SB309 Alabama 2014 Session

Summary

Primary Sponsor

Greg J. Reed

Republican

Co-Sponsor

Rodger Smitherman

Session

Regular Session 2014

Title

Facilitating Business Rapid Response to Declared Disasters Act, provides out-of-state businesses and entities means to establish temporary presence and residency in state for declared emergency in state

Summary

The bill would let out-of-state businesses and employees temporarily establish presence in Alabama to respond to declared disasters, with limited tax and licensing obligations during the disaster period.

What This Bill Does

It creates the Facilitating Business Rapid Response to Declared Disasters Act of 2014 and defines terms like declared disaster, disaster period, and out-of-state entities. During a declared disaster, out-of-state businesses and employees can operate in Alabama to perform disaster-related work without triggering standard residency, income tax withholding, or most state/local tax and licensing requirements for the disaster period. It also outlines how taxes apply to equipment and other transactions, requires reporting to state agencies, and returns to normal rules after the disaster period.

Who It Affects

• Out-of-state businesses entering Alabama solely to perform disaster-related work: not considered to establish residency or state tax presence during the disaster period; may avoid certain state taxes and licensing requirements if they had no prior nexus.
• Out-of-state employees performing disaster-related work in Alabama: not considered to have established residency or state income tax withholding obligations during the disaster period.
• Registered in-state businesses and their affiliates: may need to provide information about out-of-state affiliates to state agencies upon request.
• Businesses with existing Alabama nexus: can conduct disaster-related work without creating additional tax presence beyond their existing nexus during the disaster period; normal rules resume afterward.

Key Provisions

• Establishes the Facilitating Business Rapid Response to Declared Disasters Act of 2014 and defines key terms (declared disaster, disaster period, out-of-state business/employee, registered in-state business, infrastructure, etc.).
• During a declared disaster, allows out-of-state businesses and employees to establish temporary presence/residency in Alabama to perform disaster-related work (infrastructure repair, renovation, installation, etc.).
• Tax treatment during disaster periods: out-of-state employees are not considered residents or subject to income tax withholding; out-of-state businesses with no prior Alabama nexus are not subject to most state/local taxes, licensing, or filing requirements during the disaster period (with exceptions for certain taxes in subsection (d)); existing nexus businesses have no additional presence beyond their current status.
• Transaction taxes apply to equipment and certain other taxes/fees during the disaster period, unless otherwise provided by the act.
• After the disaster periods, normal Alabama presence, residency, licensing, and tax rules apply again (no retroactive effects to the disaster period).
• Reporting requirements: out-of-state businesses must provide a statement to the Secretary of State and Department of Revenue with details about their involvement; in-state registered businesses must provide affiliate information upon request.

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