SB21 Alabama 2015 1st Special Session

Summary

Primary Sponsor

Tim MelsonSenator

Republican

Session

First Special Session 2015

Title

Alabama Tax Delinquency Amnesty Act of 2015, Dept. of Revenue required to establish tax amnesty program, except for fuel tax, for tax years 2015, 2016, and 2017

Summary

SB21 creates a temporary tax amnesty program for Alabama taxes (excluding motor fuel) in 2015–2017 to reduce penalties and some interest for eligible delinquents.

What This Bill Does

The Department of Revenue would implement an amnesty program for all taxes it administers except motor fuel tax, with specific windows in 2015, 2016, and 2017. Eligible taxes are those due before 2015 with certain assessments or taxes for periods begun before 2015. Participants must waive their right to protest and pay the full tax, fees, costs, and any due interest; no installment plans are allowed. The bill provides different waivers of penalties and interest depending on the amnesty year (2015: 50% of interest and all penalties; 2016: 15% of penalties; 2017: 10% of penalties) and no interest waivers in 2016 and 2017.

Who It Affects

• Taxpayers with delinquent Alabama taxes (individuals or businesses) who apply during the amnesty periods and pay all tax, fees, costs, and interest due.
• Taxpayers with existing liens, who are eligible but must also pay any lien fees.
• Taxpayers involved in audits or litigation who participate, and must follow the department's interpretations for certain periods and cover related litigation costs.
• Taxpayers who made out-of-state purchases subject to Alabama use tax that was not charged at the time of purchase.
• Taxpayers under criminal investigation on the act’s effective date are ineligible.

Key Provisions

• Establishes the Alabama Tax Delinquency Amnesty Act of 2015 to grant amnesty for all taxes administered by the Department of Revenue (excluding motor fuel tax) for tax years 2015, 2016, and 2017.
• Amnesty periods: at least two months in 2015 (before December 31), at least one month in 2016 (between July 1 and December 31), and at least one month in 2017 (between July 1 and December 31).
• Eligible taxes include taxes due prior to January 1, 2015 with assessments issued by May 31, 2015 or taxes for periods beginning before 2015.
• Participation requires a written waiver of rights to protest or seek administrative/judicial review for the covered periods; only the specified tax and period are affected.
• Audits and litigation: participants must follow the department’s interpretation for later periods; pay litigation costs up to the agreement date; special rules apply to refunds from escrow and adjustments.
• Liens: taxpayers with liens are eligible but must pay lien fees.
• Criminal investigations: taxpayers involved in ongoing criminal investigations are ineligible.
• Penalties and interest: 2015 amnesty waives half of interest and all penalties; 2016 amnesty waives 15% of penalties (no interest waived); 2017 amnesty waives 10% of penalties (no interest waived).
• Publicity and administration: the department may contract advertising services (up to 10% of total collected as a fee) and may spend up to $250,000 on advertising; remaining funds go to the State Treasury after covering costs.
• Refunds: no interest paid on refunds of amounts previously collected; refunds may occur for certain post-amnesty overpayments or IRS-adjusted amounts with notice; normal appeal rights remain for additional taxes assessed.

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