Allocation and apportionment rules for financial institutions can be found in rule 810-9-1-.05

Interest income taxable for federal purposes, including interest from loans and discounts, obligations of the United States Government, and State, county, and municipal interest income from loans and securities that is exempt for federal income tax purposes.

Complete and submit the Application for Certificate of Compliance to determine whether or not a corporation is in compliance with Alabama’s filing requirements.

Yes. Alabama Code §40-2A-7(c)(2) states, “A petition for refund shall be filed with the department or an automatic refund issued pursuant to Section 40-29-71, or a credit allowed, within (i) three years from the date that the return was filed, or (ii) two years from the date of payment of the tax, whichever is later, or, if no return was timely filed, two years from the date of payment of the tax.”

The excise tax on financial institutions is levied to give effect to the provisions of federal law limiting the right of the states to tax national banking associations. It is not a tax on income but is an excise tax measured by income. The proceeds of the tax are distributed one-half (50%) to the general fund, 33.3% distributed to the municipalities, and the remaining 16.7% distributed to the counties.

Any person, firm, corporation and any legal entity whatsoever doing business in this state as a national banking association, bank, banking association, trust company, industrial or other loan company or building and loan association, and such term shall likewise include any other institution or person employing moneyed capital coming into competition with the business of national banks, and shall apply to such person or institution regardless of what business form and whether or not incorporated, whether of issue or not, and by whatsoever authority existing.

Act 99-665 requires all financial institutions conducting a credit card business through the issuance of credit cards to Alabama residents or businesses to file a financial institution excise tax return and pay any tax due. No place of business is required.

Financial institution shall not mean or include individual citizens and fiduciaries acting in a representative capacity for individual citizens, not engaged in a banking, loan, investment or similar business, but merely making personal investments of personal or fiduciary funds in bonds, notes or other evidences of indebtedness and not made in competition with the business of national banks, nor shall such term apply to insurance companies or insurance associations merely making investments of reserves in bonds, notes or other evidences of indebtedness and not made in competition with the business of national banks.