Alabama would increase sales factor weight, shift to market sourcing

The Alabama House of Representatives passed legislation that would amend the state's Multistate Tax Compact provisions to double -weight the sales factor and adopt market-based sourcing provisions for certain sales of other than tangible personal property, effective for tax years beginning on or after December 31, 2010. Notably, the market sourcing provisions include a throw-out rule in certain situations where the market cannot be determined. [H.B. 434, transferred to Senate, 5/5/11]

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