SB549 Alabama 2012 Session

Summary

Primary Sponsor

Ben H. Brooks

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40-2B-25, inclusive, added; Secs. 40-2A-3, 40-2A-4, 40-2A-5, 40-2A-7, 40-2A-8, 40-2A-11, 40-18-27 am'd.; Sec. 40-2A-9 repealed

Summary

SB549 creates an independent Alabama Tax Appeals Commission to hear tax disputes, abolishes the Department of Revenue's Administrative Law Division, and aligns Alabama's tax appeals with federal standards, while allowing counties and municipalities to opt-out of the new system.

What This Bill Does

It establishes the Alabama Tax Appeals Commission as an independent agency in the executive branch, to hear appeals of taxes administered by the Department of Revenue and certain local taxes, and it becomes fully operational by October 1, 2012. It abolishes the Administrative Law Division and moves most tax appeals to the new commission, while updating taxpayer rights and penalties to align with the federal Taxpayer's Bill of Rights II. It creates procedures for open, de novo hearings, public records, and circuit court review, and it provides initial funding for the first year, with ongoing budgeting managed by the Commission. It also allows self-administered counties or municipalities to elect-out of the Commission's jurisdiction for some local taxes, with a defined process and publication, while preserving ongoing appeals as of the election date and setting later transition timelines for certain taxes.

Who It Affects

• Taxpayers and businesses subject to state or local Alabama taxes who will use the new Tax Appeals Commission to resolve disputes before payment or further action, with enhanced due-process protections and a de novo hearing process.
• The Department of Revenue and self-administered counties or municipalities that administer local taxes, who shift appeals to the Tax Appeals Commission unless a county or municipality elects-out, with funding, transition rules, and potential local appeal pathways for opted-out jurisdictions.

Key Provisions

• Provision 1: Establishes the Alabama Tax Appeals Commission as an independent tribunal, transfers functions and cases from the Administrative Law Division, provides initial funding for the first year, and sets operational and conformity goals with the ABA Model State Administrative Tax Tribunal Act.
• Provision 2: Allows self-administered counties or municipalities to elect-out of the Tax Appeals Commission's jurisdiction for certain local taxes, outlines the election-out process and publication, and defines the effects on appeal jurisdiction and transition timelines for taxes once an election-out is filed or revoked.

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

Subjects

Revenue Department