Gambling Tax Law in Alabama: Gambling is a popular pastime for many people, but it can also have tax implications. If you are a resident of Alabama or plan to visit the state and engage in some gambling activities, you should be aware of the gambling tax law in Alabama and how it affects your winnings. Here are some key points to keep in mind: Gambling winnings are taxable income. According to the Internal Revenue Service (IRS), gambling winnings are fully taxable and must be reported on your federal income tax return, regardless of the amount or source. This includes winnings from casinos, lotteries, horse races, dog races, sweepstakes, game shows, and any other form of gambling. You may also have to report your gambling winnings to the state of Alabama, depending on the type and amount of your winnings. Gambling losses may be deductible . The IRS allows you to deduct your gambling losses from your gambling winnings, but only up to the amount of your winnings. You cannot deduct more than you win or claim a net loss from gambling. To claim this deduction, you must itemize your deductions on Schedule A of Form 1040 and keep a detailed record of your gambling activities, such as receipts, tickets, statements, or other proof of your winnings and losses. Gambling devices are illegal in Alabama. The state of Alabama has a strict ban on gambling devices, such as slot machines, roulette wheels, craps tables, or any other device used for gambling purposes. Possessing or operating a gambling device is a Class A misdemeanor punishable by up to one year in jail and a fine of up to $6,000. The only exception is for federally recognized tribes that operate casinos on their lands under the Indian Gaming Regulatory Act. Gambling venues are limited in Alabama. The state of Alabama does not allow casinos or online gambling, except for those operated by federally recognized tribes. The only other forms of legal gambling in Alabama are pari-mutuel betting on horse and dog races and charitable bingo games. However, these activities are subject to local regulations and licensing requirements. For example, only cities with a population of 300,000 or more can authorize horse or dog racing by referendum. Gambling taxes vary by jurisdiction. The state of Alabama does not have a specific tax rate for gambling winnings, but they are subject to the state income tax rates that range from 2% to 5% depending on your income level. In addition, some municipalities may impose local taxes on gambling winnings or activities. For example, Birmingham has a 1% occupational tax on gross income from any source within the city limits. As you can see, gambling tax law in Alabama is complex and may differ depending on where you gamble and how much you win or lose. Therefore, it is advisable to consult a tax professional before you file your tax return or engage in any gambling activities in Alabama. This way, you can avoid any potential penalties or audits from the IRS or the state authorities.

Laws in Alabama

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Table of Contents

Alabama Crimes: Laws and Penalties

Alabama has a set of laws that define what acts and omissions constitute criminal offenses, and what are the possible punishments for each offense. These laws are consolidated into Title 13A of the Alabama Code, also known as the Criminal Code. The Criminal Code categorizes illegal behavior into three different categories by severity: violations, misdemeanors, and felonies.

Violations are the least severe of the three criminal classifications in Alabama. They include such things as traffic tickets and usually carry a fine of under $200 or up to 30 days in county jail.

Misdemeanors are considered less serious than felonies, but more serious than violations. They are classified into three classes by severity: Class A, Class B, and Class C. The punishment for a misdemeanor may include prison time, a fine, or both. For example, Class A misdemeanors include possession of marijuana for personal use and theft of goods under $500, and carry a punishment range of up to one year in prison and/or $6,000 in fines .

Felonies are the most serious type of crime in Alabama. They are also classified into three classes by severity: Class A, Class B, and Class C. The punishment for a felony may include prison time, a fine, or both. For example, Class A felonies include murder and rape, and carry a punishment range of 10 to 99 years or life in prison and/or up to $60,000 in fines . Alabama also requires a minimum sentence for certain felonies if the offender used or tried to use a gun or other deadly weapon while committing the crime.

In addition to theft of property or services, Alabama law provides specific penalties for other types of theft, such as theft of trademarks or trade secrets, cargo, cable television or satellite reception, and gasoline. Alabama also has laws on sex crimes, such as statutory rape and sexual abuse, and on gun crimes, such as open and concealed carry laws.

For complete information on any Alabama Law, please search Alabama Legislature (state.al.us)

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What are the Laws in Alabama?

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Alabama State Laws

The state laws have been placed into easy-to-navigate categories. The information below is a summary only, and is intended to help you better understand and prepare yourself with questions to ask a qualified practicing attorney.

Alabama Accident and Injury Laws

Negligence

Alabama’s Negligence Law

Negligence is a legal term that refers to the failure to act with reasonable care and prudence in a given situation, resulting in harm or injury to another person. In Alabama, negligence law is based on the doctrine of contributory negligence, which means that a plaintiff who is partially at fault for their own injuries cannot recover any compensation from the defendant. This is different from most other states, which use a comparative negligence system that allows plaintiffs to recover damages proportionate to their degree of fault.

Elements of Negligence

To prove negligence in Alabama, a plaintiff must establish four elements:

Duty: The defendant owed a duty of care to the plaintiff, meaning that they had an obligation to act or refrain from acting in a certain way to avoid causing harm.
Breach: The defendant breached their duty of care by acting or failing to act in a reasonable manner under the circumstances.
Causation: The defendant’s breach of duty was the actual and proximate cause of the plaintiff’s injuries, meaning that the harm would not have occurred but for the defendant’s conduct and that it was a foreseeable and natural consequence of it.
Damages: The plaintiff suffered actual losses or injuries as a result of the defendant’s negligence, such as medical expenses, lost wages, pain and suffering, etc.

Alabama’s negligence law is different from most other states because it follows the doctrine of contributory negligence. This means that if a plaintiff is found to have contributed in any way to their own injury, they are barred from recovering any compensation from the defendant. This is a very strict rule that can prevent plaintiffs from getting justice even if they were only slightly at fault.

For example, if a plaintiff was injured in a car accident caused by a speeding driver, but the plaintiff failed to use their turn signal when changing lanes, the plaintiff would not be able to recover any damages from the speeding driver under Alabama negligence law. The plaintiff would be considered contributorily negligent and therefore responsible for their own injury.

There are some exceptions to this rule, like when the defendant did something recklessly, maliciously, or on purpose to break the law. In those cases, the plaintiff may still be able to recover damages even if they were partially at fault. However, these exceptions are rare and difficult to prove.

Establishing negligence in Alabama

To establish negligence in Alabama, a plaintiff must prove four elements:

The defendant owed a duty of care to the plaintiff.
The defendant breached that duty of care.
The breach caused the plaintiff’s injury, and
The plaintiff suffered damages as a result of the injury.

A duty of care is an obligation to act with reasonable care and prudence in a given situation. For example, drivers have a duty of care to obey traffic laws and avoid causing harm to other road users. A breach of duty is a failure to meet that obligation. For example, running a red light or driving under the influence would be breaches of duty.

Causation is the link between the breach of duty and the injury. The plaintiff must show that but for the defendant’s breach of duty, they would not have been injured. For example, if the defendant ran a red light and hit the plaintiff’s car, causing them to suffer whiplash, the plaintiff must show that they would not have suffered whiplash if the defendant had stopped at the red light.

Damages

Damages are the losses or harms that the plaintiff suffered as a result of the injury. Damages can be economic or non-economic. Economic damages are quantifiable losses such as medical bills, lost wages, property damage, and future expenses. Non-economic damages are subjective losses such as pain and suffering, emotional distress, loss of enjoyment of life, and loss of consortium.

Alabama’s negligence law allows plaintiffs to recover both economic and non-economic damages from defendants who are found liable for negligence. However, plaintiffs must also be aware of the statute of limitations for filing a negligence lawsuit in Alabama. The statute of limitations is the time limit within which a plaintiff must file their claim or lose their right to do so. In Alabama, the statute of limitations for negligence claims is generally two years from the date of the injury.

Negligence law in Alabama can be complex and challenging for plaintiffs who seek compensation for their injuries. Therefore, it is advisable to consult with an experienced personal injury attorney who can help them navigate the legal process and protect their rights.

Contributory Negligence

Alabama is one of the few states that follows the contributory negligence rule, which bars any recovery for plaintiffs who are found to have contributed to their own injuries in any way. This means that even if the defendant was 99% at fault and the plaintiff was only 1% at fault, the plaintiff would still receive nothing. The burden of proof is on the defendant to show that the plaintiff was negligent and that their negligence contributed to the accident.

Exceptions to Contributory Negligence

There are some exceptions to the contributory negligence rule in Alabama, such as:

Last clear chance: If the defendant had the last clear chance to avoid the accident but failed to do so, they may still be liable even if the plaintiff was negligent.
– Willful or wanton conduct: If the defendant acted with intentional or reckless disregard for the safety of others, they may still be liable even if the plaintiff was negligent.
Children: If the plaintiff is a child under 14 years old, they are presumed to be incapable of contributory negligence unless the defendant can prove otherwise.

Workers’ Compensation Laws

Workers’ compensation is a system that provides benefits to employees who are injured or become ill as a result of their work. Workers’ compensation also protects employers from lawsuits by injured workers. In Alabama, workers’ compensation is regulated by the Workers’ Compensation Division of the Department of Labor.

Who is covered by workers’ compensation in Alabama?

According to Alabama’s workers’ compensation law, employers who regularly employ five or more employees (full-time or part-time) must have workers’ compensation coverage. There are some exceptions, such as employers in the business of constructing single-family detached residential dwellings, domestic employees, farm laborers, and municipalities with less than 2,000 inhabitants.

What Benefits Are Available Under Workers’ Compensation in Alabama?

Workers’ compensation benefits in Alabama include medical care, wage replacement, permanent disability, vocational rehabilitation, and death benefits. Medical care covers all reasonable and necessary treatment for work-related injury or illness. Wage replacement pays two-thirds of the employee’s average weekly wage, up to a maximum amount, for the time they are unable to work. Permanent disability pays a percentage of the employee’s wage for a certain number of weeks, depending on the extent and nature of the impairment. Vocational rehabilitation provides services to help the employee return to work or find a suitable alternative occupation. Death benefits pay a portion of the employee’s wage to their surviving spouse and dependents, as well as funeral expenses.

How to File a Workers’ Compensation Claim in Alabama

To file a workers’ compensation claim in Alabama, the employee must notify their employer of the injury or illness within five days of its occurrence or discovery. The employer must then report the claim to their insurance carrier and the Workers’ Compensation Division within 15 days. The insurance carrier will investigate the claim and determine whether to accept or deny it. If the claim is accepted, the employee will start receiving benefits. If the claim is denied, the employee can request mediation or file a lawsuit in circuit court.

