HB105 Alabama 2014 Session

Summary

Primary Sponsor

Paul DeMarco

Republican

Co-Sponsor

Mike Hubbard

Session

Regular Session 2014

Title

Alabama Tax Tribunal, created as separate entity to hear tax appeals, replaces Administrative Law Division within Department of Revenue, Taxpayer Fairness Act, Sec. 40-2B-1 added; Sec. 40-2A-9 repealed; Secs. 40-2A-3, 40-2A-4, 40-2A-5, 40-2A-7, 40-2A-8, 40-18-27 am'd.

Summary

HB105 creates the Alabama Tax Tribunal as an independent agency to hear tax appeals, moving them from the Department of Revenue's Administrative Law Division.

What This Bill Does

It establishes the Alabama Tax Tribunal as an independent executive-branch agency to hear appeals of tax decisions from the Department of Revenue and from participating self-administered counties and municipalities. It replaces the Administrative Law Division with the Tax Tribunal and sets up one to three judges plus a chief judge to run it, with offices in Montgomery and hearings statewide. The process allows taxpayers to have hearings after trying to settle with the department, and does not require payment of the disputed tax or a bond to start a hearing. Final tribunal decisions can be reviewed in circuit court, and counties can choose to participate or opt out of the tribunal system.

Who It Affects

• Taxpayers (individuals and businesses) subject to Alabama taxes will have a new, independent forum to contest tax determinations, with rights to representation, discovery, hearings, and potential refunds; no bond is required to start an appeal.
• Self-administered counties/municipalities and the Department of Revenue: counties/municipalities can elect to participate in the Tax Tribunal for their taxes or elect-out, which changes who handles certain tax appeals; the Department’s role shifts to funding and administration of the tribunal and implementing related rules.

Key Provisions

• Creates the Alabama Tax Tribunal as an independent executive-branch agency within Title 40, Chapter 2B.
• Replaces the Department of Revenue's Administrative Law Division with the Alabama Tax Tribunal and renames/defines related terms (e.g., Administrative Law Division, Administrative Law Judge to be replaced).
• Allows self-administered counties or municipalities to elect to participate in the Tribunal or to elect-out; election-out changes which body handles appeals for those taxes.
• The Tribunal has exclusive jurisdiction over hearings for tax disputes administered by the Department of Revenue and participating counties/municipalities, with hearings conducted after settlement attempts and without requiring payment of the disputed tax or posting a bond to begin.
• Governs appointment and number of judges (at least one, up to three) plus a chief judge, all appointed by the Governor for six-year terms; specifies salaries and that the chief judge runs the administration.
• Delivers hearings de novo, open to the public (with protective orders possible), allows discovery, and requires official reporting of decisions; decisions are final but may be reviewed by circuit court.
• Provides for the Taxpayer Advocate, Taxpayer Assistance Orders, and options for refunds and credits; includes publication/recordkeeping requirements and annual reporting from the Tribunal.
• Transfers or consolidates funding: initial transfer of $425,000 from the Revenue Department Administrative Fund for 2014, with long-term budgeting handled by the Tribunal; transfer details and timelines for implementation are specified.
• Transfers existing proceedings in progress as of October 1, 2014 to the Tribunal unless a final settlement has already occurred; repeals Section 40-2A-9.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation