SB263 Alabama 2016 Session

Summary

Primary Sponsor

Quinton Ross

Democrat

Session

Regular Session 2016

Title

Income tax, individual and corporate returns, date required to be filed, filed on date for corresponding federal returns, Secs. 40-18-27, 40-18-39, 40-18-42 am'd.

Summary

SB263 aligns Alabama's state income tax filing and payment deadlines with federal deadlines and requires payment on the due date.

What This Bill Does

It changes the due dates for Alabama individual and corporate income tax returns to match the federal due dates and requires tax payments to be made on those due dates. It retains federal-style extension rules (up to six months, with a 10-day post-rejection grace period) and ties extensions to federal practices. It takes effect for tax years beginning on or after January 1, 2016.

Who It Affects

• Individual taxpayers in Alabama whose personal income tax returns will be due on the same date as federal returns and with payments due on that date.
• Corporations and other taxable entities in Alabama whose corporate income tax returns will be due on the same date as federal returns and with payments due on that date (including calendar-year and fiscal-year filers and those using Alabama consolidated returns).
• Alabama affiliated groups that elect to file an Alabama consolidated return, including the rules, fees, and joint liability that apply to the group.

Key Provisions

• Returns for individuals and corporations shall be filed by the same date as federal income tax returns for the corresponding year.
• The total tax owed must be paid on the return's due date (the federal-aligned date).
• The Department of Revenue may grant extensions of time to file, up to six months (except for taxpayers abroad), and the extension period remains valid until 10 days after a rejection notice is mailed.
• Effective for tax years beginning January 1, 2016, the changes apply to due dates and payments; the act also clarifies rules for fiscal-year filers and extensions.
• An Alabama consolidated return election is allowed for Alabama affiliated groups, with an annual fee based on total assets and other detailed governance rules; the election is binding for a 120-month period and terminates under certain conditions, with liability and reporting rules for group members specified.
• The law does not require or authorize a unitary (combined) return under the unitary business concept.

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