SB322 Alabama 2012 Session

Under existing law, a severance tax is levied on certain purchasers of severed material such as sand, gravel, and limestone. The tax is collected by the operator of the mine or quarry, paid to the Department of Revenue, and distributed to the county in which the material is severed

Under existing law, a county is not specifically entitled to any taxpayer reports or information related to which operators pay the tax to the department and the amount of taxes paid

Additionally, counties have no authority to request audits of mine or quarry operators to determine whether taxes are being properly paid

This bill would require the Department of Revenue to provide the county commission of a county with certain tax records and information related to severance tax collections and payments from operators in the county and would require the information to be treated as confidential by the county commission

This bill would authorize the county to request that the department conduct audits of certain operators subject to the severance tax and would provide for the county to pay the costs of the audit in the event the audit results in a finding that all taxes have been properly paid. The bill would also require interest and penalties on unpaid delinquent taxes and would provide for civil penalties

To amend Sections 40-13-53, 40-13-55, 40-13-56, 40-13-57, 40-13-58, and 40-13-61, Code of Alabama 1975, relating to the severance tax on certain materials; to require the Department of Revenue to provide the county commission of a county with certain tax records and information related to severance tax collections and payments from operators in the county and to require the information to be treated as confidential by the county commission; to authorize the county commission to request that the department conduct audits of certain operators subject to the severance tax and to provide for the county commission to pay the costs of the audit in the event the audit results in a finding that all taxes have been properly paid; and to require interest and penalties to be imposed on delinquent taxes and to provide for civil penalties.