Alabama House OKs bills that would raise business income tax

MONTGOMERY, Alabama - Alabama income taxes paid by busi­nesses would rise by an es­timated total of $5 million this year, $35 million next year and $30 million a year thereafter, under two bills passed Wednesday by the state House of Representa­tives.
Both bills now face re­view in the Senate.
The House voted 90-4 for House Bill 548, which would affect any Alabama resident who owns part of a limited liability company, partnership or similar busi­ness that operates in Ala­bama and at least one other state or country.
Now, he or she reports as taxable Alabama income only his or her share of the business income earned in Alabama. Under House Bill 548, his or her share of all the business income would be reported as taxable Ala­bama income, no matter where it was earned.
The resident owner would get a state tax credit for income taxes paid to other states, as well as to other countries, on income from the business.
The House voted 93-4 for House Bill 434, which would change how multi­state companies determine how much of their income is earned and taxable in Al­abama.
In general, companies with lots of sales in Ala­bama but relatively little payroll or property here would pay more state in­come tax under the bill, and companies with lots of payroll and property in Ala­bama but relatively small sales here would pay less state income tax.