SB243 Alabama 2015 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

Regular Session 2015

Title

Taxation, business privilege taxes, compliance certificate substituted for a good standing certificate, Sec. 40-2A-10 am'd.

Summary

SB243 replaces the good standing certificate with a compliance certificate showing state tax compliance, and creates a $10 fee to issue it.

What This Bill Does

The bill removes the requirement for a good standing certificate and requires a compliance certificate that confirms the entity filed all required state tax returns and paid taxes due. The Department will charge $10 for each certificate, with the collected funds used for departmental administrative purposes beginning October 1, 2015. It maintains strict confidentiality of most tax information, sets penalties for improper disclosures, and allows limited information sharing among state and local agencies for purposes like tax collection and liability determination, while excluding certain disclosures tied to other specific state laws.

Who It Affects

• Business entities subject to Alabama state taxes: must have filed all required returns and paid taxes to obtain a compliance certificate; pay a $10 fee for the certificate.
• State and local government agencies and their employees: may request, receive, and exchange tax information under the bill's confidentiality and disclosure rules for purposes such as tax collection and determining tax liability.

Key Provisions

• Replaces the good standing certificate with a compliance certificate; eligibility requires filing all state tax returns and paying taxes due.
• Imposes a $10 fee for each compliance certificate; funds are appropriated to the Department for administrative use starting with the fiscal year that begins October 1, 2015.
• Confidentiality of tax returns/information is maintained; violations of disclosure rules are Class A misdemeanors; limited cross-agency sharing is allowed under specified conditions.
• Allows information exchange with other state and local agencies, federal agencies, and other entities for purposes such as collecting taxes and determining tax liability; certain fees may be charged for information sharing.
• Exempts certain disclosures from these confidentiality provisions (e.g., motor vehicle registration/titling, gasoline taxes, vehicle licensing, privilege licenses, tobacco stamps) as described in the bill.
• No damages or attorney fees can be awarded against the state, counties, or municipalities for actions under this section.

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