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AL SB425
Bill
Status
3/20/2012
Primary Sponsor
Tammy Irons
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AI Summary
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Clarifies that LLC members are not personally liable for non-income state or local taxes solely because the company is classified as a partnership for Alabama income tax purposes.
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Amends Section 10A-5-3.02 to add new subsection (d) stating LLC members shall not be personally liable for non-income state or local taxes except as provided in Sections 40-29-72 and 40-29-73.
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Amends Section 40-29-72(b) to expand the definition of "person" to explicitly include managers and members of limited liability companies in addition to officers and partners.
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Resolves inconsistent rulings from the Department of Revenue's Administrative Law Division, including the Nonna Rose Kingsley, LLC case from April 15, 2010, regarding joint personal liability of LLC members or managers.
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Declares the act a clarification of existing law, effective immediately for all open tax periods following passage and approval by the Governor.
Legislative Description
Limited liability companies, certain owners not liable for non-income taxes solely based on partnership classification, and to express intent, Secs. 10A-5-3.02, 40-29-72 am'd.
Business and Commerce
Last Action
Read for the first time and referred to the Senate committee on Finance and Taxation Education
3/20/2012