Shares Tax. [Repealed]

Ala. Code tit. 40, ch. 14A, art. 3

in effect

Ala. Code § 40-14A-31 (Repealed for Taxable Years Beginning on or After January 1, 2002.) Levy of Tax.

40-14A-31. (Repealed for Taxable Years Beginning on or After January 1, 2002.) Levy of Tax. (a) There is hereby levied an annual shares tax on all corporations incorporated or organized under the laws of Alabama, qualifying or registering to do business, or doing business in Alabama, unless otherwise exempted in this article; provided that all assets and other items of a disregarded entity shall be taken into account in determining the shares tax base of its owner and the disregarded entity shall not be subject to the tax levied by this article. The tax shall accrue as of January 1, 2000, and on January 1 of every taxable year thereafter, or in the case of a taxpayer incorporated or organized during the year, qualifying to do business during the year, or beginning to do business in Alabama for the first time during the year, as of the date the taxpayer incorporated, organized, qualifies, or begins to do business in Alabama, as the case may be. Except as provided in the following sentence, the tax levied by this article for taxable years beginning on or after January 1, 2000, shall be levied at the rate of $5.30 per $1,000 of the taxable shares base and shall not be less than $0 nor exceed $500,000 for any taxpayer. The amount of tax levied by this section for the taxable year beginning January 1, 2001, shall be levied at the rate of $1.33 per $1,000 of the taxable shares base and shall not exceed $125,000 for any taxpayer. (b) If any taxpayer’s first taxable year is less than 12 months because the taxpayer is organized or incorporated during the taxable year, or if any foreign corporation qualifies or registers or if the taxpayer begins to do business in this state during the taxable year, the amount of the tax levied by this article shall be determined in the manner specified in this article but apportioned to the short taxable year in the same proportion as the number of days in the short taxable year bears to 365, but in no event more than $500,000. (Act 99-665, 2nd Sp. Sess., p. 131, §2; Act 2000-705, p. 1442, §2; repealed by Act 2000-705, §12.)

Ala. Code § 40-14A-32 (Repealed for Taxable Years Beginning on or After January 1, 2002.) Exemptions.

40-14A-32. (Repealed for Taxable Years Beginning on or After January 1, 2002.) Exemptions. The tax levied by this article shall not apply to: (1) Financial institutions, as defined in Section 40-16-1, that are subject to the provisions of Chapter 16 as to the excise taxes levied on financial institutions; (2) Insurance companies that are subject to the premium taxes levied by Chapter 4A of Title 27; (3) Corporations, limited liability entities, companies, or associations whose property is assessed for taxation pursuant to the provisions of Chapter 21 and are also obligated to serve the general public; (4) Real estate investment trusts as defined in Chapter 13 of Title 10; and (5) Any corporation organized as a not-for-profit corporation that does not engage in any business other than holding title to property and paying the expenses thereof, including, without limitation, a property owner’s association or a corporation organized solely to hold title to property on a temporary basis. (Act 99-665, 2nd Sp. Sess., p. 131, §2; Act 2000-705, p. 1442, §2; repealed by Act 2000-705, §12.)

Ala. Code § 40-14A-33 (Repealed for Taxable Years Beginning on or After January 1, 2002.) Definition of Initial Taxable Shares Base.