Eligibility and Coverage

In Alabama, most employers who regularly employ five or more employees (full-time or part-time) are required to have workers’ compensation insurance. Some exceptions include employers in the construction of single-family detached residential dwellings, domestic employees, farm laborers, and casual employees. Employees who are covered by workers’ compensation are generally barred from suing their employers for work-related injuries or illnesses.

Workers’ compensation covers injuries and illnesses that arise out of or in the course of employment. This means that the injury or illness must be related to the worker’s job duties and must occur while the worker is performing those duties. Workers’ compensation does not cover injuries or illnesses that are caused by the worker’s own misconduct, intoxication, willful disregard of safety rules, or intention to injure oneself or another.

Benefits and Claims

Workers’ compensation benefits in Alabama include:

Medical benefits: Workers’ compensation pays for all reasonable and necessary medical treatment for work-related injuries or illnesses. The employer or its insurance carrier has the right to select the treating physician and may require the worker to submit to medical examinations.
Wage-loss benefits: Workers’ compensation pays for a portion of the worker’s lost wages due to work-related injuries or illnesses. The amount of wage-loss benefits depends on the worker’s average weekly wage, the degree of disability (temporary total, temporary partial, permanent total, or permanent partial), and the duration of disability. The maximum weekly benefit is $920 as of July 1, 2020.
Permanent partial disability benefits: Workers’ compensation pays for permanent impairment or loss of function of a body part due to work-related injuries or illnesses. The amount of permanent partial disability benefits depends on the worker’s average weekly wage, the percentage of impairment assigned by a physician, and the body part affected. The maximum weekly benefit is $220 as of July 1, 2020.
Permanent total disability benefits: Workers’ compensation pays for a permanent and total loss of earning capacity due to work-related injuries or illnesses. The amount of permanent total disability benefits is equal to two-thirds of the worker’s average weekly wage, subject to a maximum of $920 per week as of July 1, 2020. Permanent total disability benefits are paid for life or until the worker is able to return to work.

Death benefits: Workers’ compensation pays for funeral expenses up to $6,500 and survivor benefits to the dependents of a worker who dies as a result of work-related injuries or illnesses. As of July 1, 2020, the most a survivor can get in benefits is $920 per week, which is 50% of the worker’s average weekly wage for one dependent and 66.23% for two or more dependents. Surviving spouse benefits are paid for 500 weeks or until the dependent remarries or dies.

In Alabama, a worker must tell his or her employer about an injury or illness within five days of getting hurt or finding out about it, unless there is a good reason for the delay. After getting notice from the worker, the employer has 15 days to file a report with the Alabama Department of Labor. Within 90 days of getting a notice from the worker, the employer or its insurance company must either accept the claim or turn it down. If the claim is accepted, the employer or its insurance company must start paying benefits within 30 days of accepting liability. If the claim is denied, the worker may file a lawsuit in circuit court within two years of the date of the injury or the last payment of benefits.

Resources and Assistance

The Workers’ Compensation Division of the Alabama Department of Labor is in charge of making sure the workers’ compensation law is followed. The division provides information and services to workers, employers, insurance companies, attorneys, judges, legislators, and other parties involved in workers’ compensation matters. The division also has a program called the Ombudsman Program, which helps injured workers who don’t have an attorney for free.

Source: https://labour.alabama.gov/wc/workers-compensation.aspx

Traffic and Seatbelt Laws

Child Passenger Restraint Laws and Car Seat Laws in Alabama

Alabama has a law that requires every person transporting a child in a motor vehicle to use a proper child passenger restraint system. The law applies to all motor vehicles operated on the roadways, streets, or highways of the state, including passenger cars, pickup trucks, vans, minivans, and sports utility vehicles. The law doesn’t let car companies off the hook when it comes to making sure kids are as safe as adults are according to federal safety standards.

Types of Child Passenger Restraints

The law specifies the types of child passenger restraints that must be used according to the age and weight of the child. The restraints must meet applicable federal motor vehicle safety standards and the requirements of Section 32-5B-4 of the Alabama Code. The types of restraints are:

Infant-oonly seats and convertible seats used in the rear facing position for infants until at least one year of age or 20 pounds
– Convertible seats in the forward position or forward facing seats until the child is at least five years of age or 40 pounds.
– Booster seats until the child is six years of age.
– Seat belts until 15 years of age.

Penalties and Exceptions

The law imposes a fine of $25 for each violation of the child passenger restraint requirements. However, the charges may be dismissed by the trial judge, and no court costs shall be assessed if the person shows proof of the acquisition of an appropriate child passenger restraint. The law also allocates $15 of each fine to distribute vouchers for size appropriate child passenger restraint systems to families of limited income in the state.

The law does not create any duty, standard of care, right, or liability between parent and child that is not recognised under the laws of Alabama. The law also does not affect the provisions or coverage of any insurance contract. The law does not consider failure to wear a child passenger restraint system as contributory negligence.

The Department of Public Safety shall assess one point for each violation of child safety restraint requirements for the purpose of identifying habitually negligent drivers and habitual or frequent violators.

Source: Child Restraints Law | Alabama Law Enforcement Agency (https://www.alea.gov/dps/highway-patrol/child-restraints-law)

Alabama Seat Belt Laws

Alabama has a primary seat belt law, which means that law enforcement officers can stop and ticket drivers and passengers for not wearing a seat belt, even if they have not committed any other traffic violation. The law applies to everyone, of any age, who rides in the front seat of a passenger car that was made with safety belts. The fine for violating the seat belt law is $25.

Seat belts are one of the most effective ways to prevent death and injury in a car crash. The National Highway Traffic Safety Administration (NHTSA) estimates that seat belts saved about 14,955 lives in 2017. However, not everyone wears a seat belt every time they get in a vehicle. In Alabama, seat belt use was 90.4% in 2019, slightly below the national average of 90.7%.

Exemptions

There are some exemptions to the seat belt law in Alabama. The following people are not required to wear a seat belt:

– A child passenger under the age of 15 who is required to use a child passenger restraint system or a seat belt pursuant to Section 32-5-22
an occupant of a passenger car who possesses a written statement from a licenced physician that he or she is unable for medical reasons to wear a safety belt.
A rural letter carrier of the United States Postal Service while performing his or her duties as a rural letter carrier
A driver or passenger delivering newspapers or mail from house to house Passengers in a passenger car with a model year prior to 1965, and passengers in motor vehicles that normally operate in reverse

Benefits of Wearing a Seat Belt

Wearing a seat belt can reduce the risk of fatal injury by 45% for front-seat occupants and by 60% for rear-seat occupants in passenger cars, according to NHTSA. Seat belts can also prevent occupants from being ejected from the vehicle in a crash, which is almost always fatal. Additionally, wearing a seat belt can protect against legal consequences, such as fines, points on driving record, and increased insurance rates.

Conclusion

Seat belts are a simple and effective way to save lives and prevent injuries on the road. Alabama’s seat belt law requires all front-seat occupants of passenger cars to wear a safety belt at all times when the vehicle is in motion, unless they qualify for an exemption. By buckling up every trip, every time, drivers and passengers can protect themselves and others from the devastating impacts of car crashes.

References

Seat Belt Laws | Alabama Law Enforcement Agency https://www.alea.gov/seat-belt-laws
Seat Belt Safety | Drive Safe Alabama | Alabama Dept of Transportation https://drivesafealabama.org/keys-to-safety/seat-belt-safety/

Alabama Move Over Act

The Alabama Move Over Act is a law that aims to protect law enforcement officers, emergency responders, tow operators, utility service workers, and garbage collectors who are working on the roadside. The law requires drivers to move over or slow down when they see these vehicles parked or engaged in their duties on or along the road. The law also imposes fines for violating the move over or slow down rules.

Move Over or Slow Down Rules

According to the Alabama Move Over Act , drivers must do the following when they encounter a law enforcement vehicle, emergency vehicle, wrecker, utility service vehicle, vehicle displaying flashing lights, or garbage collection vehicle on the roadside:

When driving on an interstate highway or other highway with two or more lanes travelling in the direction of the parked or engaged vehicle, the driver must vacate the lane closest to the vehicle, unless otherwise directed by a law enforcement officer. If it is not safe to move over, the driver must slow to a speed that is at least 15 miles per hour less than the posted speed limit, unless otherwise directed by a law enforcement officer.
– When driving on a two-lane road, the driver must move as far away from the vehicle as possible within his or her lane and slow to a speed that is 15 miles per hour less than the posted speed limit when the posted speed limit is 25 miles per hour or greater, or travel at 10 miles per hour when the posted speed limit is 20 miles per hour or less, unless otherwise directed by a law enforcement officer.

Fines for Violating the Law

The Alabama Move Over Act also specifies the fines for violating the move over or slow down rules. Effective September 1, 2019, Act 2019-520 increases the fine associated with a violation of the Alabama Move Over Act as follows:

$100 for a first violation
$150 for a second violation
– $200 for a third or subsequent violation

A violation of this law is a misdemeanor.

Purpose and Benefits of the Law

The purpose of the Alabama Move Over Act is to protect the safety and lives of those who work on the roadside and provide essential services to the public. By moving over or slowing down, drivers can reduce the risk of collisions and injuries involving these workers and their vehicles. The law also helps drivers avoid fines and legal consequences for endangering roadside workers. The law benefits everyone who uses Alabama’s roads and highways by promoting a culture of respect and responsibility among drivers.

Alabama Civil Rights Laws

Civil Rights Laws

Alabama Civil Rights Laws:

Civil rights laws are designed to protect individuals from discrimination and ensure their equal treatment under the law. Alabama, like every state in the United States, has its own set of civil rights laws. This article will provide an overview of Alabama’s civil rights laws, including key provisions and protections.

Overview of Alabama Civil Rights Laws

Alabama’s civil rights laws are contained in the Alabama Human Rights Act (AHRA), which prohibits discrimination on the basis of race, color, religion, national origin, sex, age, disability, and genetic information in employment, housing, public accommodations, and education. The AHRA is enforced by the Alabama Human Rights Commission (AHRC), which investigates complaints of discrimination and can take legal action against violators.

Protections against Employment Discrimination

Under the AHRA, employers with 15 or more employees are prohibited from discriminating against employees or job applicants on the basis of race, color, religion, national origin, sex, age, disability, or genetic information. The AHRA also prohibits retaliation against individuals who file discrimination complaints or assist in investigations.

Protections against Housing Discrimination

The AHRA also prohibits discrimination in housing on the basis of race, color, religion, national origin, sex, familial status, and disability. Landlords and property owners are prohibited from refusing to rent or sell housing, setting different terms or conditions, or advertising in a discriminatory manner. The AHRC investigates complaints of housing discrimination and can take legal action against violators.

