Alabama Tax Developments: 2010 in Review

The final Alabama edition of our SALT Bulletin for the year summarizes the major legislative, judicial and administrative developments affecting Alabama taxpayers during 2010 with respect to income, business privilege, transaction and property taxes. The 2010 regular legislative session produced only a handful of noteworthy tax bills, but included an incentive to hire unemployed workers that was one of Governor-elect Dr. Robert Bentley's key platform items. The courts decided several cases of importance during the year, including granting a taxpayer's requested corporate income tax refund due to federal audit changes while, unfortunately, concluding that a taxpayer's sale of unitary operating assets produced nonbusiness income. The final section of this bulletin provides a few predictions regarding legislative tax proposals that we expect to be introduced in what is shaping up to be a contentious 2011 regular session.