New Rental Tax Bill - City/County Sourcing Rules

From Bruce Ely of Bradley Law:

"The bill linked here may interest your equipment/vehicle/furniture leasing clients. It was introduced on Tuesday, March 19, 2019.

This one came out of the blue, but you can almost bet it arose from either a local government or Alabama DOR rental tax audit.

Note: it’s retroactive for all open tax years. We’re not sure how your leasing clients are sourcing their rental taxes now, but if it’s any different than the sourcing rules contained in the bill and it passes with retroactive effect, that could be a problem. While the sourcing rules in the bill appear to track informal guidance we have received over the years from the ADOR, that doesn’t necessarily mean all your clients are aware of and follow that guidance. You may wish to forward the bill to and encourage them to read the sourcing rule provisions as soon as possible."

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