Only two senators on the Senate Fiscal Responsibility and Economic Development Committee voted for mandatory unitary combined reporting, a corporate income taxing scheme that would greatly hinder the state’s ability to attract new business.
The other 12 senators on the committee voted against SB67 by Sen. Linda Coleman-Madison, D-Birmingham, killing the legislation. The legal counsel for the Business Associations’ Tax Coalition (BATC) and representatives of other business groups spoke in opposition to the bill during a Wednesday, April 5, public hearing.
The bill would have increased taxes on Alabama businesses that operate in more than one state, even those that are primarily based here, including those that are members of a group of related companies. Alabama Retail and BATC have long opposed unitary combined reporting and will continue to do so.
A representative of the Birmingham Business Alliance mentioned two economic development projects currently being negotiated that would “fall apart” if Alabama required unitary combined reporting. Manufacture Alabama and the Alabama Economic Development Association of Alabama both testified that the legislation would make Alabama the only state in the Southeast with unitary combined reporting and would have a “chilling effect” on economic development. They also mentioned that General Electric moved its corporate headquarters out of Connecticut after that state adopted unitary combined reporting.
This article is part of the Alabama Retail Report, a communication for Alabama Retail Association members. Not a member? Join us!