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Alabama: Adopted Rule Changes Reflect Move from Double-Weighted to Single Sales Factor
Amended Reg. Section 810-27-1-.09, Ala. Dept. of Rev. (12/30/21). The Alabama Department of Revenue adopted rule changes reflecting legislation enacted in 2021 [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. The revisions include requiring the apportionment formula to include the pro rata share of an unincorporated entity’s (e.g., a partnership, unincorporated joint-venture, limited liability company taxed as a partnership, etc.) factor data in instances where certain taxpayers have a business interest in the unincorporated entity. Please contact us with any questions.
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