Alabama 2022 Regular Session

Alabama House Bill HB391 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		1 HB391
2		-	2 217897-3
	2	+	2 217897-2
3	3		3 By Representatives Clouse and Garrett
4	4		4 RFD: Ways and Means General Fund
5	5		5 First Read: 22-FEB-22
6	6
7		-	Page 0 HB391
8		-	1
9		-	2 ENROLLED, An Act,
10		-	3 Relating to the levy and amount of business
11		-	4 privilege tax; to amend Section 40-14A-22, Code of Alabama
12		-	5 1975, to provide for a reduced minimum business privilege tax
13		-	6 of $50 for taxable years beginning after December 31, 2022; to
14		-	7 provide a full exemption from the business privilege tax on
15		-	8 amounts due of $100 or less for taxable years beginning after
16		-	9 December 31, 2023.
17		-	10 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
18		-	11 Section 1. Section 40-14A-22, Code of Alabama 1975,
19		-	12 is amended to read as follows:
20		-	13 "§40-14A-22.
21		-	14 "(a) Levy of tax. There is hereby levied an annual
22		-	15 privilege tax on every corporation, limited liability entity,
23		-	16 and disregarded entity doing business in Alabama, or
24		-	17 organized, incorporated, qualified, or registered under the
25		-	18 laws of Alabama. The tax shall accrue as of January 1 of every
26		-	19 taxable year, or in the case of a taxpayer organized,
27		-	20 incorporated, qualified, or registered during the year, or
28		-	21 doing business in Alabama for the first time, as of the date
29		-	22 the taxpayer is organized, incorporated, registered, or
30		-	23 qualifies to do business, or begins to do business in Alabama,
31		-	24 as the case may be. The taxpayer shall be liable for the tax
32		-	25 levied by this article for each year beginning before the
33		-	Page 1 HB391
34		-	1 taxpayer has been dissolved or otherwise ceased to exist or
35		-	2 has withdrawn or forfeited its qualification to do business in
36		-	3 Alabama. The amount of the tax due shall be determined by
37		-	4 multiplying the taxpayer's net worth in Alabama by the rate
38		-	5 determined in subsection (b).
39		-	6 "(b) Rate of tax. For all taxable years of taxpayers
40		-	7 that begin after December 31, 1999, the rate of tax shall be
41		-	8 as set forth below.
42		-	If taxable9
43		-	10 income of the
44		-	11 taxpayer is:
	7	+	Page 0 1 217897-2:n:02/18/2022:KF/cmg LSA2022-099F
	8	+	2
	9	+	3
	10	+	4
	11	+	5
	12	+	6
	13	+	7
	14	+	8 SYNOPSIS: Under existing law, the minimum business
	15	+	9 privilege tax due for certain corporations,
	16	+	10 business trusts, limited liability entities, and
	17	+	11 disregarded entities is not less than $100.
	18	+	12 This bill reduces the minimum business
	19	+	13 privilege tax of $100 to $50 for the taxable year
	20	+	14 beginning after December 31, 2022.
	21	+	15 This bill also provides for a full exemption
	22	+	16 from the minimum business privilege tax due for
	23	+	17 taxable years beginning after December 31, 2023.
	24	+	18
	25	+	19 A BILL
	26	+	20 TO BE ENTITLED
	27	+	21 AN ACT
	28	+	22
	29	+	23 Relating to the levy and amount of business
	30	+	24 privilege tax; to amend Section 40-14A-22, Code of Alabama
	31	+	25 1975, to provide for a reduced minimum business privilege tax
	32	+	26 of $50 for taxable years beginning after December 31, 2022; to
	33	+	27 provide a full exemption from the business privilege tax on
	34	+	Page 1 1 amounts due of $100 or less for taxable years beginning after
	35	+	2 December 31, 2023.
	36	+	3 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
	37	+	4 Section 1. Section 40-14A-22, Code of Alabama 1975,
	38	+	5 is amended to read as follows:
	39	+	6 "§40-14A-22.