Protections against Discrimination in Public Accommodations and Education

The AHRA prohibits discrimination in public accommodations, such as hotels, restaurants, and stores, on the basis of race, color, religion, national origin, sex, age, or disability. The law also prohibits discrimination in education, including public schools and colleges, on the basis of race, color, religion, national origin, sex, disability, and age.

Enforcement of Alabama Civil Rights Laws

Individuals who believe they have been the victims of discrimination can file a complaint with the AHRC within 180 days of the alleged discrimination. The AHRC will investigate the complaint and attempt to resolve the issue through mediation. If mediation is unsuccessful, the AHRC can file a lawsuit on behalf of the victim or issue a right-to-sue letter, which allows the victim to file a lawsuit on their own.

Conclusion

Alabama’s civil rights laws are designed to protect individuals from discrimination and ensure their equal treatment under the law. These laws prohibit discrimination on the basis of race, color, religion, national origin, sex, age, disability, and genetic information in employment, housing, public accommodations, and education. The AHRC is responsible for enforcing these laws and investigating complaints of discrimination. If you believe you have been the victim of discrimination in Alabama, contact the AHRC for assistance.

Alabama Corporate Business Laws

State Corporation Laws

Alabama State Corporation Laws:

Incorporating a business in Alabama is a complex process that requires compliance with state laws and regulations. Alabama’s corporation laws govern the formation, operation, and dissolution of corporations in the state. This article will provide an overview of Alabama’s corporation laws, including the incorporation process, legal structures, and requirements for maintaining corporate status.

The Incorporation Process in Alabama

The incorporation process in Alabama begins with the filing of articles of incorporation with the Alabama Secretary of State’s office. The articles must include certain information, such as the name and purpose of the corporation, the number and type of shares of stock to be issued, and the names and addresses of the initial directors. The corporation must also obtain a tax identification number from the Internal Revenue Service (IRS) and register with the Alabama Department of Revenue.

Legal Structures for Alabama Corporations

Alabama law recognizes several legal structures for corporations, including C corporations, S corporations, and limited liability companies (LLCs). C corporations are the most common type of corporation and offer limited liability protection to shareholders. S corporations are similar to C corporations but are taxed differently and have more restrictions on ownership. LLCs are a popular alternative to corporations because they offer similar limited liability protection but with more flexibility in management and taxation.

Requirements for Maintaining Corporate Status in Alabama

Once a corporation is formed in Alabama, it must comply with state laws and regulations to maintain its corporate status. This includes holding annual shareholder and director meetings, keeping accurate records of corporate activities, and filing annual reports with the Alabama Secretary of State’s office. Failure to comply with these requirements can result in penalties and even the loss of corporate status.

Incorporation

To incorporate a corporation in Alabama, you need to file a Certificate of Incorporation with the Secretary of State. The Certificate of Incorporation must include the name of the corporation, the number and classes of shares authorized, the name and address of the registered agent, and the name and address of each incorporator. You may also include other optional provisions, such as the purpose of the corporation, the duration of the corporation, the rights and preferences of different classes of shares, and any limitations on the liability or authority of directors or officers. The filing fee for the Certificate of Incorporation is $100 plus $1 for each 1,000 shares authorized.

Under the old law, you had to file Articles of Incorporation with the judge of probate in the county where the corporation’s principal office was located. The filing fee was $50 plus $1 for each 1,000 shares authorized.

Amendment and Dissolution

To amend or dissolve a corporation in Alabama, you need to file a Certificate of Amendment or a Certificate of Dissolution with the Secretary of State. The Certificate of Amendment must include the name of the corporation, the date of incorporation, the text of each amendment adopted, and a statement that each amendment was duly approved by the board of directors and the shareholders. The filing fee for the Certificate of Amendment is $50.

The Certificate of Dissolution must include the name of the corporation, the date of incorporation, a statement that all debts and liabilities have been paid or provided for, a statement that all remaining assets have been distributed to shareholders and a statement that there are no pending legal actions against or involving the corporation. The filing fee for the Certificate of Dissolution is $100.

Under the old law, you had to file articles of amendment or articles of dissolution with the judge of probate in the county where the corporation’s principal office was located. The filing fees were $25 for articles of amendment and $50 for articles of dissolution.

Preemptive Rights

Preemptive rights are rights that allow existing shareholders to purchase a proportionate share of any new shares issued by a corporation before they are offered to others. This way, shareholders can maintain their percentage ownership and avoid dilution.

Under the new law, shareholders do not have preemptive rights unless they are granted by the Certificate of Incorporation. This gives more flexibility to corporations to raise capital without having to offer new shares to existing shareholders first.

Under the old law, shareholders had preemptive rights unless they were denied by the Articles of Incorporation. This could make it more difficult for corporations to attract new investors or issue new shares for other purposes.

Corporate Opportunities

A corporate opportunity is a business opportunity that belongs to a corporation or is closely related to its business. Directors and officers have a fiduciary duty to offer any corporate opportunity to their corporation before pursuing it themselves or allowing others to do so.

Under the new law, you can limit or eliminate this duty by including a provision in your Certificate of Incorporation. This can allow directors and officers to engage in other business activities without violating their fiduciary duty or risking liability.

Under the old law, there was no such provision, and directors and officers had to follow the common law rule regarding corporate opportunities.

Action by Written Consent

Action by written consent is a way for shareholders to take action without holding a meeting. This can save time and money and avoid quorum and notice requirements.

Under the new law, shareholders can take action by written consent if they have at least the minimum number of votes needed to take that action at a meeting. For example,
if a majority vote is required for an action, then shareholders holding more than 50% of the voting power can take that action by written consent.

Under the old law, shareholders could only take action by written consent if they had unanimous consent. This could make it harder for shareholders to act quickly or efficiently.

Conclusion

Alabama’s corporation laws provide the framework for forming and operating a corporation in the state. The incorporation process can be complex and requires compliance with state laws and regulations. Understanding the legal structures available and requirements for maintaining corporate status is important for any business owner considering incorporating in Alabama. Consultation with an experienced business attorney can provide guidance and ensure compliance with state law.

Deceptive Trade Practices

Alabama Deceptive Trade Practices Laws

Deceptive trade practices are any actions or statements that mislead, deceive, or defraud consumers or businesses. They can include false advertising, bait and switch, odometer tampering, pyramid schemes, and many other forms of fraud or unfair competition. Deceptive trade practices can harm consumers by causing them to pay more than they should, receive inferior or defective products or services, or lose their money or property. They can also harm honest businesses by creating an unfair advantage for dishonest competitors.

To protect consumers and businesses from deceptive trade practices, Alabama has enacted several laws that prohibit and penalize such conduct. These laws are enforced by the Attorney General, the district attorneys, and private parties who can sue for damages or injunctions. This article will provide an overview of some of the main laws that govern deceptive trade practices in Alabama.

What Constitutes Deceptive Trade Practices in Alabama?

Alabama law defines deceptive trade practices as any conduct that is likely to mislead consumers, including false advertising, bait-and-switch advertising, and misrepresentation of goods or services. Other deceptive trade practices include selling counterfeit or defective products, failing to disclose material information about a product or service, and using high-pressure sales tactics to coerce consumers into making purchases.

Penalties for Violation of Alabama Deceptive Trade Practices Laws

The penalties for violating Alabama’s deceptive trade practices laws can be severe. Violators can face fines, civil penalties, and injunctive relief. The amount of the fines and penalties varies depending on the severity of the violation and the number of violations committed. Repeat offenders may face even more severe penalties.

Legal Remedies for Consumers

Consumers who have been harmed by deceptive trade practices in Alabama may be able to pursue legal remedies. These may include filing a complaint with the Alabama Attorney General’s office, filing a lawsuit against the offending business, or joining a class-action lawsuit. Consumers who prevail in such actions may be entitled to damages, including compensation for any financial losses suffered as a result of the deceptive trade practices.

The Alabama Deceptive Trade Practices Act

The Alabama Deceptive Trade Practices Act (ADTPA) is the primary law that regulates deceptive trade practices in Alabama. It is codified in the Code of Alabama, 8-19-1 et seq. The ADTPA was enacted in 1981 with the intent to provide “a strong and effective consumer protection program to protect the interests of both the consuming public and legitimate business persons” (8-19-2).

The ADTPA defines a deceptive trade practice as “an act or practice in the conduct of any trade or commerce that is false, misleading, or deceptive” (8-19-3). The ADTPA provides a list of 25 specific examples of deceptive trade practices, such as:

Making erroneous or deceptive claims regarding the nature, provenance, cost, or accessibility of goods or services; misrepresenting the source, sponsorship, approval, or certification of goods or services; claiming that goods are brand-new when they are deteriorated, altered, reconditioned, reclaimed, used, or secondhand; claiming that goods or services have a sponsorship, approval, or certification Making false or misleading claims about the need for parts, replacements, or repair services; Misrepresenting the authority of a salesperson; disparaging the goods, services, or business of another by a false or misleading representation of fact; Advertising goods or services with the intent not to sell them as advertised; Advertising goods or services with the intent not to supply reasonably expectable public demand unless the advertisement discloses a limitation of quantity.

The list is not exhaustive, and other acts or practices may also be considered deceptive under the ADTPA.

Conclusion

Alabama’s deceptive trade practices laws are designed to protect consumers from fraudulent and misleading business practices. Businesses found to be engaging in such practices can face severe penalties, and consumers have legal remedies available to them if they are harmed by deceptive trade practices. If you believe you have been the victim of deceptive trade practices in Alabama, it is important to seek the advice of an experienced consumer protection attorney who can help you understand your legal options and potential remedies.

How to Form an LLC

How to Form an LLC in Alabama

If you are thinking of starting a business in Alabama, you might want to consider forming a limited liability company (LLC). An LLC is a popular type of business entity that offers limited liability protection and flexible tax options for its owners. In this guide, we will explain the steps and requirements for forming an LLC in Alabama.

What is an LLC?

An LLC is a hybrid business structure that combines the simplicity and flexibility of a partnership with the liability protection of a corporation. Unlike a corporation, an LLC does not have to follow strict formalities such as holding annual meetings or issuing stock certificates. Instead, an LLC is governed by an operating agreement, which is a contract among the owners (called members) that outlines how the business will be run.

An LLC can have one or more members, who can be individuals, corporations, or other entities. The members can choose how to manage the LLC: either by themselves (member-managed) or by appointing managers (manager-managed). The members can also decide how to be taxed by the IRS, either as a sole proprietorship, a partnership, a corporation, or an S corporation.

