SB244 Alabama 2015 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

Regular Session 2015

Title

Tax refund, interest paid by Department of Revenue on overpayments, required after receipt of refund petition, Sec. 40-1-44 am'd.

Summary

This bill would require the Department of Revenue to pay interest on eligible tax refunds starting 30 days after it receives a taxpayer's refund petition and supporting documents.

What This Bill Does

It changes how interest on refunds is calculated: interest would be paid on overpayments beginning 30 days after the refund petition and documents are received, with the interest rate tied to the underpayment rate. It also lists exceptions where no interest is paid on certain refunds, and it keeps existing rules for interest on delinquent payments separate from refunds.

Who It Affects

• Taxpayers who overpay taxes and file a refund petition with supporting documentation, who would begin earning interest on the refund after 30 days
• The Alabama Department of Revenue, which would calculate and pay the interest on refunds under the new rule
• Taxpayers receiving refunds that fall under the listed exceptions, who would not receive interest on those overpayments

Key Provisions

• Amends Section 40-1-44 to require interest on properly documented refund petitions to begin 30 days after the department receives the petition and supporting documentation.
• Interest on refunds is computed at the same rate as interest on underpayments and follows the same calculation rules as in the bill.
• No interest is paid on certain overpayments, including specific taxes and refundable items listed in the bill (e.g., some license taxes, tobacco taxes, certain motor fuels taxes, and refunds paid within 90 days for the Alabama Terminal Excise Tax Act).
• Effective date: the act becomes effective on the first day of the third month after passage and approval.

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

Subjects

Tax Refunds