	40	+	7 "(a) Levy of tax. There is hereby levied an annual
	41	+	8 privilege tax on every corporation, limited liability entity,
	42	+	9 and disregarded entity doing business in Alabama, or
	43	+	10 organized, incorporated, qualified, or registered under the
	44	+	11 laws of Alabama. The tax shall accrue as of January 1 of every
	45	+	12 taxable year, or in the case of a taxpayer organized,
	46	+	13 incorporated, qualified, or registered during the year, or
	47	+	14 doing business in Alabama for the first time, as of the date
	48	+	15 the taxpayer is organized, incorporated, registered, or
	49	+	16 qualifies to do business, or begins to do business in Alabama,
	50	+	17 as the case may be. The taxpayer shall be liable for the tax
	51	+	18 levied by this article for each year beginning before the
	52	+	19 taxpayer has been dissolved or otherwise ceased to exist or
	53	+	20 has withdrawn or forfeited its qualification to do business in
	54	+	21 Alabama. The amount of the tax due shall be determined by
	55	+	22 multiplying the taxpayer's net worth in Alabama by the rate
	56	+	23 determined in subsection (b).
	57	+	24 "(b) Rate of tax. For all taxable years of taxpayers
	58	+	25 that begin after December 31, 1999, the rate of tax shall be
	59	+	26 as set forth below.
	60	+	Page 2 If taxable1
	61	+	2 income of the
	62	+	3 taxpayer is:
45	63
46		-	at ~~least12~~ but less
	64	+	at least4 but less
47	65		than
48	66		The tax rate
49	67		shall be
50		-	13 $1 $0.25 per
	68	+	5 $1 $0.25 per
51	69		$1,000
52		-	$~~114~~ $200,000 $1.00 per
	70	+	$16 $200,000 $1.00 per
53	71		$1,000
54		-	$200,~~00015~~ $500,000 $1.25 per
	72	+	$200,0007 $500,000 $1.25 per
55	73		$1,000
56		-	$500,~~00016~~ $2,500,000 $1.50 per
	74	+	$500,0008 $2,500,000 $1.50 per
57	75		$1,000
58		-	$2,500,~~00017~~ $1.75 per
	76	+	$2,500,0009 $1.75 per
59	77		$1,000
60		-	Page 2 HB391
61		-	"(c) Minimum tax. (1) Except as provided in1
62		-	2 subsection (f), and subdivisions (c)(2) and (c)(3), the
63		-	3 privilege tax levied by this article on certain corporations,
64		-	4 business trusts, limited liability entities, and disregarded
65		-	5 entities shall not be less than $100.
66		-	6 "(2) For the taxable year beginning after December
67		-	7 31, 2022, taxpayers who would otherwise be subject to the
68		-	8 minimum tax due of $100 provided for in subdivision (c)(1)
69		-	9 shall pay $50 in lieu thereof. This subdivision shall not
70		-	10 apply to those subject to the tax levy provided under Section
71		-	11 2 of Act 2021-450 of the 2021 Regular Session now appearing as
72		-	12 Section 20-2A-80.
73		-	13 "(3) For taxable years beginning after December 31,
74		-	14 2023, taxpayers who would otherwise be subject to the minimum
75		-	15 tax due provided for in subdivisions (c)(1) or (c)(2) shall be
76		-	16 exempt from the privilege tax levied by this article and the
77		-	17 associated filing requirement. This subdivision shall not
78		-	18 apply to those subject to the tax levy provided under Section
79		-	19 2 of Act 2021-450 of the 2021 Regular Session now appearing as
80		-	20 Section 20-2A-80.
81		-	21 "(d) Maximum tax.
82		-	22 "(1) Except as provided in subdivision (2), the
83		-	23 privilege tax levied by this article shall not exceed $15,250
84		-	24 for any taxpayer for the taxable year beginning January 1,
85		-	Page 3 HB391
86		-	1 2000. For each taxable year thereafter, the maximum tax shall
87		-	2 not exceed $15,000 for any taxpayer, except as provided in
88		-	3 subdivision (2).
89		-	4 "(2) With respect to any (i) financial institution
90		-	5 groups as defined in subsection (f)(1); (ii) insurance company
91		-	6 that is subject to the premium taxes levied by Chapter 4A of
92		-	7 Title 27; and (iii) corporation, company, limited liability
93		-	8 entity, or association whose property is assessed for taxation
94		-	9 pursuant to the provisions of Chapter 21 and is obligated to
95		-	10 serve the general public, but is not subject to the Alabama
96		-	11 Corporate Income tax, the privilege tax levied by this article
97		-	12 shall not exceed $3,000,000, for any taxpayer or, for a
98		-	13 financial institution group, for the financial institution
99		-	14 group as a whole each year except as provided in subsection
100		-	15 (e). The privilege tax levied by this article on any electing
101		-	16 family limited liability entity shall not exceed $500.