One of the main advantages of an LLC is that it provides limited liability protection for its members. This means that the members are not personally responsible for the debts and obligations of the business unless they have personally guaranteed them or have acted fraudulently or illegally. This way, the members can protect their personal assets from creditors and lawsuits.

How to Form an LLC in Alabama

Forming an LLC in Alabama involves several steps and requirements. Here is a summary of what you need to do:

1. Name your LLC.
2. Get a registered agent.
3. File your certificate of formation. 4. Draft an operating agreement.
5. Get an EIN
6. Set up business and tax accounts.

Let’s go over each step in more detail.

1. Name your LLC

The first step to forming an LLC in Alabama is to choose a unique and legally valid name for your business. Your LLC name must include the words “Limited Liability Company” or an abbreviation such as “LLC” or “L.L.C.” You also need to avoid names that are already taken by other businesses or that are misleading, confusing, or prohibited by law.

To check if your desired name is available, you can use the Secretary of State’s Government Records Inquiry System to search for existing business entities. You can also visit the archives for any businesses formed between 1949 and 2010. Once you find an available name, you need to reserve it with the Secretary of State by filing a [Name Reservation Request Form] (https://www.sos.alabama.gov/sites/default/files/form-files/domesticLLCNameReservation.pdf) for domestic LLCs or a [Foreign Name Reservation Request Form] (https://www.sos.alabama.gov/sites/default/files/form-files/foreignLLCNameReservation.pdf) (for foreign LLCs) for foreign LLCs You can file these forms online or by mail, along with a $25 filing fee.

Your name reservation will be valid for 120 days, during which you can file your certificate of formation (see step 3). If you don’t file within this period, you will have to reserve your name again.

2. Get a registered agent

A registered agent is a person or entity that agrees to receive and handle important legal documents on behalf of your LLC, such as court orders, tax notices, or service of process. Having a registered agent is required by law for every LLC in Alabama.

Your registered agent must have a physical address (not a P.O. box) in Alabama and be available during normal business hours. You can choose to be your own registered agent if you meet these criteria, or you can hire a professional service that offers registered agent services.

When you file your certificate of formation (see step 3), you will need to provide the name and address of your registered agent.

3. File your certificate of formation

The certificate of formation is the official document that creates your LLC in Alabama. It contains basic information about your business, such as its name, purpose, duration, management structure, registered agent, and members.

Your Certificate of Formation must include the following information:

– The name and address of your LLC.
– The name and address of your registered agent
– The duration of your LLC (perpetual or limited) – The purpose of your LLC
– The management structure of your LLC (member-managed or manager-managed) – The names and addresses of the initial members or managers
the signature of at least one organizer.

You need to file two copies of your Certificate of Formation and pay a filing fee that varies by county (usually between $50 and $200). You also need to send one copy and a $100 fee to the Secretary of State within 10 days after filing with the county.
Mail two copies of the form and the fee to:

Alabama Secretary of State’s Office
Attention: Business Entities Division
P.O. Box 5616
Montgomery, AL 36103

Alternatively, you can file online through the SOS online services portal (https://www.alabamainteractive.org/sos/welcome.action).

The processing time for your Certificate of Formation may vary depending on the volume of filings and the method of submission. You can check the status of your filing online or by calling (334) 242-5324.

Once your Certificate of Formation is approved, you will receive a confirmation letter and a certified copy from the Secretary of State. Congratulations! Your LLC is now officially formed in Alabama.

4. Draft an operating agreement.

An operating agreement is an internal document that outlines how your LLC will be run and managed. It covers topics such as:

The roles and responsibilities of each member; the voting rights and decision-making procedures
The profit and loss distribution and tax treatment; the admission and withdrawal of members; the dissolution and winding up of the LLC

5. Get an EIN

When forming an LLC in Alabama, one of the first steps is to obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). An EIN is a unique identifier assigned to a business for tax purposes, and it is required for the LLC to open a bank account, hire employees, and file tax returns. The process of obtaining an EIN is relatively simple and can be done online or by mail. To apply for an EIN online, go to the IRS website and complete the online application.

6. Set up business and tax accounts.

Once you have obtained an EIN for your LLC, the next step is to set up business and tax accounts. This involves opening a separate bank account for your LLC, registering for state and local taxes, and obtaining any necessary permits or licenses. It is important to keep your personal finances separate from your LLC finances, as commingling funds can result in a loss of liability protection.

To set up a business bank account, you will need to provide the bank with your LLC’s articles of organization, EIN, and any other required documentation. Registering for state and local taxes involves obtaining a sales tax permit (if applicable), registering for unemployment insurance, and obtaining any necessary business licenses.

It is important to consult with an experienced business attorney or accountant when setting up your LLC’s business and tax accounts. They can help you navigate the complex tax and regulatory landscape and ensure that your LLC is in compliance with all applicable laws and regulations.

Lemon Laws

Alabama Lemon Law

If you have bought a new car in Alabama and it turned out to be defective, you may be wondering what your rights and options are under the state’s lemon law. In this article, we will explain what the lemon law is, how it works, and what you can do to get a refund or a replacement for your lemon car.

What is the lemon law?

The lemon law is a consumer protection law that requires car manufacturers to repair or replace vehicles that have serious defects that impair their use, safety, or value. The lemon law applies only to new cars that are purchased or leased in Alabama and are still under the manufacturer’s warranty. The lemon law does not cover used cars, motor homes, or vehicles weighing over 10,000 pounds.

How do I know if my car is a lemon?

According to the Alabama lemon law, your car may be considered a lemon if:

It has been 24 months or less since the date of delivery; it has 24,000 miles or less on the odometer; it has had 3 or more attempts to repair the same defect by the manufacturer, its agent, or an authorized dealer; it has been out of service for at least 30 days in total due to the defect.

The defect must be substantial and affect the car’s performance, safety, or value. Examples of defects that may qualify as lemon law issues include engine failure, transmission problems, brake defects, steering malfunctions, electrical system failures, etc. Minor defects such as squeaks, rattles, paint chips, etc. are not covered by the lemon law.

What can I do if I have a lemon car?

If you think you have a lemon car, you should first notify the manufacturer in writing and give them a reasonable opportunity to fix the problem. You should keep all records of your purchase and repair history, including receipts, invoices, work orders, warranty documents, etc. You should also document all communications with the manufacturer, its agent, or the dealer regarding the defect.

If the manufacturer fails to repair the defect after three attempts or within 30 days of receiving your notice, you have the right to demand either a refund or a replacement for your car. The choice is yours, not the manufacturers. If you choose a refund, you are entitled to get back:

The full contract price of the car, including any additional charges
The sales tax; the title and registration fees
– Any other finance charges you may have paid

The manufacturer may deduct a reasonable amount for your use of the car before it became defective. This amount is calculated based on a formula that considers the mileage and the purchase price of the car.

If you choose a replacement, you are entitled to get a new car that is comparable to your original car in terms of make, model, options, and accessories. The manufacturer must also pay for any taxes and fees associated with the replacement.

How do I file a lemon law complaint?

If you and the manufacturer cannot agree on a refund or a replacement for your car, you may file a complaint with the Alabama Attorney General’s Office of Consumer Affairs. You can file your complaint online or by mail. You will need to provide copies of your purchase and repair documents, as well as evidence of your attempts to resolve the issue with the manufacturer.

The Attorney General’s Office will review your complaint and try to mediate between you and the manufacturer. If mediation fails or is not available, you may have to pursue legal action against the manufacturer in court. You have 3 years from the date of delivery of your car to file a lawsuit under the lemon law.

Where can I get more information?

For more information about the Alabama lemon law, you can visit the following websites:

– [Alabama Lemon Laws | DMV.ORG](https://www.dmv.org/al-alabama/automotive-law/lemon-law.php)
– [A Guide To The AL Lemon Law ǀ DMV.com](https://www.dmv.com/al/alabama/lemon-law)
– [STANDARDS OF THE ALABAMA LEMON LAW](https://www.auto.bbbnp.org/docs/lemon-law-summaries/AL-LLsummary.pdf)

You can also contact the Alabama Attorney General’s Office of Consumer Affairs at (800) 392-5658 or consumerinterest@ago.state.al.us.

Alabama Criminal Laws

Gun Control Laws

Marijuana Laws

Alabama Marijuana Laws: Is weed legal in Alabama?

Marijuana is a popular but controversial drug that has different legal statuses across the United States. Some states have legalized recreational and/or medical marijuana use, while others have not. Alabama is one of the states that has not legalized recreational marijuana use and has only recently legalized medical marijuana use for registered patients in May 2021.

Possession

Possession of marijuana means having it on your person or under your control. In Alabama, possession of marijuana can be classified into two categories: first-degree and second-degree.

First-degree possession is a Class C felony that can result in 1–10 years in prison and up to a $15,000 fine. You can be charged with first-degree possession if you possess marijuana for something other than personal use or if you possess marijuana for personal use after a previous conviction for unlawful possession of marijuana.

Second-degree possession is a Class A misdemeanor that can result in up to a year in jail and a $6,000 fine. You can be charged with second-degree possession if you possess marijuana for personal use and have no prior convictions for unlawful possession of marijuana.

Sale

The sale of marijuana means selling, delivering, or distributing it to another person. In Alabama, the sale of marijuana is a Class B felony that can result in 2–10 years in prison and up to a $30,000 fine.

However, there are some aggravating factors that can increase the penalty for the sale of marijuana. For example, if you are an adult over 18 and you sell marijuana to a child under 18, you can be charged with a Class A felony that can result in 10-99 years or life imprisonment and up to a $60,000 fine. Also, if you sell marijuana within 3 miles of a public or private school or university, you can receive an additional penalty of 5 years in prison, during which you cannot receive probation.

Trafficking

Trafficking in marijuana means selling, cultivating, or transporting large amounts of it. In Alabama, trafficking marijuana is also a Class A felony, but the mandatory minimum sentences are based on the amount of marijuana trafficked.

– For one to 100 lbs., the minimum is 3 years, and there is a mandatory $25,000 fine.
For 100-500 lbs., the minimum is 5 years and a $50,000 fine.
For 500-1000 lbs., the minimum is 15 years and a $200,000 fine.
– For those who weigh over 1000 lbs., the penalty is life imprisonment without the possibility of parole.

In addition, under the Alabama Drug Trafficking Enterprise Act, a person who manages at least five people and gets a substantial income from the marijuana trade faces higher fines and longer minimum sentences.

