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View All Consolidated Taxpayers, Financial Institution Excise Tax FAQs

Can a financial institution elect to file a consolidated Alabama Financial Institution Excise Tax Return?

Yes. Act 2019-284(HB419) revised the Consolidated filing requirements in Section 40-16-3, Code of Alabama, 1975 for tax periods beginning after December 31, 2019.

Each corporation included in the Alabama consolidated return must compute their Alabama taxable income on a separate company basis. The taxable income of the Alabama group is combined to determine the tax due.

There is no consolidated filing fee. To make the election, Alabama Form ET-C must be filed by the designated parent on or before the due date of the Alabama consolidated return, including extensions, and on or before the date the consolidated return is filed for the first taxable year for which the election is made and is to be effective. The consolidated election is binding for 120 consecutive months (10 years).

Yes. Act 2019-284(HB419) revised the Consolidated filing requirements in Section 40-16-3, Code of Alabama, 1975 for tax periods beginning after December 31, 2019.

Each corporation included in the Alabama consolidated return must compute their Alabama taxable income on a separate company basis. The taxable income of the Alabama group is combined to determine the tax due.

There is no consolidated filing fee. To make the election, Alabama Form ET-C must be filed by the designated parent on or before the due date of the Alabama consolidated return, including extensions, and on or before the date the consolidated return is filed for the first taxable year for which the election is made and is to be effective. The consolidated election is binding for 120 consecutive months (10 years).

Related FAQs in Consolidated Taxpayers, Financial Institution Excise Tax

In Alabama, a resale certificate is officially called a “Sales Tax License”. To get a copy of your Alabama resale certificate or Sales Tax License, you should:

Login to MAT, locate the appropriate tax account, locate and click “Print tax account license” link. If you need help or cannot access your certificate online contact the Alabama Department of Revenue Sales and Use Tax Division for assistance.

Step by Step Instructions for License Renewal

Yes. In accordance with Rule 810-6-1-.144.03: All buyers of property for resale purposes are entitled to purchase at wholesale, tax-free, the property they resell as regular course of business when they have secured the sales tax license required by law. This rule also applies to retailers located outside Alabama when they have secured the sales tax license required by law in the state in which they are located.

A credit card transaction fee is a charge added to the regular price of an item by a retailer when the purchaser pays for the item using a credit card. Other names for this fee include swipe fee, credit card surcharge, processing fee, service charge, or convenience fee.

These fees are subject to sales and use tax and should be included in the seller’s gross sales on retail transactions when calculating tax due. Example: A sale of tangible personal property totals $100. The customer pays with a credit card and is charged a $3 credit card transaction fee. The total price of $103, including the credit card transaction fee, is subject to sales and use taxes.

A credit card fee, even if separately stated, is part of the retailer’s cost of doing business, and the entire consideration for the sale of tangible personal property is subject to sales and use taxes.

If a transaction consists of only non-taxable goods or services, the credit card transaction fee is not subject to sales and use taxes. Example: A customer is charged $50 for a haircut. The customer pays with a credit card and is charged a $3 credit card transaction fee. Since the haircut is not subject to sales and use taxes, the corresponding credit card transaction fee is not subject to sales and use taxes.

When trying to complete title applications for vessels that have inches listed on the MSO, please use this Vessel Length Chart for conversion purposes.

Vessel Length Chart

Yes, Alabama allows resident individuals to claim a tax credit for income taxes imposed by other states. This credit is claimed on Form 40, Schedule CR. A copy of the other state’s return and a copy of the state Schedule K-1 should be included as documentation of this credit.

If the individual does not file an individual income tax return in the other state or the state provides an exclusion of income, include a proforma return calculating the tax at the other state’s rate and a copy of the state Schedule K-1 as documentation of this credit.

Note: Any Pass-Through Entity tax deducted on the Pass-Through Entity’s federal return, which reduces the taxable income reported on the owner’s K-1, should be added back to compute Alabama taxable income.

No, if the current title is an Alabama ELT there is no cost to print a physical title.

However, once an ELT is printed on physical title paper it can not be printed again. A replacement title application must be applied for if a replacement is needed.