Tax Law

Recent Posts

Alabama Tax Tribunal Held that Payments to An Affiliate for Employee Services Not Included in Payroll Factor
Posted on 25 Jun 2020 by Eversheds Sutherland LLP

The Alabama Tax Tribunal held that a taxpayer’s payments to an affiliated entity for employee services were not included in the payroll factor of the apportionment formula for business-income tax purposes because the payments were not made directly to... Read More

Alabama Leaves No One Behind: All Software is Taxable
Posted on 17 Jun 2019 by Eversheds Sutherland LLP

The Alabama Supreme Court ruled that all software, including custom software, is tangible personal property subject to Alabama sales tax. The taxpayer filed refund claims for sales tax paid on computer software and accompanying equipment, claiming that... Read More

Sales of Prepaid Authorization Numbers for Wireless Services Subject to Alabama Sales Tax
Posted on 12 Oct 2018 by Eversheds Sutherland LLP

Reversing a judgment of the circuit court, the Alabama Court of Civil Appeals held that sales of prepaid authorization numbers that allow purchasers to access wireless services on cellular telephones are subject to the state’s sales tax. The court reasoned... Read More

Deference by Alabama Court of Appeals to DOR’s Statutory Interpretation
Posted on 12 Oct 2018 by Eversheds Sutherland LLP

In interpreting an ambiguous statute allowing for a tax credit against the state’s financial institution excise tax (FIET), the Alabama Court of Appeals held in favor of the Department of Revenue’s interpretation. Alabama imposes a 6½% FIET on the net... Read More