Medical Use

Medical use of marijuana means using it to treat certain medical conditions with a doctor’s recommendation. In Alabama, the medical use of marijuana was legalized in May 2021 for registered patients who suffer from one or more of the qualifying conditions listed in the law. Some of these conditions include cancer, epilepsy, chronic pain, PTSD, autism spectrum disorder, and terminal illness.

The only legal form of marijuana in Alabama for medical use is CBD, or cannabidiol, which is a compound in cannabis that has medical effects without the THC to get you high. Patients who qualify for the medical use of marijuana can obtain CBD oil from licensed dispensaries or pharmacies with a valid medical cannabis card.

The law also provides some protections for patients who use medical marijuana from criminal prosecution and discrimination by employers or landlords. However, patients who use medical marijuana are still subject to some restrictions and regulations regarding dosage, possession limits, transportation, and consumption methods.

Child Abuse

Alabama Child Abuse Laws:

Child abuse is a serious crime that can have devastating consequences for the victims and their families. In Alabama, child abuse is any harm or threat of harm to a child’s health or welfare caused by non-accidental physical or mental injury, sexual abuse, or exploitation of a child. Child abuse can be committed by a parent, guardian, or any other person who has the care or custody of a child.

What Constitutes Abuse?

According to Alabama Code Title 26, Chapter 15, child abuse is any harm or threatened harm to a child’s health or welfare through non-accidental physical or mental injury or the sexual abuse or exploitation of a child. Sexual abuse or exploitation includes any involvement of a child in sexual activity to provide sexual gratification or financial benefit to the perpetrator.

Some examples of child abuse are:

hitting, kicking, punching, burning, or otherwise physically harming a child;
exposing a child to domestic violence or substance abuse;
neglecting a child’s basic needs for food, clothing, shelter, education, or medical care;
emotionally abusing a child by belittling, threatening, isolating, or rejecting them.
forcing a child to engage in sexual acts or exposing them to pornography;
trafficking a child for sexual purposes or labor

What Is Prohibited?

Alabama law prohibits anyone who is a responsible person from torturing, willfully abusing, cruelly beating, or otherwise willfully maltreating a child under 18. A responsible person is defined as a child’s natural parent, stepparent, adoptive parent, legal guardian, custodian, or any other person who has the permanent or temporary care or custody of or responsibility for the supervision of a child.

Child abuse is a Class C felony that can be punished by 1 to 10 years in prison and up to a $15,000 fine. The crime is increased to aggravated child abuse for occurring on more than one occasion, in violation of a court order, or causing serious physical injury to the child. Aggravated child abuse is a Class B felony that can be punished by 2–20 years in prison and up to a $30,000 fine.

Who Is Required to Report Child Abuse?

Alabama law requires anyone who comes into regular contact with children, such as teachers, daycare workers, cops, social workers, nurses, doctors, chiropractors, dentists, clergy (unless told under privilege such as confession), or anyone else who could help aid or provide medical care to a child, to report any known or suspected child abuse. These people are called mandatory reporters, and they have a legal duty to report any signs of abuse they observe or are told about.

How to Report Child Abuse

Reporting child abuse in Alabama is easy and confidential. You can contact your county Department of Human Resources office and tell them what you saw. You can also call 911 in an emergency. You do not need to have proof of abuse to make a report. You only need to have reasonable cause to believe that a child is being abused or neglected.

When you make a report, you should provide as much information as possible about the child, the alleged abuser, and the nature and extent of the abuse. You should also provide your name and contact information unless you wish to remain anonymous. However, anonymous reports may be harder to investigate and follow up on.

What Are the Penalties for Failure to Report or False Reporting?

Knowingly failing to report child abuse is a misdemeanor that carries a possible $500 fine or up to 6 months in jail. It is also a crime for a parent or guardian to fail to report a missing child with reckless disregard for the child’s safety.

On the other hand, making a false report of child abuse is also a misdemeanor that carries a penalty of up to $500 in fines or up to 6 months in jail. A false report is one that is made with malicious intent or with the knowledge that it is false.

Alabama Employment Laws

Minimum Wage Laws

Minimum Wage Laws in Alabama

If you are an employee or an employer in Alabama, you might be wondering what the minimum wage laws are in your state. In this article, we will explain the current minimum wage rate, the overtime pay requirements, and the exemptions that apply to some workers and businesses in Alabama.

What is the minimum wage rate in Alabama?

Alabama does not have its own separate minimum wage law. Employers in the state must pay at least $7.25 per hour, as required under federal law . This is the same as the current federal minimum wage rate, which was last changed in 2009.

The minimum wage applies to most employees in Alabama, with limited exceptions including tipped employees, some student workers, and other exempt occupations. Alabama employers may not pay you under $7.25 per hour unless you or your occupation are specifically exempt from the minimum wage under state or federal law.

What are the overtime pay requirements in Alabama?

Alabama does not have its own overtime law either. Therefore, the federal Fair Labor Standards Act (FLSA) governs the overtime pay requirements for most employees and employers in Alabama. The FLSA requires employers to pay employees at least one and a half times their regular rate of pay for all hours worked over 40 in a workweek.

Some states also have daily overtime limits, which require employers to pay overtime for hours worked over a certain number of hours in a day. However, Alabama does not have a daily overtime limit, so only the weekly limit of 40 hours applies.

The FLSA also provides some exemptions from the overtime pay requirements for certain employees and employers, such as executive, administrative, professional, outside sales, and computer employees; seasonal and recreational establishments; small newspapers; and agricultural workers. Alabama does not have any additional exemptions from the overtime pay requirements.

How can I learn more about the minimum wage and overtime laws in Alabama?

If you have questions about the minimum wage or overtime laws in Alabama, you can contact the U.S. Department of Labor’s Wage and Hour Division (WHD), which enforces the FLSA in Alabama. The WHD has offices in Birmingham and Mobile, and you can find their contact information on their website: https://www.dol.gov/agencies/whd/contact/local-offices#alabama

You can also visit the WHD’s website to learn more about your rights and responsibilities under the FLSA: https://www.dol.gov/agencies/whd/flsa

Alternatively, you can consult a private attorney who specializes in employment law if you need legal advice or representation regarding a minimum wage or overtime issue.

Conclusion

Alabama does not have its own minimum wage or overtime laws, so the federal laws apply to most employees and employers in the state. The current minimum wage rate is $7.25 per hour, and the overtime pay rate is one and a half times the regular rate of pay for hours worked over 40 in a workweek. There are some exemptions from these requirements for certain workers and businesses under state or federal law. If you want to learn more about the minimum wage and overtime laws in Alabama, you can contact the WHD or a private attorney for assistance.

References:

https://www.dol.gov/agencies/whd/minimum-wage/state
https://www.resourcefulcompliance.com/alabama
https://www.minimum-wage.org/alabama

Pay Day Rules

Pay Day Rules in Alabama

If you work or run a business in Alabama, you may wonder what the rules and regulations are regarding when and how often employees must be paid. Unlike many other states, Alabama does not have specific laws that mandate a minimum frequency or regularity of paydays for most workers. However, there are some general guidelines and exceptions that you should be aware of. Here is an overview of the state payday rules in Alabama.

No Payday Regulations for Most Employees

According to the U.S. Department of Labor, Alabama is one of the two states (the other being Florida) that do not have any regulations or specifications for how often employers must pay their employees. This means that employers have the flexibility to set their own pay periods and paydays, as long as they give written notice to their employees about the terms and conditions of payment.

However, this does not mean that employers can withhold or delay wages indefinitely. Under Alabama Code Section 25-3-4, employers must pay all wages due to their employees within a reasonable time after they are earned. The law does not define what constitutes a reasonable time, but it may depend on factors such as the industry, the occupation, the contract, and the custom.

If an employer fails to pay wages within a reasonable time, the employee may file a complaint with the Alabama Department of Labor or sue the employer in court for the amount owed plus interest and attorney fees.

Exceptions for Certain Types of Employees

While most employees in Alabama are not covered by any payday regulations, there are some exceptions for certain types of workers who are subject to different rules.

Farm labor contractors: According to Alabama Code Section 25-8-36, farm labor contractors must pay their employees at least once a week on a designated business day. The payment must be made in cash or by check payable on demand without discount at a bank or other place convenient to the place of employment.
Public employees: According to Alabama Code Section 36-26-36, state officers and employees must be paid at least once a month on a regular payday established by the State Personnel Board. The payment must be made by direct deposit or electronic funds transfer to the employee’s bank account.
Executive, administrative, or professional personnel: According to the U.S. Department of Labor, employers may pay these employees on a monthly basis, as they are exempt from the federal Fair Labor Standards Act (FLSA), which requires weekly or biweekly payments for most workers.

Payday Lending Laws in Alabama

Another aspect of payday rules in Alabama is the regulation of payday loans, which are short-term, high-interest loans that are typically due on the borrower’s next payday. Payday loans are legal in Alabama, but they are subject to certain limitations and restrictions under the Alabama Deferred Presentment Services Act.

Some of the payday lending laws in Alabama are:

Maximum loan amount: $500
Minimum loan amount: $100
Maximum loan term: 31 days
Minimum loan term: 10 days
Maximum APR: 456.25%
Maximum finance charges: 17.5% of the amount borrowed

Borrowers can have only one payday loan at a time and cannot roll over or renew their loans more than once. Lenders must check a statewide database before issuing a new loan to ensure that the borrower does not have any outstanding loans. Lenders must also provide a written agreement that discloses all the terms and fees of the loan and obtain the borrower’s signature and thumbprint.

If a borrower fails to repay a payday loan on time, the lender can charge a one-time fee of $30 for insufficient funds, initiate collection actions, or sue the borrower in court. However, lenders cannot threaten or pursue criminal charges against borrowers who default on their loans.

Conclusion

State payday rules in Alabama are relatively lax compared to other states, as most employers and employees do not have to follow any specific laws regarding how often and when wages must be paid. However, there are some exceptions for certain types of workers who are subject to different rules, and there are also laws that regulate payday loans in Alabama. If you have any questions or concerns about your rights or obligations as an employer or employee in Alabama, you should consult a lawyer.

Alabama Estate Planning Laws

Wills

A will is a legal document that allows you to express your wishes about how your property and assets will be distributed after your death. A will can also name a guardian for your minor children, a personal representative for your estate, and a trustee for any trusts you create. Making a will can give you peace of mind and avoid potential conflicts among your heirs.

How do you make a valid will in Alabama? What are the legal requirements and formalities that you need to follow?

