HB411 Alabama 2014 Session

Summary

Primary Sponsor

Dan Williams

Republican

Session

Regular Session 2014

Title

Revenue Department, local governments using department for collection and administration services given the same free filing and payment services as local governments which only accept returns and payments through ONE SPOT system, Secs. 11-3-11.3, 11-51-183, 11-51-208, 40-12-4, 40-12-7 am'd.

Summary

HB411 would let counties and municipalities use the Department of Revenue to collect and administer local taxes and require free filing and payment services, while lowering the administration cost cap from 5% to 2%.

What This Bill Does

It authorizes the Department of Revenue to collect and administer county taxes (sales, use, rental, lodgings, tobacco, and other taxes with a state levy) on behalf of counties, following the state's tax rules where applicable. It reduces the maximum administration charge charged to counties and municipalities from 5% to 2% of the amount collected. It requires the department to provide localities with the same filing and payment processing services available through ONE SPOT at no cost, and to securely deposit and distribute collected taxes to counties and municipalities after deducting administration costs, with regular reporting to the Comptroller.

Who It Affects

• Counties: may have the Department of Revenue collect and administer county taxes, with administration charges capped at 2% and distributions made after costs; eligible for free filing/payment services under ONE SPOT for taxes administered by the department.
• Municipalities: may have the Department of Revenue collect and administer municipal taxes, with administration charges capped at 2% and distributions made after costs; eligible for free filing/payment services under ONE SPOT for taxes administered by the department.

Key Provisions

• Authorizes the Department of Revenue to collect and administer county taxes (sales, use, rental, lodgings, tobacco, etc.) with rules parallel to the state tax where applicable.
• Decreases the local tax administration cost cap from 5% to 2% of the amount collected, and requires periodic recomputation of actual costs with overcharges redistributed to counties pro rata (undercharges not recovered).
• The department may not charge counties for filing and payment processing services related to taxes filed under the ONE SPOT system and must provide the same services to counties as it does to municipalities and other localities.
• Taxes collected by the department are deposited into the State Treasury and distributed to counties and municipalities after deducting administration costs, with biweekly certification to the Comptroller and timely distribution to local treasuries.
• Removes antiquated references related to the cost of collection, and the act becomes effective on the first day of the third month after it is signed into law.

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