HB419 Alabama 2019 Session

Sponsors

Session

Regular Session 2019

Title

Taxation, Financial Institution Excise Tax Reform Act of 2019, tax procedure further provided, Secs. 40-16-1, 40-16-3, 40-16-6 am'd.

Description

<p class="bill_description"> 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</p><p class="bill_description"> 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</p><p class="bill_entitled_an_act"> Relating to financial institution excise tax; to establish the Financial Institution Excise Tax Reform Act of 2019; to provide for an estimated payment system; to provide for an alternate distribution formula to pay the counties and municipalities on a quarterly basis as opposed to a yearly basis; to update existing law to provide clarification and reflect current policies and procedures. </p>

Subjects

Taxation