Legal Requirements for a Will in Alabama

According to the Code of Alabama, Title 43, Chapter 8, Article 7, there are some basic requirements that you need to meet to make a valid will in Alabama. These are:

You must be at least 18 years old or an emancipated minor. Emancipated minors are those who have been legally freed from their parents’ control by a court order or marriage.
You must be of sound mind. This means that you must have the mental capacity to understand the nature and extent of your property, the people who would inherit from you if you died without a will, and the effect of your will.
You must sign your will or direct someone else to sign it for you in your presence. If someone else signs your will for you, they cannot be counted as one of the witnesses.
You must have two competent witnesses who sign your will in your presence and in the presence of each other. Competent witnesses are those who are not mentally incapacitated or under undue influence. They do not have to be disinterested, meaning that they can be beneficiaries of your will, but this may raise questions about their credibility.

Types of Wills in Alabama

There are different types of wills that you can make in Alabama, depending on how you write and execute them. These are:

A written will. This is the most common type of will, which is typed or printed on paper and signed by you and two witnesses. A written will can be either attested or self-proved.
An attested will. This is a written will that is signed by you and two witnesses but not notarized or verified by an affidavit. An attested will needs to be proved in court before it can be accepted for probate.
A self-proving will. This is a written will that is signed by you and two witnesses and also notarized or verified by an affidavit. A self-proved will does not need to be proved in court and can be accepted for probate more easily.
A hologram will. This is a handwritten will that is signed by you but not witnessed. Alabama does not recognize holographic wills as valid unless they are also attested by two witnesses.
An oral or nuncupative will. This is a spoken will that is made by you in front of two witnesses who can testify to its contents. Alabama does not recognize oral or nuncupative wills as valid except in very limited circumstances, such as when you are in imminent danger of death.

Tips for Making a Will in Alabama

A will is a legal document that allows you to express your wishes regarding how your property and assets will be distributed after your death. It also lets you name a person to manage your estate and appoint guardians for your minor children if you have any. Making a will can give you peace of mind and avoid potential conflicts among your heirs.

If you are a resident of Alabama and want to make a will, here are some tips to help you get started.

1. Decide what you want to include in your will.

You can use your will to leave your real estate, personal property, bank accounts, investments, life insurance policies, and other assets to your chosen beneficiaries. You can also use your will to disinherit someone who would otherwise inherit from you by law, such as a spouse or a child. However, you cannot use your will to leave property that is jointly owned with someone else, such as a house or a car, or property that has a designated beneficiary, such as a retirement account or a trust.

2. Choose your beneficiaries and alternates.

You can name anyone you want as a beneficiary of your will, such as family members, friends, charities, or organizations. You can also specify how you want your property to be divided among them, such as equally, proportionally, or according to specific amounts or items. You should also name alternate beneficiaries in case your primary beneficiaries die before you or cannot inherit from you for some reason.

3. Choose an executor and an alternate.

The executor is the person who will be responsible for carrying out the instructions in your will, such as paying your debts and taxes, collecting and distributing your assets, and filing the necessary paperwork with the court. You should choose someone who is trustworthy, competent, and willing to take on this role. You should also name an alternate executor in case your primary executor dies before you or cannot serve for some reason.

4. Choose guardians and alternates for your minor children.

If you have minor children (under 18 years old) and you want to name someone to take care of them and their property after your death, you can do so in your will. You should choose someone who is capable, reliable, and willing to raise your children according to your wishes. You should also name alternate guardians in case your primary guardians die before you or cannot serve for some reason.

5. Find an estate planning attorney or use a do-it-yourself software program.

Depending on the complexity of your situation and your preferences, you can either hire an estate planning attorney to draft your will for you or use a reputable online software program to create it yourself. An attorney can provide you with legal advice and guidance, ensure that your will complies with Alabama laws, and help you avoid potential errors or challenges. A software program can offer you convenience and affordability, but it may not cover all the aspects of your situation or provide you with legal support.

6. Sign your will in front of two witnesses.

In Alabama, you must sign your will at the end of the document in front of two witnesses who are generally competent and not beneficiaries of your will. The witnesses must also sign the will in front of you and each other. Although not required by law, it is recommended that you also sign your will in front of a notary public who can verify your identity and the validity of the signatures.

7. Store your will in a safe place.

You should keep your original will in a safe and accessible place where it can be easily found after your death. You can also make copies of your will and give them to trusted people, such as your executor, attorney, or family members. However, do not keep your will in a bank safe deposit box unless someone else has access to it.

8. Review and update your will periodically.

You should review your will at least once every few years or whenever there are significant changes in your life or circumstances that may affect it, such as marriage, divorce, the birth of children or grandchildren, the death of beneficiaries or executors, relocation to another state, the acquisition or disposal of property or assets, changes in tax laws, etc. If you need to make any changes to your will, you can either make a new one that revokes the old one or make an amendment called a codicil that modifies only certain parts of the old one.

Power of Attorney

Power of Attorney Laws in Alabama:

A durable power of attorney is a legal document that allows you to appoint someone you trust, referred to as an agent or attorney-in-fact, to make decisions on your behalf if you become incapacitated or unable to make decisions for yourself. In Alabama, the laws surrounding durable power of attorney are established under the Alabama Uniform Power of Attorney Act, which outlines the requirements and guidelines for creating a valid and enforceable durable power of attorney.

Types of Durable Power of Attorney in Alabama

Under Alabama law, there are two types of durable power of attorney: a general power of attorney and a healthcare power of attorney. A general power of attorney grants your agent the authority to manage your financial and legal affairs, while a healthcare power of attorney grants your agent the authority to make healthcare decisions on your behalf.

Requirements for a Valid Durable Power of Attorney

In Alabama, a durable power of attorney must meet certain requirements to be valid and enforceable. Firstly, the document must clearly state that it is a durable power of attorney and that it remains in effect even if you become incapacitated. Additionally, it must be signed by you in the presence of two witnesses who are not related to you or named as agents in the document.

Your agent must also sign the document, acknowledging their responsibilities and agreeing to act in your best interests. Finally, the document must be notarized by a notary public.

The Role of the Agent

Your agent is responsible for managing your affairs and making decisions on your behalf if you become incapacitated. They are obligated to act in your best interests and make decisions that align with your wishes, as outlined in the document. Your agent must also keep accurate records of their actions and decisions and provide regular updates to you or your designated representatives.

Revoking a Durable Power of Attorney

If you wish to revoke a durable power of attorney in Alabama, you must do so in writing and provide a copy of the revocation to your agent and any relevant parties, such as financial institutions. You may also need to file the revocation with the probate court in your county.

Final Thoughts

A durable power of attorney is an essential legal document that ensures your affairs will be managed according to your wishes if you become incapacitated. If you are considering creating a durable power of attorney in Alabama, it is important to consult with an experienced attorney who can guide you through the process and ensure that your document meets all the legal requirements.

Alabama Family Laws

Minors and the Law

Minors and the Law in Alabama

If you are under 19 years old in Alabama, you are considered a minor in the eyes of the law. This means that you have certain rights and responsibilities that are different from those of adults. In this blog post, we will summarize some of the key aspects of Alabama law that affect minors, such as the age of majority, emancipation, contracts, lawsuits, and medical consent.

What is the age of majority in Alabama?

The age of majority is the legal age at which a person is considered an adult and can make their own decisions without parental consent or interference. In most states, the age of majority is 18, but in Alabama, it is 19. This means that until you turn 19, you are still subject to your parents’ or guardians’ authority and supervision. For example, you cannot vote, marry, or join the military without their permission.

However, there are some exceptions to the age of majority in Alabama. For instance, if you are 17 years old and want to take out an educational loan, you can do so without parental consent. Similarly, if you are a member of any branch of the armed forces, you can contract with a bank or a similar institution without parental consent. These exceptions are meant to facilitate your education and financial independence.

What is emancipation, and how can I get it?

Emancipation is a legal process that allows a minor to become an adult before reaching the age of majority. An emancipated minor has all the rights and responsibilities of an adult, such as living on their own, managing their own money, and making their own medical decisions. Emancipation also frees the minor from their parents’ or guardians’ control and obligations.

In Alabama, you can become emancipated in two ways: by operation of law or by court order. By operation of law, you automatically become emancipated if you are 18 years old, married, or widowed. You do not need to take any formal action to be emancipated in this case.

By court order, it means that you have to petition a juvenile court to grant you emancipation. You can do this if you are 18 years old but not yet 19, and if emancipation is in your best interest. You will have to prove that you have a place to live, a legal source of income, and a good reason to be emancipated. The court will also consider your parents’ or guardians’ opinion and may appoint a guardian ad litem to represent your interests.

Can I enter into contracts as a minor?

A contract is a legally binding agreement between two or more parties. Generally, minors cannot enter into contracts because they are not considered capable of understanding and consenting to the terms and consequences of the agreement. However, there are some exceptions to this rule in Alabama.

One exception is that minors who are 15 years old or older can contract for life, health, accident, and annuity insurance. This means that they can buy insurance policies for themselves or others without parental consent. However, they are not obligated to pay any premiums that they have not yet paid.

Another exception is that minors can consent to any medical services that are legally authorized in Alabama. This includes services related to pregnancy, venereal disease, drug dependency, alcohol toxicity, or any reportable disease. This means that minors can seek treatment for these conditions without parental consent or notification.

Can I sue or be sued as a minor?

A lawsuit is a legal action that involves a dispute between two or more parties over their rights or obligations. Generally, minors cannot sue or be sued because they are not considered competent to participate in legal proceedings. However, there are some ways that minors can be involved in lawsuits in Alabama.

One way is that minors can sue through a personal representative, next friend, or guardian ad litem. A personal representative is someone who acts on behalf of the minor’s estate or interests. A next friend is someone who acts on behalf of the minor’s welfare or best interest. A guardian ad litem is someone who is appointed by the court to represent the minor’s legal rights and interests.

Another way is that minors can be sued by their parents or guardians for damages caused by their wrongful acts. For example, if a minor damages someone else’s property or injures someone else’s person, their parents or legal guardians could be sued in court.

Consent to Medical Treatment in Alabama

In Alabama, the age of majority is 19, which means that minors under 19 are generally subject to their parents’ authority and cannot make their own decisions regarding education, marriage, or other matters. However, there are some exceptions that allow minors to consent to medical treatment without parental involvement.

According to Alabama law, a minor who is 14 or older, has graduated from high school, is married or divorced, or is pregnant may consent to any medical, dental, health, or mental health services. This includes contraceptive services, prenatal care, substance abuse treatment, and sexually transmitted infection testing and treatment.

