HB264 Alabama 2013 Session

Summary

Primary Sponsor

Paul DeMarco

Republican

Session

Regular Session 2013

Title

Taxpayers' Bill of Rights, Uniform Revenue Procedures Act, broader "innocent spouse" relief, taxpayer appeals, revenue rulings from Department of Revenue, Alabama Tax Appeals Commission, Secs. 40-2A-3, 40-2A-4, 40-2A-5, 40-2A-7, 40-2A-8, 40-2A-11, 40-18-27 am'd.; Sec. 40-2A-9 repealed; Secs. 40-2B-1 to 40-2B-25, inclusive, added

Summary

HB264 creates an independent Alabama Tax Appeals Commission to handle tax disputes, moving appeals from the Department of Revenue, expanding taxpayer rights, and adding new procedures and penalties.

What This Bill Does

It establishes the Alabama Tax Appeals Commission as an independent executive-branch agency to hear tax disputes and pre-payment resolutions, transferring duties from the Department of Revenue’s Administrative Law Division. It expands taxpayer protections (including broader innocent-spouse relief), increases penalties for negligence, fraud, and frivolous actions, and extends the time to file appeals and requests rulings. It also creates a new expedited revenue ruling process and sets transition rules, funding, and operational details for the switch, including the option for self-administered counties/municipalities to opt out of the Commission’s jurisdiction.

Who It Affects

• Taxpayers (individuals and businesses paying state or local Alabama taxes) who gain a new independent appeals channel, broader protections, longer appeal windows, and access to expedited rulings.
• The Alabama Department of Revenue and self-administered counties or municipalities, which must transfer functions, property, and funds to the new Commission, and may elect out of the Commission’s jurisdiction or face changed appeal procedures.

Key Provisions

• Creates Chapter 2B establishing the Alabama Tax Appeals Commission as an independent tax tribunal in the executive branch to hear appeals for the Department of Revenue and certain local taxes that do not opt out.
• Abolishes the Administrative Law Division of the Department of Revenue and transfers its assets, case files, and responsibilities to the Tax Appeals Commission; repeals Section 40-2A-9.
• Amends multiple sections to conform with federal law, expanding innocent-spouse relief, increasing penalties for negligence, fraud, and frivolous actions, and requiring amended state income tax returns after IRS audit changes.
• Extends the time period to file appeals of preliminary or final assessments and creates an expedited process for issuing revenue rulings; allows publication and publication of decisions where appropriate.
• Establishes procedures for hearings (de novo, no jury), subpoenas, records, and open-public hearings; prohibits filing fees for appeals; provides for circuit court review with specific standards.
• Allows self-administered counties or municipalities to elect out of the Commission’s jurisdiction (and to revoke), requires monthly publication of which entities have elected out, and sets transition timelines and funding for initial operations.

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