102		-	17 "The privilege tax levied by this article on any
103		-	18 corporation organized as a not-for-profit corporation that
104		-	19 does not engage in any business other than holding title to
105		-	20 property and paying the expenses thereof, including, without
106		-	21 limitation, a property owners' association or a corporation
107		-	22 organized solely to hold title to property on a temporary
108		-	23 basis, shall not exceed $100.
109		-	24 "(e) Short taxable years. If any taxpayer's taxable
110		-	25 year is less than 12 months because the taxpayer is
111		-	Page 4 HB391
112		-	1 incorporated or organized within the taxable year, or if any
113		-	2 foreign corporation or foreign limited liability entity
114		-	3 qualifies, registers, or begins to do business in this state
115		-	4 within the taxable year or converts to a taxable year other
116		-	5 than the calendar year, the amount of the tax levied by this
117		-	6 article shall be determined in the manner specified in this
118		-	7 article but apportioned to the short taxable year in same
119		-	8 proportion as the number of days in the short taxable year
120		-	9 bears to 365, but in no event less than $100 the amounts as
121		-	10 specified in subsection (c) as applicable nor more than the
122		-	11 applicable amount specified in subsection (d).
123		-	12 "(f) Minimum taxes for financial institution groups.
124		-	13 "(1) For purposes of this subsection, the following
125		-	14 terms shall mean:
126		-	15 "a. Affiliated Group. (i) One or more chains of
127		-	16 corporations or limited liability entities connected through
128		-	17 the ownership of stock or ownership interests with a common
129		-	18 parent which is a corporation or limited liability entity, but
130		-	19 only if the common parent owns directly stock or ownership
131		-	20 interests meeting the requirements of item (ii) in at least
132		-	21 one of the other corporations or limited liability entities,
133		-	22 and only if stock or ownership interests meeting the
134		-	23 requirements of item (ii) in each of the corporations or
135		-	24 limited liability entities (except the common parent) is owned
136		-	25 directly by one or more of the other corporations or limited
137		-	Page 5 HB391
138		-	1 liability entities. (ii) The ownership of stock or ownership
139		-	2 interests of any corporation or limited liability entity meets
140		-	3 the requirements of this paragraph if it possesses at least 80
141		-	4 percent of the total voting power or capital and profits
142		-	5 interest of the corporation or limited liability entity.
143		-	6 "b. Financial Institution. The meaning given in
144		-	7 Section 40-16-1.
145		-	8 "c. Financial Institution Group. All taxpayers in an
146		-	9 affiliated group where at least one member of the group is a
147		-	10 financial institution that is subject to the provisions of
148		-	11 Chapter 16. In the event a financial institution taxpayer is
149		-	12 not a member of an affiliated group, that financial
150		-	13 institution shall be treated as a financial institution group.
151		-	14 "(2) To the extent that the members of a financial
152		-	15 institution group have different taxable years, the group
153		-	16 shall be deemed, for purposes of the business privilege tax
154		-	17 levied by Article 2, to have a calendar taxable year.
155		-	18 "(3) Taxpayers who are members of a financial
156		-	19 institution group shall complete their business privilege tax
157		-	20 returns without regard to this subsection. Those taxpayers
158		-	21 shall submit their returns together, and the minimum tax
159		-	22 amount provided in subdivision (5) shall apply to the
160		-	23 aggregate business privilege tax liability of the group. To
161		-	24 the extent that the minimum amount provided in subdivision (5)
162		-	25 applies to determine the liability of the group, each taxpayer
163		-	Page 6 HB391
164		-	1 which is a member of the group shall be liable for that
165		-	2 portion of the group liability which is equal to the amount
166		-	3 multiplied by the ratio of the taxpayer's liability without
167		-	4 regard to this subsection over the liability of the group
168		-	5 without regard to this subsection. Upon the annual election of
169		-	6 the common parent, a financial institution group may file a
170		-	7 single return, executed by the common parent of that financial
171		-	8 institution group. The return shall be completed as if the
172		-	9 financial institution group were a single taxpayer. Each
173		-	10 member of the financial institution group shall be jointly and
174		-	11 severally liable for the group's business privilege tax and
175		-	12 corporate shares tax liabilities.
