§ 26-51-416 — Deductions - Taxes

In computing net income, there shall be allowed as deductions taxes paid or accrued within the income year, imposed by the authority of the United States or any of its possessions or of any state, territory, or any political subdivision of any state or territory, or the District of Columbia, or of any foreign country, except estate, succession, or inheritance taxes or except income taxes imposed by the Income Tax Act of 1929, § 26-51-101 et seq., and taxes assessed for local benefits of a kind tending to increase the value of the property assessed for those benefits. However, the deductions allowed in this section for taxes shall not include any allowances or deductions for federal income taxes paid or accrued by the taxpayer within the income year which are imposed by the authority of the United States or any of its possessions; nor shall individuals be allowed an itemized deduction for general sales or use taxes imposed by the authority of any state or subdivision thereof, or for the cost of license plates or drivers' licenses, or for motor fuel or special motor fuel taxes.

Legislative History

Acts 1929, No. 118, Art. 3, § 13; Pope's Dig., § 14036; Acts 1947, No. 135, § 2; 1949, No. 234, § 1; 1957, No. 147, § 1; A.S.A. 1947, § 84-2016; Acts 1987, No. 382, § 16.