SB322 Alabama 2012 Session

Summary

Primary Sponsor

Gerald H. AllenSenator

Republican

Session

Regular Session 2012

Title

Severance tax on sand, gravel, etc., Revenue Department to provide county commissions with information regarding levy, collection, and distribution, audits authorized, civil penalties, counties authorized to collect, Secs. 40-13-53, 40-13-55, 40-13-56, 40-13-57, 40-13-58, 40-13-61 am'd

Summary

SB322 would give counties access to severance tax records, authorize county-initiated audits at county expense if taxes are due, and add penalties for delinquent taxes while preserving existing revenue distribution to counties.

What This Bill Does

The Department of Revenue would provide county commissions with tax records and information about severance tax collections in their county, with the information treated as confidential by the counties. Counties could request audits of severance-tax operators, with the county paying the audit costs only if the audit finds that all taxes were properly paid. The bill would require interest and penalties on delinquent taxes and establish civil penalties for violations. It also clarifies which materials are exempt from the severance tax and maintains the existing framework for distributing tax revenues to counties for roads and local development.

Who It Affects

• County governments and county commissions, who would receive confidential severance tax information, oversee audits, and allocate funds for local projects such as roads and economic development.
• Severance tax operators and producers, who would be subject to audits upon county request, must file returns and pay taxes with associated penalties and potential civil penalties for noncompliance.

Key Provisions

• Require the Department of Revenue to provide county commissions with severance tax records and related information; information to be treated as confidential by the county.
• Authorize county commissions to request audits of certain severance-tax operators; counties pay audit costs only if the audit finds all taxes were properly paid.
• Impose interest and penalties on delinquent taxes and provide for civil penalties for violations.
• Amend definitions of severed material and specify exemptions from the tax, while preserving the existing distribution framework of severance tax revenues to counties for roads and local development.

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