Excise tax measured by net income of a bank, banking association, trust company, credit card company, building and loan association, industrial or other loan company doing business in Alabama. The Financial Institution Excise tax laws were substantially modified by the enactment of the Financial Institution Reform Act of 2019. This act provides clarity, simplicity, and administrative ease for taxpayers and the department. The act is operative for tax years beginning after December 31, 2019, with limited exceptions.

6.5 percent of taxable income.

50 percent – General Fund

16.7 percent – Counties

33.3 percent – Municipalities

Each municipality shall receive a percentage share of the total municipal financial institution excise tax revenue equal to its average percentage share of the total municipal financial institution revenue distribution over the five years ending in 2018.

The first 20 percent of total county financial institution excise tax revenue shall be distributed equally among all counties. The remaining 80 percent county financial institution excise tax revenue shall be distributed among the counties based on each county’s share of total Alabama population as determined in the most recent federal census prior to the distribution.