Mar 09, 2015
From KPMG TaxWatch
Governor Robert Bentley of Alabama recently released details of his FY 2015-2016 budget, which includes an estimated $541 million in tax increases. In the Governor’s view, these increases are necessary to alleviate a $700 million general fund shortfall that is caused largely by increased funding required for Medicaid and corrections and the use of one-time revenues to balance prior budgets. The governor has proposed eight options for raising taxes. Those affecting corporate taxpayers include adopting mandatory combined reporting and eliminating certain credits for taxes paid that are currently available to offset tax owed by financial institutions and insurance companies. On the sales and use tax side, the Governor proposes to increase the tax rate applied to sales and rentals of automobiles from two percent to four percent. Other changes include an increase in taxes on cigarettes and tobacco products and eliminating an exemption from the public utilities license tax that currently applies to municipal utilities. Please stay tuned to TWIST for updates on these proposed tax increases.
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The following information is not intended to be "written advice concerning one or more federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230.
The information contained herein is of a general nature and based on authorities that are subject to change. Applicability of the information to specific situations should be determined through consultation with your tax adviser.