14 
TAXATION AND REVENUE SYSTEMS—ALABAMA. 
rate to 65 cents. The annual rate is not determined 
by apportionment, but the code (subject to amendment 
at each session) fixes the rate in round numbers, and 
the amount so raised is apportioned for the various 
purposes. 
In 1912 the total rate of 65 cents was divided as follows: 30 cents 
for schools, 10 cents for the relief of needy Confederate soldiers 
and sailors, and 25 cents for general purposes. 
3. Collection— 
Taxes are collected by the county tax collector, who 
is paid for his services by commissions out of the taxes 
collected, similar to those allowed the assessor, and is 
allowed small fees, paid by the taxpayer, for collecting 
delinquent taxes. Taxes are due and payable after 
the 1st of October and become delinquent on the 1st 
day of January. The collector attends in each elec 
tion precinct twice each year and makes appointments 
for the payment of taxes. Except for the collectors’ 
fees, costs, and interest there are no penalties for 
delinquency. Delinquent taxes may be collected by 
seizure and sale of personal property, by garnishment, 
or by sale of lands under action by the court of county 
commissioners. 
B. POLL TAXES. 
The state poll tax (see sec. 194 of Art. VIII of the 
Constitution), less expenses of levy and collection, is 
paid into the state treasury and by it disbursed to the 
county to be expended for the schools within the 
county of its collection. 
1. Base— 
Every male inhabitant from 21 to 45 years of age 
not exempt by law. Those exempt are: Township 
trustees (in charge of schools), all members of Alabama 
National Guard, and all persons permanently disabled 
whose taxable property does not exceed S500, deaf- 
mutes, insane, and blind. 
2. Rate— 
Fixed by the constitution at $1.50 per annum. 
3. Collection— 
Collected by county tax collectors under supervision 
of state auditor. 
4. Apportionment— 
Apportioned by the state superintendent of educa 
tion. Each county is entitled to all the poll taxes col 
lected within its bounds, and each township or school 
district and each race therein to the amount collected 
therefrom. 
C. THE INHERITANCE TAX. 
There is, at present, no inheritance tax in Alabama, 
but the constitution of 1901 provides that the legisla 
ture may levy such a tax. (Art. XI, sec. 219.) 
D. CORPORATION TAXES. 
Corporations without exception are covered, as are 
private individuals, by the general property tax, by 
the license taxes, or by both, while certain of them 
are also subject to special privilege taxes. The con 
stitution of 1901 (Art. XII, secs. 229 and 232) pro 
vides that the legislature shall by general law provide 
for the payment of a franchise tax. 
Domestic corporations whose paid-up capital stock does not exceed 
$50,000, pay an annual franchise tax of $1 per thousand on its paid-up 
capital stock; if the capital stock exceeds $50,000 and does not 
exceed $1,000,000, $1 per thousand on the first $50,000, and 50 cents 
for each thousand of the remainder; if it exceeds $1,000,000 and 
does not exceed $5,000,000, $1 per thousand on the first $50,000, 50 
cents per thousand for the next $950,000, and 25 cents per thousand 
on the remainder; if it exceeds $5,000,000, $1 per thousand on the 
first $50,000, 50 cents per thousand on the next $950,000, 25 cents 
per thousand on the next $4,000,000, and 10 cents per thousand on 
the remainder. 
Foreign corporations authorized to do business in the state pay 
on their actual amount of capital an annual franchise tax equal to 
that paid by domestic corporations on their paid-up capital stock. 
In addition to this tax, foreign corporations pay to the county an 
amount equal to one-half the amount paid to the state. The amount 
of franchise tax to be paid by any foreign corporation is ascertained 
by deducting from the capital of such corporation the aggregate 
amount of loans secured by mortgages on real estate. 
The following privilege or license taxes on corpora 
tions are notable and different in character from the 
other licenses: 
Insurance companies, except fraternal, pay the following amounts 
to the insurance commissioner on gross premiums received, less the 
premiums returned by cancellation: Foreign fire, $1.50 on the $100 
of gross premiums; other foreign companies pay $2 on the $100 of 
gross premiums; domestic insurance companies pay $1 on each 
$100 of gross premiums, less said return premiums; any such domes 
tic company paying a tax on its property or shares may deduct the 
same from this tax. Fraternal organizations pay an annual license 
tax of $50, but all funds of such society are exempt from all taxes 
other than taxes on real estate and office equipment. 
Fire insurance companies pay to the insurance commissioner 
annually, in addition to other taxes, one-fifth of 1 per cent on gross 
premium receipts, less return premiums, for the purpose of defray 
ing expense of investigation, etc., of fires. Any balance may be 
transferred to the general state fund. 
Express companies doing business between points wholly within 
the state pay a license or privilege tax of $4,000 per annum, but if 
such company operates on less than 50 miles of railroad it pays $250; 
from 50 to 200 miles, $1,000; and from 200 to 500 miles, $2,000. 
Sleeping car companies pay an annual privilege tax of $5,500, 
which is in satisfaction of all other taxes, except a municipal tax 
which shall not exceed $10. 
Telegraph and telephone companies, in addition to the general 
property tax, pay an annual privilege tax; companies whose lines 
in the state do not exceed 150 miles pay $1 per mile; over 150 miles, 
$500, together with $1 for each additional mile. Long-distance tele 
phone companies whose lines do not exceed 200 miles within the 
state pay, in addition to property taxes, 50 cents per mile; over 200 
miles, $250. 
On the gross income of freight line and equipment companies a 
tax of 3 per cent is levied. 
Building and loan associations, domestic or foreign, pay a privi 
lege tax of $1 on each $1,000 of paid-up capital stock up to $100,000 
and 50 cents on each $1,000 over $100,000, and also taxes on office 
furniture and real estate, but are not required to pay taxes on mort 
gages on real estate. 
Railroad companies operating lines within the state pay as a rail 
road license tax such percentage of their gross earnings accruing 
from business within the state as may be necessary to pay the ex 
penses of the state railroad commission.