HB263 Alabama 2017 Session

Summary

Primary Sponsor

Ken Johnson

Republican

Session

Regular Session 2017

Title

Taxation, financial institutions excise tax, formula for apportioning income from business activity inside and outside state, loans and credit cards receivables included as property in this state, Sec. 40-16-4 am'd.

Description

Under existing law, any financial institution that has income from business activity that is taxable both inside of and outside of Alabama must allocate and apportion its income according to the procedure and formula promulgated by administrative rule of the Department of Revenue. For purposes of the financial institution excise tax, the existing administrative rule establishes an apportionment formula based on three equally weighted apportionment factors: property, salaries, and receipts.

This bill would codify the current practice of including loans and credit card receivables as part of the calculation for the property factor of the financial institution excise tax apportionment formula. This bill would specify that the apportionment formula would be applicable to all tax years beginning on or after January 1, 2017.

This bill would specify that the Department of Revenue would promulgate rules consistent with this act.

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Subjects

Taxation