40-14A-33. (Repealed for Taxable Years Beginning on or After January 1, 2002.) Definition of Initial Taxable Shares Base. (a) Determine the sum of the following as of the first day of the corporation’s taxable year: (1) The outstanding capital stock and any additional paid-in capital, but without reduction for treasury stock; and (2) Retained earnings, but not less than zero, which shall include any amounts designated for the payment of dividends until the amounts are definitely and irrevocably placed to the credit of stockholders subject to withdrawal on demand. (b) From the amount determined under subsection (a), deduct: (1) The book value of goods, wares, and merchandise held for sale; (2) The book value of the investment by the taxpayer in the equity of other corporations doing business in Alabama. This subdivision shall not apply if the taxpayer is a dealer in securities subject to 26 U.S.C. §1236. (3) Federal obligations. a. For a taxpayer who does not hold federal obligations for a tax avoidance purpose, the book value of federal obligations owned by the taxpayer multiplied by a fraction, the numerator of which is the amount determined in subsection (a) and the denominator of which is the sum of the amount determined in subsection (a) and the amount of the taxpayer’s debts maturing in more than one year. b. For a taxpayer that does hold federal obligations for a tax avoidance purpose, an amount determined in accordance with paragraph a. multiplied by a fraction, the numerator of which is the average amount of federal obligations owned during the taxable year and the denominator of which is the average amount of the taxpayer’s total assets during the taxable year, both determined on a monthly basis. c. A taxpayer shall be deemed to hold federal obligations for a tax avoidance purpose if more than 50 percent by value of the taxpayer’s federal obligations are purchased within a period beginning 45 days before the end of the determination period and are sold within a period ending 45 days after the end of the determination period. d. A taxpayer may be found to hold federal obligations for a tax avoidance purpose even if such tax avoidance purpose is not deemed to exist by virtue of paragraph c. (4) The unamortized balance of any amount that the taxpayer properly elected, pursuant to Pronouncement 106 of the Financial Accounting Standards Board or any successor authority, to amortize over a period of years rather than immediately charging that amount to earnings. (5) For all industrial development board assets that the corporation was entitled to use pursuant to a lease or other agreement entered into before May 21, 1992, or would be entitled to use at some future time pursuant to an inducement entered into with the industrial development board before May 21, 1992, as provided in Section 40-9B-7(c) (if and to the extent that the corporation includes such industrial development board assets on its balance sheet), the corporation shall file with its shares tax return a separate schedule itemizing the book value of its industrial development board assets and the book value of its industrial development board liabilities. The net balance sheet value of such separately scheduled industrial development board assets and industrial development board liabilities shall be excluded from the calculation of the shares tax if such assets are included in the calculation of net worth under Article 2; provided however, this exclusion shall not exceed $200,000 per determination period. (c) Nothing in this section shall be construed to allow any item to be deducted more than once or to allow a deduction for any item that is excluded from the initial taxable shares base. (Act 99-665, 2nd Sp. Sess., p. 131, §2; Act 2000-705, p. 1442, §2; repealed by Act 2000-705, §12.)

Ala. Code § 40-14A-34 (Repealed for Taxable Years Beginning on or After January 1, 2002.) Definition of Taxable Shares Base.

