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inclusive, added; Secs. 40-2A-3, 40-2A-4, 40-2A-5, 40-2A-7, 40-2A-8, 40-2A-10, 40-2A-11, 40-18-27 am'd.; Sec. 40-2A-9 repealed

Description

Under existing law, the Alabama Taxpayers' Bill of Rights and Uniform Revenue Procedures Act governs the administrative procedures of the Department of Revenue and local governments relating to taxpayer's rights and responsibilities, refunds, penalties, assessments, and appeals.

This bill would amend the act to conform in several respects to the federal Taxpayer's Bill of Rights, including broader "innocent spouse" type relief, and make technical corrections to remove ambiguities and conflicts. This bill would require certain state tax income returns to be filed as a result of IRS audit changes, consistent with the Multistate Tax Commission's model statute, and increase a taxpayer's penalties for fraud, negligence, and frivolous appeals or returns, consistent with federal law. This bill would increase the time period in which a taxpayer has to file an appeal of a preliminary or final assessment. This bill would establish a new procedure for seeking an expedited revenue ruling from the department, and allow the department to issue revenue procedures applicable to a particular industry or group of taxpayers.

This bill would specifically state that it is the intent of this bill to adopt in Alabama the American Bar Association Model State Administrative Tax Tribunal Act.

This bill would abolish the Administrative Law Division of the Department of Revenue, and provide for the creation and operation of a new, independent state agency, the Alabama Tax Appeals Commission, to hear appeals of tax and other matters administered by the Department of Revenue, and appeals related to certain local taxes levied by or on behalf of self-administered counties or municipalities, unless the governing body elects-out. The bill would transfer office furniture, equipment, computers and other property from the Department of Revenue to the Tax Appeals Commission, and also transfer from the Revenue Department Administrative Fund and from the State General Fund the necessary funds for the first year of operation of the Tax Appeals Commission.

This bill would also amend portions of Chapters 2A and 18 of Title 40, Code of Alabama 1975, for purposes of conformity and to make technical corrections. The bill would also clarify the intent of the Legislature in response to the Alabama Court of Civil Appeals' 2009 decision in Rheem Manufacturing Company v. State Department of Revenue regarding the authority of the Alabama Tax Appeals Commission to address all arguments related to a taxpayer's refund claim in order to allow substantial justice.

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Subjects

Revenue Department