A minor may also consent to emergency treatment if the delay caused by obtaining parental consent would endanger the minor’s life or health. Minors who consent to medical treatment have the same rights and responsibilities as adults regarding their medical records and confidentiality. Healthcare providers who treat minors with their consent are not liable for civil damages or criminal prosecution as long as they act in good faith and with reasonable care.

Child Custody

Alabama Divorce Laws

Divorce Laws

Click here to see the complete page on Divorce Laws in Alabama.

Alabama Health Care Laws

Euthanasia

Euthanasia Law in Alabama

Euthanasia, also known as mercy killing or assisted dying, is the act of intentionally ending someone’s life to relieve their suffering from a terminal or incurable illness. Euthanasia is illegal in most countries, including the United States, where it is considered a form of murder. However, some states have legalized physician-assisted suicide, which is a type of euthanasia where a doctor prescribes lethal drugs to a patient who then takes them by themselves.

Euthanasia is prohibited and punishable in Alabama.

According to Alabama law, euthanasia is not condoned or authorized, nor is any affirmative act or omission allowed to end life other than to permit the natural process of dying. In Alabama, anyone who intentionally causes the death of another person is regarded as a murderer, even if they act out of compassion (based on common law). A life sentence in prison or even the death penalty could result from this.

Physician-assisted suicide is also strictly prohibited in Alabama. This means that doctors cannot prescribe or provide lethal drugs to patients who want to end their lives. Doing so would be considered assisting suicide, which is a felony punishable by up to 10 years in prison.

Patients Have the Right to Refuse Life-Sustaining Treatment in Alabama

While euthanasia and physician-assisted suicide are illegal in Alabama, patients do have the right to refuse or withdraw life-sustaining treatment if they are terminally ill or permanently unconscious. This does not constitute euthanasia or assisting suicide but rather allowing the natural process of dying.

Patients can express their wishes regarding end-of-life care through two legal documents: a living will and a durable power of attorney for health care. A living will is a written statement that specifies what kind of medical treatment a patient wants or does not want if they become unable to communicate or make decisions. A durable power of attorney for health care is a document that appoints a trusted person to make health care decisions on behalf of the patient if they become incapacitated.

Both documents must be signed by the patient and witnessed by two adults who are not related to the patient or involved in their health care. The documents must also comply with the requirements of the Alabama Natural Death Act, which is the state law that governs living wills and durable powers of attorney for health care.

How does Alabama compare to other states?

Alabama is one of the 39 states that have banned euthanasia and physician-assisted suicide. The other 11 states (plus Washington, D.C.) have legalized some form of death with dignity, either through legislation or court rulings. These states are:

California, Colorado, Hawaii, Maine, Montana, New Jersey, New Mexico, Oregon, Vermont, Washington, and Washington, D.C.

In these states, terminally ill patients who meet certain criteria can request and obtain prescription drugs from their doctors to end their lives peacefully and painlessly. The criteria vary by state but generally include:

– Being an adult (18 years of age or older).
– Having a terminal diagnosis (six months or less to live)
– Being mentally competent (able to make and communicate health care decisions)

Every state is different, and local laws must be reviewed individually.

Living Wills

Living Wills Law in Alabama:

A living will is a legal document that expresses your wishes regarding medical treatment when you are unable to communicate them yourself due to a terminal illness or permanent unconsciousness. A living will can help you avoid unwanted interventions that may prolong your suffering or go against your values. It can also reduce the burden on your family and health care providers by giving them clear guidance on what you want.

In Alabama, living wills are governed by the Alabama Natural Death Act, which was enacted in 1981 and amended in 1997. This law sets forth the requirements and procedures for creating, revoking, and enforcing a living will in Alabama. Here are some of the key points you need to know about living wills law in Alabama:

Who can make a living will in Alabama?

To make a valid living will in Alabama, you must be:

A competent adult is one who is at least 19 years old and has the mental capacity to understand and appreciate the consequences of their decisions.
acting voluntarily, without any coercion or undue influence from anyone else.

How do I make a living will in Alabama?

To make a valid living will in Alabama, you must:

Write it down, either by yourself or with the help of a lawyer or another person. Sign it in front of two or more witnesses who are also adults and not related to you by blood or marriage, not your heirs or beneficiaries, not your health care providers or employees, and not your appointed health care agent (if any).
Date it.

You can use the statutory form provided by the Alabama Natural Death Act or any other form that substantially complies with the law. You can also include any specific instructions or preferences that reflect your personal values and beliefs.

What can you include in your living will in Alabama?

In your living will, you can state whether you want or don’t want any of the following life-sustaining treatments if you have a terminal illness or a permanent state of unconsciousness:

Artificial nutrition and hydration (such as feeding tubes or intravenous fluids)
Cardiopulmonary resuscitation (CPR)
Mechanical ventilation (such as a respirator or a breathing machine)
Dialysis (a procedure that filters your blood when your kidneys fail)
Surgery or invasive procedures
Antibiotics or other medications
Blood transfusions Any other medical procedure or intervention that serves only to prolong the dying process or maintain you in a state of permanent unconsciousness

You can also specify any exceptions or limitations to your choices, such as allowing certain treatments for a limited period of time or under certain conditions.

You can also indicate whether you want to donate your organs or tissues after your death and whether you want to be buried or cremated.

How do you revoke your living will in Alabama?

You can revoke your living will at any time and in any way that shows your intent to do so. Some of the ways you can revoke your living will are:

Destroying the document (such as by burning, tearing, or defacing it).
Writing a signed and dated statement that says you revoke your living will
Telling an adult witness verbally that you revoke your living will (the witness must then write down your statement and sign it).
Making a new living will that is inconsistent with the old one

You should notify your family, health care agent (if any), and health care providers of your revocation as soon as possible.

How do you enforce your living will in Alabama?

Your living will becomes effective when your attending physician determines that you have a terminal illness or injury or that you are in a persistent vegetative state. Your physician must then follow your wishes as stated in your living will, unless he or she has a reasonable belief that they are contrary to your best interests or medical ethics. If your physician is unwilling or unable to comply with your living will, he or she must transfer you to another physician who is willing and able to do so.

Your physician must also inform your agent, if you have one, and your family members of your condition and your living will. Your agent has the authority to make health care decisions for you according to your living will and your best interests. Your family members have the right to challenge the validity of your living will or the decisions of your agent in court.

To ensure that your living will is followed by your health care providers, you should:

Give copies of your living will to your family, your health care agent (if any), your primary physician, and any other health care providers who may be involved in your care.
Carry a card or a bracelet that indicates that you have a living will and where it can be found.
Review and update your living will periodically to make sure it reflects your current wishes and circumstances.

If your healthcare providers refuse to honor your living will for any reason, they must:

Inform you (if possible) and your family or health care agent (if any) of their refusal.
Provide continuing care until you can be transferred to another healthcare provider who is willing to comply with your living will.
Assist in arranging for another healthcare provider

How to Recognize a Living Will from Another State

Alabama law recognizes living wills that are executed in other states, as long as they comply with the laws of those states. However, if there is a conflict between the laws of Alabama and those of another state regarding the interpretation or enforcement of a living will, Alabama law prevails.

Medical Records and Privacy

Medical Records and Privacy Law in Alabama:

If you live in Alabama and have ever visited a doctor, hospital, or other health care provider, you have a medical record. A medical record is a collection of information about your health history, diagnosis, treatment, and progress. Your medical record is important for your current and future healthcare needs, as well as for insurance, employment, and other purposes. But who can access your medical record, and how can you protect your privacy?

Your Rights to Your Medical Record

As a patient, you have certain rights to your medical record under both federal and state laws. The federal law that protects your medical record privacy is called the HIPAA Privacy Rule. HIPAA stands for the Health Insurance Portability and Accountability Act. The HIPAA Privacy Rule sets standards that apply to records held by healthcare providers across the nation. It gives you the right to:

See and get a copy of your medical record;
request corrections or additions to your medical record;
get a notice of how your health information is used and shared;
choose how and with whom your health information is shared;
file a complaint if you think your privacy rights have been violated.

Alabama also has laws that tell providers how they should handle medical records. Alabama law sets some standards for records held by doctors and hospitals within the state. Most healthcare providers must follow both the HIPAA Privacy Rule and state law. If a standard in Alabama law conflicts with a standard in the HIPAA Privacy Rule, your healthcare provider must follow the law that is most protective of your rights.

Some of the rights that Alabama law gives you are:

The right to get a copy of your medical record within 30 days of your request.
The right to request a summary of your medical record instead of a full copy (when the record is in paper form and you waive your right to a full copy).
The right to be charged a reasonable fee for copying and mailing your medical record;
The right to have your medical record kept confidential and not disclosed without your written consent (except in certain situations);

When Your Medical Record Can Be Shared Without Your Consent

There are some situations when your healthcare provider can share your medical record without your consent. These situations are usually related to public health, safety, or legal purposes. For example, your healthcare provider can share your medical record without your consent when:

As required by law or court order: reporting certain diseases or injuries to public health authorities
Reporting child abuse or neglect or domestic violence or elder abuse (if you agree or if necessary to prevent serious harm)
Reporting information for health oversight activities (such as audits, inspections, or investigations)
Reporting information for research purposes (if approved by an ethics board and with certain safeguards)
Reporting information for workers’ compensation claimsreporting
information for organ donation or transplantation; reporting information for emergency treatment or disaster relief

In these situations, your healthcare provider must share only the minimum amount of information necessary for the purpose.

How to Access, Correct, or Transfer Your Medical Record

If you want to access, correct, or transfer your medical record, you need to follow the procedures set by your healthcare provider. You may need to fill out a form, show identification, pay a fee, or provide other information. You should contact your healthcare provider directly and ask about their policies and procedures.

If you want to see or get a copy of your medical record, you have the right to do so within 30 days of your request. If your healthcare provider denies your request, they must give you a written explanation and tell you how to appeal their decision.

If you want to correct or add information to your medical record, you have the right to do so within 60 days of your request. You may need to provide supporting documents or evidence for your correction or addition. If your healthcare provider agrees with your request, they must make the changes and notify you. If they disagree with your request, they must tell you why and let you submit a statement of disagreement that will be added to your record.

If you want to transfer your medical record to another healthcare provider or person, you have the right to do so with your written consent. You may need to specify what parts of your record you want to transfer and pay a reasonable fee for copying and mailing.

Alabama Statutes of Limitations

Civil Statutes of Limitations

Criminal Statutes of Limitations

Alabama Real Estate Laws

Adverse Possession

Homestead Laws

Leases and Rental Agreements

Alabama Tax Laws

Income Tax

Income Tax Laws in Alabama:

Alabama is one of the states in the United States that impose a state income tax on its residents. Alabama’s personal income tax law can be complex, and understanding the law is important for all taxpayers.