176		-	13 "(4) The tax returns for all members of a financial
177		-	14 institution group shall be due no later than the corresponding
178		-	15 Alabama financial institution excise tax return due date.
179		-	16 Extensions for filing these returns shall not be granted for
180		-	17 more than six months.
181		-	18 "(5) For taxable years beginning on or after January
182		-	19 1, 2000, the minimum aggregate business privilege tax levied
183		-	20 by Article 2 on all members of a financial institution group
184		-	21 shall be:
185		-	22 "a. For financial institutions with total deposits
186		-	23 inside Alabama of less than one billion dollars
187		-	24 ($1,000,000,000) within that financial institution group, as
188		-	25 reported to the FDIC, OTS, or the NCUSIF as of June 30 of the
189		-	Page 7 HB391
190		-	1 immediately preceding taxable year, the tax rate shall be
191		-	2 $.125 per one thousand dollars ($1,000) of such deposits. For
	78	+	"(c) Minimum tax. (1) Except as provided in10
	79	+	11 subsection (f), and subdivisions (c)(2) and (c)(3), the
	80	+	12 privilege tax levied by this article on certain corporations,
	81	+	13 business trusts, limited liability entities, and disregarded
	82	+	14 entities shall not be less than $100.
	83	+	15 "(2) For the taxable year beginning after December
	84	+	16 31, 2022, taxpayers who would otherwise be subject to the
	85	+	17 minimum tax due of $100 provided for in subdivision (c)(1)
	86	+	18 shall pay $50 in lieu thereof. This subdivision shall not
	87	+	Page 3 1 apply to those subject to the tax levy provided under Section
	88	+	2 2 of Act 2021-450 of the 2021 Regular Session now appearing as
	89	+	3 Section 20-2A-80.
	90	+	4 "(3) For taxable years beginning after December 31,
	91	+	5 2023, taxpayers who would otherwise be subject to the minimum
	92	+	6 tax due provided for in subdivisions (c)(1) or (c)(2) shall be
	93	+	7 exempt from the privilege tax levied by this article and the
	94	+	8 associated filing requirement. This subdivision shall not
	95	+	9 apply to those subject to the tax levy provided under Section
	96	+	10 2 of Act 2021-450 of the 2021 Regular Session now appearing as
	97	+	11 Section 20-2A-80.
	98	+	12 "(d) Maximum tax.
	99	+	13 "(1) Except as provided in subdivision (2), the
	100	+	14 privilege tax levied by this article shall not exceed $15,250
	101	+	15 for any taxpayer for the taxable year beginning January 1,
	102	+	16 2000. For each taxable year thereafter, the maximum tax shall
	103	+	17 not exceed $15,000 for any taxpayer, except as provided in
	104	+	18 subdivision (2).
	105	+	19 "(2) With respect to any (i) financial institution
	106	+	20 groups as defined in subsection (f)(1); (ii) insurance company
	107	+	21 that is subject to the premium taxes levied by Chapter 4A of
	108	+	22 Title 27; and (iii) corporation, company, limited liability
	109	+	23 entity, or association whose property is assessed for taxation
	110	+	24 pursuant to the provisions of Chapter 21 and is obligated to
	111	+	25 serve the general public, but is not subject to the Alabama
	112	+	26 Corporate Income tax, the privilege tax levied by this article
	113	+	27 shall not exceed $3,000,000, for any taxpayer or, for a
	114	+	Page 4 1 financial institution group, for the financial institution
	115	+	2 group as a whole each year except as provided in subsection
	116	+	3 (e). The privilege tax levied by this article on any electing
	117	+	4 family limited liability entity shall not exceed $500.
	118	+	5 "The privilege tax levied by this article on any
	119	+	6 corporation organized as a not-for-profit corporation that
	120	+	7 does not engage in any business other than holding title to
	121	+	8 property and paying the expenses thereof, including, without
	122	+	9 limitation, a property owners' association or a corporation
	123	+	10 organized solely to hold title to property on a temporary
	124	+	11 basis, shall not exceed $100.
