Under existing law, a financial institution doing business in Alabama is subject to the Alabama financial institution excise tax. Financial institutions operating in Alabama and other states are required to allocate and apportion their income to Alabama. Existing law provides for annual distributions of the financial institution excise tax to certain counties, municipalities, and the general fund.
This bill establishes the Financial Institution Excise Tax Reform Act of 2019 which updates existing financial institution excise tax statutes to provide clarification and codify the current excise tax procedures. This bill also transitions the financial institution excise tax from a post-payment system to a pre-payment system by imposing estimated financial institution excise tax payments. In addition, an alternate distribution formula is provided for counties and municipalities to transition from yearly to quarterly distributions.
Delivered to Governor at 2:45 p.m. on May 22, 2019.
Assigned Act No. 2019-284.
Clerk of the House Certification
Signature Requested
Enrolled
Passed Second House
Motion to Read a Third Time and Pass adopted Roll Call 957
Third Reading Passed
Read for the second time and placed on the calendar
Engrossed
Read for the first time and referred to the Senate committee on Banking and Insurance
Motion to Read a Third Time and Pass adopted Roll Call 573
Motion to Adopt adopted Roll Call 572
South Amendment Offered
Motion to Adopt adopted Roll Call 571
Ways and Means General Fund Amendment Offered
Third Reading Passed
Read for the second time and placed on the calendar 1 amendment
Read for the first time and referred to the House of Representatives committee on Ways and Means General Fund
Source: Alabama Legislature