SB286 Alabama 2012 Session

Summary

Primary Sponsor

Tammy Irons

Democrat

Co-Sponsor

Arthur Orr

Session

Regular Session 2012

Title

Counties and municipalities issuing business licenses required to obtain certain information and electronically transmit to Revenue Department to be cross checked with sales tax records to verify payment of sales tax

Summary

SB286 would require counties and municipalities that issue business licenses to collect and electronically send certain business information to the Department of Revenue, which would check whether the business collects and pays sales tax.

What This Bill Does

If enacted, the bill requires local governments to collect specific information from a business when a license is purchased and to transmit it electronically to the Alabama Department of Revenue within 30 days. The Department would then cross-check the submitted information with its sales tax records to determine whether the business is collecting and paying the required sales tax. The bill notes that implementing this would involve a new or increased local government expenditure, which would require a 2/3 vote in the Legislature unless the local entity approves or funds are provided by the Legislature.

Who It Affects

• Businesses applying for a county or municipal business license would need to provide detailed information (legal name, trade name, mailing address, physical location addresses, and the state's sales tax ID) and have it collected and transmitted to the Department of Revenue.
• The Alabama Department of Revenue would receive the information from local governments and would cross-check it against its sales tax records to verify tax collection and payment.

Key Provisions

• When a business license is purchased, the business must provide: legal name, any trade name, mailing address, physical address for each location, and the state's sales tax identification number.
• Counties or municipalities must transmit the provided information electronically to the Alabama Department of Revenue within 30 days, and include the NAICS code for the business.
• The Department of Revenue must create and maintain an electronic portal or website for receiving these submissions.
• The Department must cross-check the submitted information with its sales tax records to determine whether the licensee is collecting and paying the required sales tax.
• Because the bill would create a new or increased local expenditure, it is subject to Amendment 621 (requiring a 2/3 vote for new or increased local expenditures) unless the affected local entity approves or funds are provided by the Legislature.

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

Subjects

Taxation