40-14A-34. (Repealed for Taxable Years Beginning on or After January 1, 2002.) Definition of Taxable Shares Base. The taxable shares base shall be determined as follows: (a) Multiply the corporation’s initial taxable shares base by the apportionment factor used to apportion the corporation’s income to Alabama for purposes of the Alabama income tax in accordance with Chapter 18 or that would be used if the corporation were subject to income tax under Chapter 18. (b) From the amount determined in subsection (a), deduct the following: (1) The book value of all devices, facilities, or structures, and all identifiable components or materials for use therein, that are located in Alabama and are acquired or constructed primarily for the control, reduction, or elimination of air, ground, or water pollution or radiological hazards where such pollution or radiological hazards result from or would be caused by activities of the taxpayer in Alabama; (2) The net amount invested by the taxpayer in any bond or other security issued before January 1, 2000, by the State of Alabama, or any county, municipality, or other political subdivision of the State of Alabama, or any public corporation agency or instrumentality of the foregoing but only until the year in which occurs the earlier of the final maturity date thereof or the date on which the principal of the bond or security shall be called for optional redemption prior to the final maturity thereof. For purposes of this subdivision, “net amount invested” means the amount of cash, including any premium and net of any discount, paid as the purchase price for the bond or other security, less the amount of any premium amortized and plus the amount of any discount accreted to the date of calculation, reduced by the proportionate amount of principal on the bond or other security that is amortized or otherwise paid or retired. This subdivision shall not apply if the taxpayer is a dealer in securities subject to the rules of 26 U.S.C. §1236; (3) The balance of any reserve, account, or trust reasonably determined to satisfy any liability that is imposed by federal, state, or local government laws or regulations for reclamation, storage, disposal, decontamination, retirement, or other related costs associated with a plant, facility, mine, or site in Alabama; (4) During the period beginning December 1, 1997, and ending on the date 20 years thereafter, the amount invested in all new and existing manufacturing facilities in this state by the taxpayer, which amount shall be limited to the investment in all real and tangible personal property, equipment, facilities, structures, components, and inventory in this state, provided that the taxpayer has met the criteria in paragraph a. below, and, in addition, has met the criteria in paragraph b. below: a. The taxpayer must, not later than December 31, 2000, file with the department a statement of intent to claim the deduction provided under this section. This statement of intent shall contain any information required by the department. b. During the period commencing with December 1, 1997, and ending on the date six years thereafter, the amount of new investment in all new and existing manufacturing facilities in this state by the taxpayer and, in addition, the number of new employees at all new and existing manufacturing facilities in this state shall meet or exceed the limits described in one of the following brackets: Amount Invested | Number of New Employees Not less than $1,000,000,000 | Not less than 500 Not less than $900,000,000 | Not less than 600 Not less than $800,000,000 | Not less than 700 Not less than $700,000,000 | Not less than 800 Not less than $600,000,000 | Not less than 900 Not less than $100,000,000 | Not less than 1,000 No deduction shall be available under this subdivision (4) until the criteria defined in paragraph a. above, and, in addition, paragraph b. above have been met. The deduction available under this subdivision (4) shall only be available during those years within the 20 years after December 1, 1997, in which the taxpayer maintains the criteria defined in paragraph b. above. (5) The amount invested by the taxpayer in the purchase of an existing manufacturing facility in this state, which amount shall be limited to the investment in all real and tangible personal property, equipment, facilities, structures, components, and inventory on or after January 1, 1998, and during the period for 20 years thereafter, provided that the taxpayer has met the criteria in paragraphs a., b., and c. a. The taxpayer must, within six months of February 19, 1998, file with the department a statement of intent to claim the deduction provided pursuant to this subdivision (5). The statement of intent shall contain any information required by the department. b. At the time of purchase, the existing manufacturing facility must have at least 1,000 employees, which employment level must be maintained during the period 20 years after the date of acquisition by the taxpayer. c. At the time of purchase, the existing manufacturing facility must produce aluminum alloy can stock. (6) At the election of the taxpayer, a. The market value, or current use value if applicable, of the real property as last determined by the county assessing official on which the taxpayer is subject to the tax levied by Chapter 8, or, b. The book value of the real property. (7) The book value of personal property subject to the tax levied by Chapter 8. (8) In the case of an Alabama S corporation, an amount equal to 30 percent of the corporation’s taxable income, or, if greater, the amount that would have been the corporation’s income tax liability if it were subject to income tax, computed according to the same method used to determine the amounts required to be included in the shareholders’ incomes and in accordance with generally accepted accounting principles. (c) Nothing in this section shall be construed to allow any item to be deducted more than once or to allow a deduction for any item that is excluded from the initial taxable shares base. (Act 99-665, 2nd Sp. Sess., p. 131, §2; Act 2000-705, p. 1442, §2; repealed by Act 2000-705, §12.)

Ala. Code § 40-14A-35 (Repealed for Taxable Years Beginning on or After January 1, 2002.) Filing of Returns.

40-14A-35. (Repealed for Taxable Years Beginning on or After January 1, 2002.) Filing of Returns. (a) Every corporation organized, incorporated, qualified, or registered under Alabama law or doing business in Alabama as of the first day of a calendar year shall file a return with the department. The return is due not later than March 15 of each year or, in the case of a taxpayer not in existence, not qualifying to do business, or not doing business in Alabama on January 1 of the taxable year, two and one-half months after the taxpayer either comes into existence, qualifies or registers to do business, or commences doing business in Alabama. In cases where receivers, trustees in bankruptcy, or assignees are operating the property or business of taxpayers, those receivers, trustees, or assignees shall file returns for the taxpayers in the same manner and form as the taxpayers are required to file returns. Any tax due on the basis of returns filed by receivers, trustees, or assignees shall be collected in the same manner as if collected from the taxpayers for whose business or property they have custody and control. The department may grant a reasonable extension of time for filing returns under rules and regulations prescribed by the department. No extension shall be for more than six months. (b) The shares tax provided in this article shall be reported on forms and in the manner as prescribed by the department. The failure to receive a form from the department shall not relieve a taxpayer from liability for any tax, penalty, or interest otherwise due. The tax due, as reported, shall constitute an admitted liability for that amount. The department may compute and assess additional tax, penalty, and interest against a taxpayer as provided in Chapter 2A. Interest on overpayments of shares tax will be computed and paid in the manner provided in Section 40-1-44(b)(1)b. (c) A corporation that is a member of an Alabama affiliated group that has elected to file a consolidated return pursuant to Section 40-18-39, if it is subject to the shares tax imposed by this article, shall file a separate return reporting and paying the tax as provided in this article without regard to other members of the affiliated group. (Act 99-665, 2nd Sp. Sess., p. 131, §2; Act 2000-705, p. 1442, §2; repealed by Act 2000-705, §12.)

