HB548 Alabama 2014 Session

Summary

Primary Sponsor

Rod Scott

Democrat

Session

Regular Session 2014

Title

Taxation, factor presence nexus standard based on business activity established for purpose of being subject to income taxation in the state, in state residence or domicile for individuals, businesses organized in state are subject to tax, nonresident individuals and businesses organized out of state that do business in the state are subject to state tax on income, Sec. 40-18-31.27 added

Description

Under existing law, the term nexus is used to describe the amount and degree of business activity that must be present before a state can tax an entity's income. Multi-state taxpayers and the Department of Revenue must make nexus determinations regarding the taxpayer's corporate income tax filing requirements.

Currently, there is nothing codified that provides a "bright line" test when determining nexus.

This bill would establish a factor presence nexus standard for business activity for purposes of income tax.

This bill would provide for the adoption of the Multi-State Tax Commission standard for determination of nexus.

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Subjects

Taxation