SB347 Alabama 2011 Session

Summary

Primary Sponsor

Ben H. Brooks

Republican

Session

Regular Session 2011

Title

Revenue Department, Tax Appeals Commission, established, Administrative Law Division abolished, Tax Appeals Commission Act, Secs. 40-2B-1 to 40-2B-25, inclusive, added; Secs. 40-2A-3, 40-2A-4, 40-2A-5, 40-2A-7, 40-2A-8, 40-2A-10, 40-2A-11, 40-18-27 am'd.; Sec. 40-2A-9 repealed

Summary

SB347 would create an independent Alabama Tax Appeals Commission to handle tax and certain local tax appeals, abolish the current Administrative Law Division, and overhaul tax procedures to align with federal models and broaden taxpayer protections.

What This Bill Does

It establishes the Alabama Tax Appeals Commission as an independent executive-branch agency to hear tax appeals and certain local tax disputes, replacing the Administrative Law Division; it becomes fully operational by October 1, 2011, with local tax appeals for self-administered counties/municipalities starting October 1, 2012. It adopts the American Bar Association Model State Administrative Tax Tribunal Act, expands innocent-spouse relief, increases penalties for fraud, negligence, and frivolous returns or appeals, and extends the time to file an appeal; it also clarifies that the Commission can address all refund-claim arguments to allow substantial justice, addressing the Rheem v. State Department of Revenue decision. It creates new tools such as expedited revenue rulings and industry-wide revenue procedures, requires amended state income tax returns when IRS audit changes affect Alabama taxes, and allows counties/municipalities to elect-out of the Commission’s jurisdiction for certain local taxes. It will also transfer assets and funds from the Department of Revenue and set up transition rules for staff and records.

Who It Affects

• Taxpayers in Alabama may gain an independent and potentially more protective venue to contest tax and related local tax decisions, with expanded rights, a longer window to appeal, de novo hearings, and access to expedited guidance via revenue rulings and procedures.
• Self-administered counties or municipalities and their taxpayers may elect-out of the Tax Appeals Commission for certain local taxes, shifting appeals to local government with transitional rules, publication of elect-out lists, and limits on how and when the election-out can be used.

Key Provisions

• Creates Chapter 2B and the Alabama Tax Appeals Commission as an independent agency in the executive branch, to hear tax appeals and certain local tax matters; abolishes the Administrative Law Division; and transfers staff, equipment, and funds to the new commission with initial funding for startup.
• Adopts the American Bar Association Model State Administrative Tax Tribunal Act; clarifies the commission can address all refund-claim arguments to ensure substantial justice, including matters from Rheem Manufacturing Co. v. State Department of Revenue; expands innocent-spouse protections and aligns penalties with federal concepts.
• Expands taxpayer protections and penalties: broader innocent-spouse relief; increases penalties for negligence, fraud, and frivolous returns or appeals; extends the time to file appeals of preliminary or final assessments; and establishes rules for revenue rulings and revenue procedures.
• Creates expedited revenue rulings and industry-specific revenue procedures; requires revenue rulings to be published and accessible; allows industry groups to request procedures; and requires amended state income tax returns when IRS audit changes affect Alabama tax liabilities.
• Gives self-administered counties/municipalities the option to elect-out of Tax Appeals Commission jurisdiction for certain local taxes; sets process for filing and publication of the election-out and revocation; allows pending appeals to continue under existing arrangements until the election-out becomes effective; permits yearly limits on elections.
• Defines procedures for the transition, including hearings de novo, open to the public, no filing fees, standardized service of notices, record-keeping, judge qualifications and terms, and budget/operational controls, with the full Act becoming effective as specified.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Revenue Department