Alabama Department of Revenue v. American Equity Investment Life Insurance Co.

THOMAS, Judge.

American Equity Investment Life Insurance Company (“the taxpayer”) is an out-of-state insurance company that does business in Alabama. The taxpayer is subject to the Alabama Business Privilege Tax Act, which is codified at Ala.Code 1975, § 40-14A-21 et seq. The business-privilege tax (“the BPT”) is levied “on every corporation, limited liability entity, and disregarded entity doing business in Alabama, or organized, incorporated, qualified, or registered under the laws of Alabama.” Ala.Code 1975, § 40-14A-22(a). The BPT is based on a taxpayer’s net worth in Alabama. Id. Section…