Alabama
Due date information and a description of the license tax calculation can be found in the Code of Alabama, Sections 11-51-90, 11-51-91, 11-51-120, 11-51-121, 11-51-122, and 11-51-123. Some municipalities may indicate a due date that is different from that prescribed by state statute. Required data for the Alabama input schedule for a proper license tax calculation is the amount of taxable premiums as prescribed by the Code of Alabama and applicable case law. The input schedule is comprised of columns for both Fire and Marine and Other than Fire and Marine.
Other applicable information regarding the Alabama Tax is covered in the return instructions for Alabama. To review the return instructions, load any return and click on the return instructions icon.
All license tax forms are identical with the exception of Mobile, Mobile Firefighter Pension, and Neumo. These cities have specific forms to be used for tax reporting purposes.
The last column of the rate schedule, entitled Neumo, determines which municipalities are to be included on the form. If an X appears in this column, the city will appear on the Neumo return.
The following are Company Options specific to Alabama. Regardless of the option selected, you must enter premiums in the input schedule or the return to generate a calculation.
Alabama Municipal Options
- Generate a single return and payment request payable to Neumo. A number of cities have contracted with Neumo (a third party) to collect taxes on their behalf. The payee for these returns is Neumo. Select this option if you want to file a single return for all municipalities which have contracted with Neumo to collect taxes on their behalf. When the box is checked, the individual returns for these municipalities will be deleted. The Neumo return, which is the last return in the tree, will source premiums from the input schedule for these municipalities.
- If fees set by city exceed AL Statute, use fee set by statute. Some cities indicate issuance fees, flat fees and tax rates that exceed those set by statute and the Business License Reform Act. If you select this option, Stratus Municipal will generate a maximum tax capped by statute. To see a list of cities affected by this option please review the following topic in the return instructions: Taxes and Fees which are Out of Compliance with Statutes.
- The following options will affect how flat fees and issuance fees are calculated for the Other than Fire tax. Generating a flat fee will also generate an issuance fee:
- Generate other than Fire flat fee when tax is rounded down to zero and display option is dollar. If you are calculating returns in whole dollars, the Other than Fire and Marine Tax can be rounded down to zero. Selecting this option will generate the fee even if this is the case.
- Generate other than Fire flat fee when premiums are zero. If you select this option, a flat fee will calculate even if the other than fire and marine premiums entered are zero.
- Generate other than Fire flat fee when premiums are negative. If you select this option, a flat fee will calculate even if the other than fire and marine premiums entered are negative.
- Generate issuance fee when premiums are zero. If you are entering premiums that are zero, this option will generate an issuance fee.
- Generate issuance fee when premiums are negative. If you are entering premiums that are negative, this option will generate an issuance fee.
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