SB223 Alabama 2013 Session

Summary

Primary Sponsor

Bryan Taylor

Republican

Co-Sponsors

Roger Bedford, Jr.Paul BussmanRusty GloverCam WardGeorge M. “Marc” KeaheyMark Slade BlackwellBill HoltzclawClay ScofieldJerry L. FieldingGerald H. AllenPhillip W. WilliamsShadrack McGillWilliam “Bill” M. BeasleyGreg J. ReedTammy IronsJ.T. WaggonerDel Marsh

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Tax Appeals Commission, Secs. 40-2A-3, 40-2A-4, 40-2A-5, 40-2A-7, 40-2A-8, 40-2A-11, 40-18-27 am'd.; Sec. 40-2A-9 repealed; Secs. 40-2B-1 to 40-2B-25, inclusive, added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

SB223 would replace Alabama’s Administrative Law Division with an independent Alabama Tax Appeals Commission to handle tax disputes, expand taxpayer rights, and align state procedures with federal models.

What This Bill Does

It creates the Alabama Tax Appeals Commission as an independent agency and abolishes the Administrative Law Division, transferring its assets and cases. It expands taxpayer rights (including broader innocent-spouse relief), increases penalties for negligence or fraud and frivolous appeals, and extends the time to appeal preliminary and final assessments, while requiring amended state returns after IRS audit changes. It adopts a model administrative tax tribunal approach, adds expedited revenue rulings, and establishes new procedures for self-administered counties/municipalities to either participate or opt out. It sets up hearings as de novo, open to the public, with rules for evidence, subpoenas, and circuit court review, and outlines funding, staffing, and governance for the new commission.

Who It Affects

• Taxpayers in Alabama (individuals and businesses) who owe or dispute state or local taxes would gain expanded rights, longer time to appeal, and access to independent dispute resolution, along with potentially higher penalties for misconduct.
• Self-administered counties and municipalities: those not electing out would shift tax dispute appeals to the new Alabama Tax Appeals Commission, while those electing out would handle appeals at the county/municipality level; election-out and revocation rules are established, with annual publication of who has opted out.

Key Provisions

• Establishes the Alabama Tax Appeals Commission as an independent executive-branch agency to hear tax appeals and certain local tax matters.
• Abolishes the Department of Revenue's Administrative Law Division and transfers its property, funds, and case files to the Tax Appeals Commission for a planned transition (operational by October 1, 2013).
• Conforms to federal laws by expanding taxpayer rights (including broader innocent-spouse relief) and increasing penalties for negligence, fraud, and frivolous returns or appeals; requires amended state income tax returns due to IRS audit changes.
• Extends time periods for filing appeals of preliminary or final assessments and creates an expedited revenue ruling process with specific timelines and a $3,000 expedited-fee option.
• Adopts in large part the American Bar Association Model State Administrative Tax Tribunal Act to guide operations and dispute resolution, including pre-payment resolution aims and due-process protections.
• Creates Chapter 2B (Alabama Tax Appeals Commission) with defined jurisdiction over Department of Revenue appeals and certain self-administered county/municipal taxes that do not opt out, plus procedures for electing out.
• Sets up a judicial framework for the Commission, including appointment of judges by a nominating committee, six-year terms (with potential for judge pro tempore), salaries, and staffing rules.
• Specifies hearing procedures (de novo, no jury, open to the public, with transcripts and evidentiary rules) and the circuit court review pathway for final decisions.
• Outlines election-out processes for self-administered counties/municipalities to divest from the Commission, monthly publication of opt-outs, and transitional provisions for appeals in progress during changes.

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