Ala. Code § 40-14A-36 (Repealed for Taxable Years Beginning on or After January 1, 2002.) Remittance and Disposition of Tax.

40-14A-36. (Repealed for Taxable Years Beginning on or After January 1, 2002.) Remittance and Disposition of Tax. The tax levied by this article shall be due at the same time the return is due. Remittance of the shares tax required by the above sections shall be made to the department at Montgomery, Alabama, for deposit to the State Treasurer of Alabama. In addition to all other appropriations heretofore or hereinafter made, there is hereby appropriated to the department for the fiscal year ending September 30, 2000, such amount as is reasonably required to offset its conversion costs as a first charge against the revenues from the tax levied by this article. For all subsequent years, there shall be appropriated to the department as a first charge against the revenues from the tax levied by this article an amount that will offset its actual costs in the administration and regulation of this tax. The balance of the shares tax collected shall be distributed each fiscal year to the State General Fund. (Act 99-665, 2nd Sp. Sess., p. 131, §2; Act 2000-705, p. 1442, §2; repealed by Act 2000-705, §12.)

Ala. Code § 40-14A-37 (Repealed for Taxable Years Beginning on or After January 1, 2002.) Dissolution, Etc., of Corporations.

40-14A-37. (Repealed for Taxable Years Beginning on or After January 1, 2002.) Dissolution, Etc., of Corporations. Whenever a corporation organized or incorporated under the laws of this state is dissolved, terminated, liquidated, or otherwise wound-up, by an agreement of the stockholders filed in the office of the judge of probate of the county wherein the corporation was organized, the judge of probate shall at once give notice to the department and Secretary of State of the dissolution event, with name of the taxpayer and the date of dissolution, termination, liquidation, or other winding-up. When a dissolution of a corporation organized or incorporated under the laws of this state takes place by judgment of a court, upon the filing of a complaint under the laws of this state by the creditors, stockholders, or others, the clerk of the court shall at once notify the department and Secretary of State of such dissolution, termination, liquidation, or other winding up. In any cases where petitions are filed in any court by the creditors, stockholders, or others for the dissolution, termination, liquidation, or other winding-up of a taxpayer in case of insolvency of the taxpayer, the clerk of the court shall give notice of the civil action to the department so that the department may file a petition in the case in the court for the purpose of collecting any unpaid shares tax owing by the taxpayer. (Act 99-665, 2nd Sp. Sess., p. 131, §2; Act 2000-705, p. 1442, §2; repealed by Act 2000-705, §12.)

Ala. Code § 40-14A-38 (Repealed for Taxable Years Beginning on or After January 1, 2002.) Nonexemption from License or Privilege Tax.

40-14A-38. (Repealed for Taxable Years Beginning on or After January 1, 2002.) Nonexemption from License or Privilege Tax. The payment of the shares tax levied by this article shall not exempt any taxpayer from the payment of any regular license or privilege tax required by law for the engaging in or carrying on any business for which a license or privilege tax is required of individuals, firms, or corporations. (Act 99-665, 2nd Sp. Sess., p. 131, §2; Act 2000-705, p. 1442, §2; repealed by Act 2000-705, §12.)

Source: Alabama Legislature (alison.legislature.state.al.us)URL: https://alison.legislature.state.al.us/code-of-alabamaFetched: 10/20/2026