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Alabama: Proposed Rule Changes Reflect Move from Double-Weighted to Single Sales Factor
Proposed Amended Reg. Section 810-27-1-.09; Notice of Intended Action: Rule 810-27-1-.09 – Apportionment Formula: Double Weighting the Sales Factor, Ala. Dept. of Rev. (9/30/21). The Alabama Department of Revenue proposed rule changes reflecting legislation enacted earlier this year [see H.B. 170 (2021) and previously issued Multistate Tax Alert for more details on this new law] that, effective for periods beginning on or after January l, 2021, moves from a three-factor double-weighted sales apportionment formula to a single-sales factor formula for state corporate income tax purposes. Alabama’s enacted legislation also eliminates Alabama’s “throwback” rule for purposes of computing the sales factor. A virtual public hearing on the proposed rule changes is scheduled for November 9, 2021, and any written comments are due on the same date. Please contact us with any questions.
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