SB454 Alabama 2011 Session

Summary

Primary Sponsor

Tom Whatley

Republican

Session

Regular Session 2011

Title

Ad valorem tax, personal property, county commission authorized to contract with third parties to provide noncompliance detection of certain property not assessed, procedures, fees, Sec. 40-5-34.1 added

Summary

Counties could hire outside firms to find unpaid personal property taxes and share the fees with revenue-sharing entities, with those fees deducted before funds are sent to the appropriate entity.

What This Bill Does

The bill would authorize each county to contract with third parties to detect previously unknown and unpaid personal property ad valorem taxes. It would not involve assessment or auditing of taxpayers’ records by tax officials. The third-party fees could be apportioned among the entities that share in personal property tax revenues and deducted from the discovered revenues before money is remitted to the appropriate entity, as directed by the county commission.

Who It Affects

• County commissions in Alabama counties (gain authority to hire third parties for tax noncompliance detection).
• Third-party contractors/vendors (would perform detection work and earn fees).
• Entities that share in personal property ad valorem revenues (e.g., municipalities/counties) (would receive a portion of the third-party fees).
• Property owners or businesses with previously unknown unpaid personal property taxes (could be identified and charged for unpaid taxes).

Key Provisions

• Adds Section 40-5-34.1 authorizing county commissions to contract with third parties for noncompliance detection of unassessed personal property ad valorem taxes.
• Noncompliance detection does not include assessment or auditing of taxpayer records by tax officials.
• Third-party fees may be apportioned among entities sharing in the personal property ad valorem revenues.
• Third-party fees may be deducted from revenues discovered by the third party before remitting funds to the appropriate entity, as directed by the county commission.
• Effective date: becomes law on the first day of the third month after passage and governor approval.

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

Subjects

Counties