The Alabama Department of Revenue (ALDOR) issued guidance to employers on Tuesday stating that nonresident, remote employees of Alabama businesses aren’t subject to the state’s income tax.

The ALDOR notice reverses a previous policy based on a 2023 ruling by the Alabama Tax Tribunal in Mark E. Bollinger v. Alabama Department of Revenue, which allowed Alabama to tax remote workers who used to live and work in Alabama but later left the state while keeping the same Alabama employer.

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