Tax Advantage

Alabama Department of Revenue Tax Advantages for Industry

          Russell County

     Manufacturers Real Property Tax

(Tax Value)                            Rate                    Assess                          Effective Rate

                                               $1000                    Ratio                        In City          Out of City

                                                                                                              (59 Mills)       (36 Mills)City

City                                         $19.00                   20%                         $3.80                 $0.00

County                                   $29.50                   20%                         $5.90                 $5.90

State                                       $  6.50                   20%                         $1.30                 $1.30

Total                                       $55.00                                                     $11.00              $7.20

*Above Tax Figures include 37.50 Mills for Schools.

Homestead Exemption                                                                     Workman's Compensation

                                                                                                                Maximum weekly Compensation

State            County              Phenix City                                          payable limited to 2/3 of employee¡¦s

$4,000         $20,000               $4,000                                                average weekly salary-cost to

*No Hold on School Taxes                                                                employer is below average.

Effective Rate / $1000 Actual Value

Value          $11.80                   $7.20                                                 Corporate Franchise Tax

                                                                                                                Domestic: $10.00/$1,000 

                                                                                                                Capital Stock, Min. $50.00

Retail Sales                                                                                          Foreign: $3.00/$1,000 of the            

_City _        County      State                                                               actual amount of capital employed

 3.75%            1%              4%                                                              within the state, Min. $25.00  

State Taxes                                                                                         Corporate Permit Fee

Type                       Rate        Type                       Rate                       Foreign Corp. Capital annual permit

Corporate              5%         Retail Sales          4%                          fee in Alabama  

Gasoline              18%        Individual                                                           

Income                  Min. 2.0% & Max. 5.0%                                        $5.00                                 < $1,000

                                                                                                                $10.00                    $1,000-$10,000

Sales and Use Tax                                                                             $20.00                   $10,000-$25,000

General Tax Rate: 4% Automobile, Manufacturing                       $50.00                   $25,000-$50,000

and Farm Equipment Tax Rate: 1 and 1/2%                                  $100.00                 >$50,000

Inventory Tax                                                                                       Corporate Income Tax

Alabama exempts all business inventories from                         Domestic: 5% Max. of the net

property taxation. This includes all materials                                income annually. Deductions allowed

used in manufacturing, goods in process, stored                        for federal income tax paid or

manufacturing goods, and goods in transit.                                  accrued.

                                                                                                                Foreign: 5% of income annually from business

Unemployment Compensation                                                        within the state. Deductions are allowed for

For first $8,000 in wages annually:                                                  federal income tax paid or accrued.

A). If above statutory level, rates are 1/ƒ¢ of 1% - 5.4 %              

B). If below statutory level, rates adjusted, limited to a 25%.

     Increases in the tax up to a .7% maximum increase new

     employer begins with a tax rate of 2.7%