Overview of Alabama Income Tax

The state of Alabama imposes a graduated income tax on the income of individuals and entities in the state. The income tax rates range from 2% to 5% based on taxable income. Alabama’s income tax law is based on the federal income tax law, but there are differences in the deductions and exemptions allowed.

Alabama Income Tax Rates

Alabama’s income tax rates are progressive, meaning that the tax rate increases as the taxable income increases. Below are the current income tax rates for individuals and corporations:

For individuals:

2% on the first $1,000 of taxable income
4% on taxable income between $1,001 and $6,000
5% on taxable income over $6,000

For corporations:

6.5% on net income up to $1,000,000
7.5% on net income over $1,000,000

Alabama Income Tax Deductions and Exemptions

There are several deductions and exemptions available to taxpayers in Alabama. Some of the common deductions and exemptions are:

Standard Deduction: The standard deduction is $2,500 for single filers, $5,000 for married couples filing jointly, and $1,500 for married couples filing separately.

Personal Exemptions: Alabama allows a personal exemption of $1,500 for each taxpayer and dependent.

Retirement Income: Alabama allows taxpayers over the age of 65 to exclude up to $7,500 of retirement income from their taxable income.

Charitable Contributions: Taxpayers can deduct up to 50% of their charitable contributions on their Alabama income tax return.

Filing Alabama Income Tax Return

All residents of Alabama who earned income in the state or outside of the state are required to file an Alabama income tax return. Non-residents who earned income in Alabama are also required to file an income tax return.

The deadline for filing an Alabama income tax return is April 15th for individuals and corporations. Extensions can be requested, but payment of taxes owed is still due by April 15th.

Conclusion

Alabama’s income tax law can be complex, and understanding the law is important for all taxpayers. The state’s graduated tax rates, available deductions and exemptions, and filing requirements all play an important role in the tax calculation process. Taxpayers should consult with a tax professional or refer to the Alabama Department of Revenue’s website for more information on the state’s income tax laws.

Gambling Tax

Gambling Tax Law in Alabama:

Gambling is a popular pastime for many people, but it can also have tax implications. If you are a resident of Alabama or plan to visit the state and engage in some gambling activities, you should be aware of the gambling tax law in Alabama and how it affects your winnings. Here are some key points to keep in mind:

Gambling winnings are taxable income. According to the Internal Revenue Service (IRS), gambling winnings are fully taxable and must be reported on your federal income tax return, regardless of the amount or source. This includes winnings from casinos, lotteries, horse races, dog races, sweepstakes, game shows, and any other form of gambling. You may also have to report your gambling winnings to the state of Alabama, depending on the type and amount of your winnings.
Gambling losses may be deductible. The IRS allows you to deduct your gambling losses from your gambling winnings, but only up to the amount of your winnings. You cannot deduct more than you win or claim a net loss from gambling. To claim this deduction, you must itemize your deductions on Schedule A of Form 1040 and keep a detailed record of your gambling activities, such as receipts, tickets, statements, or other proof of your winnings and losses.
Gambling devices are illegal in Alabama. The state of Alabama has a strict ban on gambling devices, such as slot machines, roulette wheels, craps tables, or any other device used for gambling purposes. Possessing or operating a gambling device is a Class A misdemeanor punishable by up to one year in jail and a fine of up to $6,000. The only exception is for federally recognized tribes that operate casinos on their lands under the Indian Gaming Regulatory Act.
Gambling venues are limited in Alabama. The state of Alabama does not allow casinos or online gambling, except for those operated by federally recognized tribes. The only other forms of legal gambling in Alabama are pari-mutuel betting on horse and dog races and charitable bingo games. However, these activities are subject to local regulations and licensing requirements. For example, only cities with a population of 300,000 or more can authorize horse or dog racing by referendum.
Gambling taxes vary by jurisdiction. The state of Alabama does not have a specific tax rate for gambling winnings, but they are subject to the state income tax rates that range from 2% to 5% depending on your income level. In addition, some municipalities may impose local taxes on gambling winnings or activities. For example, Birmingham has a 1% occupational tax on gross income from any source within the city limits.

As you can see, gambling tax law in Alabama is complex and may differ depending on where you gamble and how much you win or lose. Therefore, it is advisable to consult a tax professional before you file your tax return or engage in any gambling activities in Alabama. This way, you can avoid any potential penalties or audits from the IRS or the state authorities.

Alabama Gambling and Lottery Laws

Gambling

Gambling Law in Alabama:

Gambling is generally considered a vice that must be heavily regulated in the United States, and Alabama is no exception. The state has strict laws that prohibit most forms of gambling, except for a few exceptions such as tribal casinos, dog racing, and pari-mutuel betting. In this blog post, we will summarize the main aspects of gambling law in Alabama and provide some resources for further information.

What is gambling?

According to Alabama law, gambling is defined as when a person stakes or risks something of value on the outcome of a game of chance or future event not under his or her control or influence with the understanding that he or she or another person will receive something of value in the event of a certain outcome. This definition excludes investments, such as securities or commodities, which can also be risky but are not considered gambling.

What are the Penalties for Gambling?

If a person engages in simple gambling, which means placing or accepting bets for personal use and not for profit, they can be charged with a Class C misdemeanor and sentenced to up to three months in jail and a $500 fine. However, if a person engages in promoting gambling, which means operating or participating in a gambling business or scheme for profit, they can be charged with a Class A misdemeanor and sentenced to up to a year in jail and up to a $6,000 fine. Additionally, if a person illegally has a gambling device, such as a slot machine, they can also be charged with a Class A misdemeanor.

What are the exceptions to gambling?

There are some exceptions to the general prohibition of gambling in Alabama. These include:

Tribal casinos:

The Poarch Band of Creek Indians is the only federally recognized tribe in Alabama and legally operates three casinos in Atmore, Montgomery, and Wetumpka. These casinos offer electronic bingo machines that resemble slot machines but are based on bingo cards and numbers. The tribe does not pay taxes to the state on its gaming revenue.

Dog racing:

cities of 300,000 inhabitants or more are allowed to determine by referendum whether dog racing will be permitted. There are two active greyhound racetracks in Alabama, located outside Birmingham and Mobile. These racetracks offer pari-mutuel betting on live and televised dog races .

Pari-mutuel betting:

Pari-mutuel betting is allowed in conjunction with horse and dog racing, including televised horse and dog racing in other areas. However, pari-mutuel betting must be run through a gambling commission for the municipal area and be licensed by the state. Pari-mutuel betting is a system where bettors place bets into a pool and share the winnings according to the amount wagered and the number of winners.

What are the prospects for gambling expansion?

There have been several attempts to expand gambling options in Alabama over the years, such as legalizing a state lottery or commercial casinos. However, none of these proposals have been successful so far. The main obstacles are the conservative political climate, the opposition from religious groups, and the lack of support from the governor.

In order to legalize any form of gambling that is currently prohibited by law, such as a lottery or casino gambling, a constitutional amendment would be required. This means that both chambers of the legislature would have to approve the amendment by a three-fifths majority vote and then submit it to the voters for approval by a simple majority vote. The last time Alabamans voted on a gambling question was in 1999, when they rejected an effort to legalize a state lottery.

However, public opinion may have changed since then as more states have legalized various forms of gambling, including sports betting. In 2021, a bill that would have authorized nine full-scale casinos with slot machines and table games, as well as sports betting and a state-run lottery, passed the Senate but failed to pass the House before the end of the legislative session. The bill would have also allowed the Poarch Band of Creek Indians to transition their casinos into full-scale casinos with table games. The bill’s sponsor said he would try again.

Gambling Tax

See: Gambling Tax Laws above

State Lotteries

Why Alabama Doesn’t Have a State Lottery

Many people enjoy playing the lottery, hoping to win big prizes or even life-changing jackpots. But not every state in the US offers a state lottery for its residents. In fact, only 45 states and the District of Columbia have some form of state lottery, while five states prohibit it altogether. One of those states is Alabama, which has a long history of opposition to gambling and lotteries.

The Constitutional Ban on Lotteries

The main reason why Alabama doesn’t have a state lottery is because it is explicitly forbidden by the state constitution. Article IV, Section 65 of the Alabama Constitution states:

The legislature shall have no power to authorize lotteries or gift enterprises for any purposes and shall pass laws prohibiting the sale of lottery or gift enterprise tickets in this state.

This provision was added to the Constitution in 1901 as part of a broader effort to limit the power of the legislature and suppress the voting rights of African Americans and poor whites. The ban on lotteries was also influenced by religious groups that viewed gambling as immoral and sinful.

The Failed Attempts to Legalize a State Lottery

Despite the constitutional ban, there have been several attempts over the years to legalize a state lottery in Alabama. The most notable one was in 1999, when then-Governor Don Siegelman campaigned on a platform of creating a state lottery to fund education. He proposed a constitutional amendment that would allow Alabamians to vote on whether to establish a lottery, but the amendment was defeated by a narrow margin of 54% to 46%.

Since then, there have been other proposals to introduce a state lottery, especially in times of fiscal crisis or budget shortfalls. In 2015, for example, two bills were introduced in the legislature that would create a state lottery and allow casino-style gambling. However, both bills failed to pass due to a lack of support from lawmakers and voters.

The Pros and Cons of Having a State Lottery

The main argument in favor of having a state lottery is that it would generate additional revenue for the state, especially for education and other public services. Proponents of a state lottery point out that Alabama residents already spend millions of dollars on lotteries in neighboring states like Georgia and Tennessee, which have their own lotteries. They claim that Alabama is losing out on potential income that could benefit its own citizens.

The main argument against having a state lottery is that it would promote gambling addiction and harm vulnerable populations, such as low-income and minority groups. Opponents of a state lottery argue that lotteries are a regressive form of taxation that prey on people’s hopes and dreams. They also contend that lotteries are ineffective at raising funds for education and other causes, as they often divert money from other sources or create new expenses.

The Future of Lottery Laws in Alabama

As of now, there is no indication that Alabama will have a state lottery anytime soon. The constitutional ban remains in place, and there is no active movement to change it. However, some forms of gambling are legal in Alabama, such as bingo, pari-mutuel wagering on horse and dog racing, and tribal casinos operated by Native American tribes. These forms of gambling are regulated by local authorities or federal laws and are subject to various restrictions and limitations.

If you are interested in learning more about gambling and lottery laws in Alabama, you can consult with an Alabama gaming attorney if you have any legal questions or concerns regarding this topic.