Ala. Admin. Code r. 810-2-8-.02 - Determination Of The Apportionment Factors For The Privilege Tax
(1) For tax years
beginning after December 31, 1999, taxpayers engaged in multistate operations
will determine the Apportionment Factors used to compute Alabama net worth as
follows:
(a) C Corporations, S Corporations,
Limited Liability Entities, Real Estate Investment Trusts, and Disregarded
Entities engaged in multistate operations shall apportion net worth computed
under §
40-14A-23, Code of
Ala. 1975, in accordance with §
40-27-1, Code of Ala.
1975, and the accompanying rules. During the determination period,
the factors used to determine Alabama net worth shall be computed in the same
manner as prescribed for purposes of the income tax levied by Chapter 18, Title
40, Code of Ala. 1975.
(b) Financial Institutions shall apportion
net worth computed under §
40-14A-23 in accordance with
Chapter 16, Title 40, Code of Ala. 1975, and the
accompanying rules. During the determination period, the factors used to
determine Alabama net worth shall be computed in the same manner as prescribed
for purposes of the financial institution excise tax.
(c) Insurance companies subject to the
insurance premium tax levied by Chapter 4A of Title 27, Code of
Ala. 1975, shall apportion income based on the ratio of the
insurer's Alabama premium income to its nationwide total direct premiums. The
information used to determine this ratio is reflected on Schedule T of the
insurer's annual statement filed with the insurance commissioner for the
immediate preceding tax year.
Author: Voncile Catledge
Notes
Statutory Authority: Code of Ala. 1975, §§ 40-2A-7(a)(5), 40-14A-1.
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