HB203 Alabama 2013 Session

Summary

Primary Sponsor

Richard Lindsey

Democrat

Session

Regular Session 2013

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, 40-18-39 am'd.

Summary

HB203 would define unitary business and require unitary taxpayers in Alabama to file a combined report to determine Alabama taxable income.

What This Bill Does

It defines unitary business and requires taxpayers that are part of a unitary business to use a combined report to determine their Alabama taxable income. The combined report must include all unitary group members doing business in the United States or domiciled in OECD-designated tax havens, and Alabama income would be apportioned based on the group's overall data. The bill directs the Department of Revenue to issue regulations detailing the combined report calculations and enforcement, and it clarifies that this does not automatically force filing a consolidated Alabama return under a unitary concept. The measure takes effect for tax years beginning after December 31, 2012.

Who It Affects

• Taxpayers that are part of a unitary business (including multiple entities) and do business in Alabama, who would be required to use a combined report to determine Alabama taxable income.
• Alabama Department of Revenue and tax professionals who prepare or advise on Alabama returns, who would implement, regulate, and enforce the new combined reporting rules.

Key Provisions

• Defines unitary business and broadens its interpretation for Alabama income tax purposes.
• Requires taxpayers in a unitary business to use a combined report to determine Alabama taxable income, including all US-based or OECD tax haven–domiciled members, with income apportioned to Alabama based on the combined group's data.
• authorizes the Commissioner of the Department of Revenue to promulgate regulations detailing the combined report calculations and enforcement mechanisms, including rules related to non-arm's-length transactions and potential retroactive denial of consolidation if distortions occur.
• Provides that the new unitary/combined reporting requirements do not by themselves compel filing a consolidated Alabama return under the unitary concept, and sets an effective date for tax years beginning after December 31, 2012.
• Amends 40-18-39 to allow Alabama affiliated groups the option to file an Alabama consolidated return, with an annual fee based on total assets, joint and several liability among members, and related election/termination rules.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation