Alabama

On January 17, 2014, TEI submitted a letter in support of Alabama legislation (SB 74) that would establish a pre-payment, independent tribunal to hear appeals of tax assessments and other matters administered by the Alabama Department of Revenue, as well as certain taxes levied by or on behalf of counties and municipalities. TEI has long supported independent state tax tribunals, and the ABA Model Act is consistent with the Institute's Policy Statement on Independent State Tax Tribunals.

On June 10, 2013, TEI submitted comments to the Alabama Department of Revenue on its proposed local sales tax regulation governing seller collection responsibilities. The Institute's letter noted that the proposed regulation would create a more complicated system for determining and complying with sales and use tax obligations in Alabama, and urged the Department to abandon the proposed regulation and retain the existing well-established single nexus threshold for state and local sales taxes.

On February 19 and 20, 2013, TEI submitted letters in support of legislation in Alabama (HB 264 and SB 223) that would establish a pre-payment, independent tribunal to hear appeals of tax assessments and other matters administered by the Alabama Department of Revenue, as well as certain taxes levied by or on behalf of counties and municipalities. TEI has long supported independent state tax tribunals, and the ABA Model Act is consistent with the Institute's Policy Statement on Independent State Tax Tribunals.

On October 26, 2012, TEI filed an amicus brief with the U.S. Supreme Court in a case involving the characterization of income from the sale of assets as apportionable business income versus allocable nonbusiness income for state tax purposes, Kimberly-Clark v. Alabama Department of Revenue. The Institute's brief urged the high court to reverse lower court decisions in Alabama holding that gain from the sale of property used in a taxpayer's unitary business constituted nonbusiness income allocable in full to Alabama.

On February 14, 2012, TEI submitted a letter in support of legislation in Alabama (HB 105) that would establish a pre-payment, independent tribunal to hear appeals of tax assessments and other matters administered by the Alabama Department of Revenue, as well as certain taxes levied by or on behalf of counties and municipalities.

On April 12, 2011, TEI filed a letter urging the Alabama legislature to pass bill establishing a pre-payment, independent tax appeals tribunal but raising concerns with the legislation's proposed "substantial understatement" penalty. TEI's comments were prepared under the aegis of its State and Local Tax Committee, whose chair is Linda Dickens. Daniel B. De Jong, TEI Tax Counsel, serves as legal staff liaison to the committee and coordinated the preparation of the letter.

Download the submission.

On February 23, 2009, TEI filed an amicus brief with the U.S. Supreme Court in VFJ Ventures, Inc. v. Surtees, urging the Court to hear challenges to Alabama's addback statute. Alabama's addback statute denies a deduction for ordinary business expenses paid to related corporations located outside Alabama. TEI's brief argues that the addback statute discriminates against interstate commerce in violation of the Commerce Clause and is unconstitutional.