	125	+	12 "(e) Short taxable years. If any taxpayer's taxable
	126	+	13 year is less than 12 months because the taxpayer is
	127	+	14 incorporated or organized within the taxable year, or if any
	128	+	15 foreign corporation or foreign limited liability entity
	129	+	16 qualifies, registers, or begins to do business in this state
	130	+	17 within the taxable year or converts to a taxable year other
	131	+	18 than the calendar year, the amount of the tax levied by this
	132	+	19 article shall be determined in the manner specified in this
	133	+	20 article but apportioned to the short taxable year in same
	134	+	21 proportion as the number of days in the short taxable year
	135	+	22 bears to 365, but in no event less than $100 the amounts as
	136	+	23 specified in subsection (c) as applicable nor more than the
	137	+	24 applicable amount specified in subsection (d).
	138	+	25 "(f) Minimum taxes for financial institution groups.
	139	+	26 "(1) For purposes of this subsection, the following
	140	+	27 terms shall mean:
	141	+	Page 5 1 "a. Affiliated Group. (i) One or more chains of
	142	+	2 corporations or limited liability entities connected through
	143	+	3 the ownership of stock or ownership interests with a common
	144	+	4 parent which is a corporation or limited liability entity, but
	145	+	5 only if the common parent owns directly stock or ownership
	146	+	6 interests meeting the requirements of item (ii) in at least
	147	+	7 one of the other corporations or limited liability entities,
	148	+	8 and only if stock or ownership interests meeting the
	149	+	9 requirements of item (ii) in each of the corporations or
	150	+	10 limited liability entities (except the common parent) is owned
	151	+	11 directly by one or more of the other corporations or limited
	152	+	12 liability entities. (ii) The ownership of stock or ownership
	153	+	13 interests of any corporation or limited liability entity meets
	154	+	14 the requirements of this paragraph if it possesses at least 80
	155	+	15 percent of the total voting power or capital and profits
	156	+	16 interest of the corporation or limited liability entity.
	157	+	17 "b. Financial Institution. The meaning given in
	158	+	18 Section 40-16-1.
	159	+	19 "c. Financial Institution Group. All taxpayers in an
	160	+	20 affiliated group where at least one member of the group is a
	161	+	21 financial institution that is subject to the provisions of
	162	+	22 Chapter 16. In the event a financial institution taxpayer is
	163	+	23 not a member of an affiliated group, that financial
	164	+	24 institution shall be treated as a financial institution group.
	165	+	25 "(2) To the extent that the members of a financial
	166	+	26 institution group have different taxable years, the group
	167	+	Page 6 1 shall be deemed, for purposes of the business privilege tax
	168	+	2 levied by Article 2, to have a calendar taxable year.
	169	+	3 "(3) Taxpayers who are members of a financial
	170	+	4 institution group shall complete their business privilege tax
	171	+	5 returns without regard to this subsection. Those taxpayers
	172	+	6 shall submit their returns together, and the minimum tax
	173	+	7 amount provided in subdivision (5) shall apply to the
	174	+	8 aggregate business privilege tax liability of the group. To
	175	+	9 the extent that the minimum amount provided in subdivision (5)
	176	+	10 applies to determine the liability of the group, each taxpayer
	177	+	11 which is a member of the group shall be liable for that
	178	+	12 portion of the group liability which is equal to the amount
	179	+	13 multiplied by the ratio of the taxpayer's liability without
	180	+	14 regard to this subsection over the liability of the group
	181	+	15 without regard to this subsection. Upon the annual election of
	182	+	16 the common parent, a financial institution group may file a
	183	+	17 single return, executed by the common parent of that financial
	184	+	18 institution group. The return shall be completed as if the
	185	+	19 financial institution group were a single taxpayer. Each
	186	+	20 member of the financial institution group shall be jointly and
	187	+	21 severally liable for the group's business privilege tax and
	188	+	22 corporate shares tax liabilities.
	189	+	23 "(4) The tax returns for all members of a financial
	190	+	24 institution group shall be due no later than the corresponding
	191	+	25 Alabama financial institution excise tax return due date.
	192	+	26 Extensions for filing these returns shall not be granted for
	193	+	27 more than six months.
