income. The combined report must include all unitary members doing business in the U.S. or in OECD-designated tax havens, with Alabama income allocated to the state using a group-wide apportionment formula. The Department of Revenue would issue regulations to implement these rules. It also introduces penalties related to improper contingent fees charged by tax planners or return preparers.

Who It Affects

• Taxpayers in Alabama that are part of a unitary business with multiple entities, who would file a combined Alabama tax return and determine Alabama income based on the group.
• Tax return preparers and tax planners who charge improper contingent fees for tax advice or return preparation, who could face penalties.

Key Provisions

• Defines UNITARY BUSINESS and states Alabama will interpret it broadly.
• Requires unitary business taxpayers to use a combined report to determine Alabama taxable income.
• Includes all unitary members doing business in the United States or in OECD-designated tax havens in the combined report, treated as one group.
• Alabama income is calculated by apportioning the combined group's income to Alabama relative to all sources.
• The Department of Revenue shall issue regulations detailing the combined report calculations and enforcement.
• Penalties related to improper contingent fees for tax planning/advice or tax return preparation.
• Effective date: this act becomes law on the first day of the third month after passage.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation