HB105 Alabama 2012 Session

Summary

Primary Sponsor

Paul DeMarco

Republican

Session

Regular Session 2012

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40-2B-25, inclusive, added; Secs. 40-2A-3, 40-2A-4, 40-2A-5, 40-2A-7, 40-2A-8, 40-2A-11, 40-18-27 am'd.; Sec. 40-2A-9 repealed (2012-20330R2)

Summary

HB105 would create an independent Alabama Tax Appeals Commission to handle tax disputes, abolish the Department of Revenue's Administrative Law Division, and overhaul tax dispute procedures to expand taxpayer rights and align with federal models.

What This Bill Does

It establishes the Alabama Tax Appeals Commission as an independent executive-branch agency to hear appeals of state tax issues and certain local taxes that do not opt out. It abolishes the Administrative Law Division and transfers its assets, files, and initial startup funding to the Tax Appeals Commission, which would become fully operational by October 1, 2012. It broadens taxpayer rights, expands innocent-spouse relief, increases penalties for negligence and fraud, extends appeal deadlines, and creates a new expedited revenue ruling process and industry-specific revenue procedures; it also requires amended state income tax returns after IRS audit changes and allows local taxes to be appealed to TAC unless a county or municipality elects to divest.

Who It Affects

• Taxpayers in Alabama (individuals and businesses) who owe, file, or dispute state or local taxes, as they would gain access to an independent Tax Appeals Commission, expanded rights, and new procedures.
• Self-administered counties and municipalities and their governing bodies, which may elect-out of TAC jurisdiction; if they do not elect-out, TAC would hear disputes involving their local sales, use, rental, and lodgings taxes.

Key Provisions

• Creation of the Alabama Tax Appeals Commission as an independent state agency to hear tax and related disputes.
• Abolition of the Department of Revenue's Administrative Law Division and transfer of its assets, case files, and staff to the Tax Appeals Commission; initial funding of 425,000 dollars from the Revenue Department Administrative Fund for the first year of operation.
• Adoption of federal and ABA model provisions to conform to taxpayer rights, including broader innocent-spouse relief and increased penalties for negligence, fraud, and frivolous filings; amendments to multiple code sections to implement these changes and require amended returns after IRS audit changes.
• Extension of the time to file appeals of preliminary or final assessments and creation of an expedited revenue ruling process with industry-specific procedures; revenue rulings can be issued and published, with a fee structure and confidentiality rules.
• Self-administered counties or municipalities may elect-out of TAC jurisdiction; if not elected-out, TAC has jurisdiction over certain local taxes; elections-out become effective on notice publication, and pending appeals may continue under the old system.
• Judges and administration of the Tax Appeals Commission, including appointment, terms, pro tempore options, salaries, offices, hearings, records, and open/public nature of proceedings; no jury and de novo review for appeals.
• Public publication of decisions where appropriate, establishment of taxpayer advocate and procedures for waivers and relief, and enhanced enforcement of penalties where applicable.
• Transition and implementation dates: TAC fully operational by 2012-10-01; jurisdiction over non-opt-out local taxes by 2013-10-01; repeal of conflicting provisions and severability preserved.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Revenue Department