	194	+	Page 7 1 "(5) For taxable years beginning on or after January
	195	+	2 1, 2000, the minimum aggregate business privilege tax levied
	196	+	3 by Article 2 on all members of a financial institution group
	197	+	4 shall be:
	198	+	5 "a. For financial institutions with total deposits
	199	+	6 inside Alabama of less than one billion dollars
	200	+	7 ($1,000,000,000) within that financial institution group, as
	201	+	8 reported to the FDIC, OTS, or the NCUSIF as of June 30 of the
	202	+	9 immediately preceding taxable year, the tax rate shall be
	203	+	10 $.125 per one thousand dollars ($1,000) of such deposits. For
	204	+	11 deposit rate purposes for all future periods, the deposits
	205	+	12 shall in no event be less than the deposits listed as of June
	206	+	13 30, 1999.
	207	+	14 "b. For financial institutions with total deposits
	208	+	15 inside Alabama of one billion dollars ($1,000,000,000) or
	209	+	16 greater up to and including six billion dollars
	210	+	17 ($6,000,000,000) within that financial institution group, as
	211	+	18 reported to the FDIC, OTS, or the NCUSIF as of June 30 of the
	212	+	19 immediately preceding taxable year, the tax rate shall be $.17
	213	+	20 per one thousand dollars ($1,000) of such deposits. For
	214	+	21 deposit rate purposes for all future periods, the deposits
	215	+	22 shall in no event be less than the deposits listed as of June
	216	+	23 30, 1999.
	217	+	24 "c. For financial institutions with total deposits
	218	+	25 inside Alabama greater than six billion dollars
	219	+	26 ($6,000,000,000) within that financial institution group, as
	220	+	27 reported to the FDIC, OTS, or the NCUSIF as of June 30 of the
	221	+	Page 8 1 immediately preceding taxable year, the tax rate shall be
	222	+	2 $.225 per one thousand dollars ($1,000) of such deposits. For
192	223		3 deposit rate purposes for all future periods, the deposits
193	224		4 shall in no event be less than the deposits listed as of June
194	225		5 30, 1999.
195		-	6 "b. For financial institutions with total deposits
196		-	7 inside Alabama of one billion dollars ($1,000,000,000) or
197		-	8 greater up to and including six billion dollars
198		-	9 ($6,000,000,000) within that financial institution group, as
199		-	10 reported to the FDIC, OTS, or the NCUSIF as of June 30 of the
200		-	11 immediately preceding taxable year, the tax rate shall be $.17
201		-	12 per one thousand dollars ($1,000) of such deposits. For
202		-	13 deposit rate purposes for all future periods, the deposits
203		-	14 shall in no event be less than the deposits listed as of June
204		-	15 30, 1999.
205		-	16 "c. For financial institutions with total deposits
206		-	17 inside Alabama greater than six billion dollars
207		-	18 ($6,000,000,000) within that financial institution group, as
208		-	19 reported to the FDIC, OTS, or the NCUSIF as of June 30 of the
209		-	20 immediately preceding taxable year, the tax rate shall be
210		-	21 $.225 per one thousand dollars ($1,000) of such deposits. For
211		-	22 deposit rate purposes for all future periods, the deposits
212		-	23 shall in no event be less than the deposits listed as of June
213		-	24 30, 1999.
214		-	Page 8 HB391
215		-	1 "d. Provided, however, that in the case of a
216		-	2 financial institution group that, as of June 30, 1999, (i) had
217		-	3 total deposits of less than one billion dollars
218		-	4 ($1,000,000,000) and (ii) derived at least a majority of its
219		-	5 deposits, as reported to FDIC, OTS, or NCUSIF, that were
220		-	6 booked to one or more branches or offices located within
221		-	7 Alabama from account holders whose addresses of record on the
222		-	8 books of the financial institution group were outside the
223		-	9 State of Alabama, the phrase "total deposits in Alabama," for
224		-	10 purposes of calculating the minimum aggregate business
225		-	11 privilege tax levied by Article 2 for all taxable years
226		-	12 beginning on and after January 1, 2000, shall only include
227		-	13 deposits of account holders whose addresses of record on the
228		-	14 books of the financial institution group are inside the State
229		-	15 of Alabama.
230		-	16 "e. In the event a financial institution group sells
231		-	17 Alabama deposits to another financial institution group that
232		-	18 reports those deposits in Alabama for purposes of Act
233		-	19 2000-705, those deposits shall not be taxed more than once
234		-	20 pursuant to the provisions of Act 2000-705 in the same taxable
235		-	21 year. The liability for such taxes shall be the responsibility
236		-	22 of the purchaser, and the tax base for the selling group shall
237		-	23 be adjusted accordingly.
238		-	24 "f. In the event an existing financial institution
239		-	25 group reports deposits in any year less than 96.5 percent of
240		-	Page 9 HB391
241		-	1 the deposits reported as of June 30, 1999, the alternative
242		-	2 minimum tax shall be based on the deposits reported as of June
243		-	3 30, 1999. In the event an existing financial institution group
244		-	4 reports deposits in any year more than 96.5 percent of the
245		-	5 deposits reported as of June 30, 1999, the alternative minimum
246		-	6 tax shall be based on the deposits reported for that taxable
247		-	7 year. For financial institutions coming into existence after
248		-	8 June 30, 1999, the deposits upon which the alternative minimum
249		-	9 tax is based shall not be less than the deposits reported the
250		-	10 first full year that financial institution reported deposits
251		-	11 to the FDIC, OTS, or NCUSIF."
252		-	12 Section 2. The Department of Revenue may adopt rules
253		-	13 for the implementation and administration of this act.
254		-	14 Section 3. This act shall become effective on the
255		-	15 first day of the third month following its passage and
256		-	16 approval by the Governor, or its otherwise becoming law.
257		-	Page 10 HB391
258		-	1
259		-	2
260		-	3
261		-	4
262		-	Speaker of the House of Representatives
263		-
264		-	5
265		-	6 President and Presiding Officer of the Senate
266		-	House of Representatives7
267		-	I hereby certify that the within Act originated in8
268		-	9 and was passed by the House 10-MAR-22.
269		-	10
270		-	11 Jeff Woodard
271		-	12 Clerk
272		-	13
273		-	14
274		-	15
275		-	Senate16 31-MAR-22 Passed
276		-	17
277		-	Page 11
	226	+	6 "d. Provided, however, that in the case of a
	227	+	7 financial institution group that, as of June 30, 1999, (i) had
	228	+	8 total deposits of less than one billion dollars
	229	+	9 ($1,000,000,000) and (ii) derived at least a majority of its
	230	+	10 deposits, as reported to FDIC, OTS, or NCUSIF, that were
	231	+	11 booked to one or more branches or offices located within
	232	+	12 Alabama from account holders whose addresses of record on the
	233	+	13 books of the financial institution group were outside the
	234	+	14 State of Alabama, the phrase "total deposits in Alabama," for
	235	+	15 purposes of calculating the minimum aggregate business
	236	+	16 privilege tax levied by Article 2 for all taxable years
	237	+	17 beginning on and after January 1, 2000, shall only include
	238	+	18 deposits of account holders whose addresses of record on the
	239	+	19 books of the financial institution group are inside the State
	240	+	20 of Alabama.
	241	+	21 "e. In the event a financial institution group sells
	242	+	22 Alabama deposits to another financial institution group that
	243	+	23 reports those deposits in Alabama for purposes of Act
	244	+	24 2000-705, those deposits shall not be taxed more than once
	245	+	25 pursuant to the provisions of Act 2000-705 in the same taxable
	246	+	26 year. The liability for such taxes shall be the responsibility
	247	+	Page 9 1 of the purchaser, and the tax base for the selling group shall
	248	+	2 be adjusted accordingly.
	249	+	3 "f. In the event an existing financial institution
	250	+	4 group reports deposits in any year less than 96.5 percent of
	251	+	5 the deposits reported as of June 30, 1999, the alternative
	252	+	6 minimum tax shall be based on the deposits reported as of June
	253	+	7 30, 1999. In the event an existing financial institution group
	254	+	8 reports deposits in any year more than 96.5 percent of the
	255	+	9 deposits reported as of June 30, 1999, the alternative minimum
	256	+	10 tax shall be based on the deposits reported for that taxable
	257	+	11 year. For financial institutions coming into existence after
	258	+	12 June 30, 1999, the deposits upon which the alternative minimum
	259	+	13 tax is based shall not be less than the deposits reported the
	260	+	14 first full year that financial institution reported deposits
	261	+	15 to the FDIC, OTS, or NCUSIF."
	262	+	16 Section 2. The Department of Revenue may adopt rules
	263	+	17 for the implementation and administration of this act.
	264	+	18 Section 3. This act shall become effective on the
	265	+	19 first day of the third month following its passage and
	266	+	20 approval by the Governor, or its otherwise becoming law.
	267	+	Page 10