SB322 Alabama 2015 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Paul Sanford
Republican
Session: Regular Session 2015
Title: Revenue Department, notification requirements by local governments regarding tax levies, revised, certain collection services authorized at no cost, Sec. 11-51-210.1 added; Secs. 11-3-11.3, 11-51-183, 11-51-208, 11-51-210, 40-12-4, 40-12-7 am'd.
Summary: The bill expands the Department of Revenue role in local taxes, lowers the cost cap for collecting local taxes, strengthens rate change notifications, and creates standardized reporting forms with liability protections for mischarges.
What This Bill Does
It reduces the cap on the Department of Revenue's cost for collecting county taxes from 5% to 2% of the amount collected, with charges limited to actual costs and no extra fees for ONE SPOT filing services. It authorizes the Department of Revenue to collect and administer county taxes (such as sales, use, rental, lodgings, and tobacco taxes) for counties that request it, with distributions to counties after deducting the department's costs. It extends levy and rate notification requirements to the Department of Revenue, requiring counties to provide certified notices before tax changes take effect, and it provides liability relief for mischarges if proper notification is not provided. It creates a framework for standard multi-jurisdictional tax forms (11-51-210.1), with a committee to develop forms, a process for adoption, and monthly publication of current rates; it also allows bulk submissions and sets rules to preserve taxpayer accountability for errors.

Who It Affects
Counties and municipalities that levy local taxes: they may have the Department of Revenue collect and administer their taxes, face a lower cost cap, and must follow new notification and form requirements.
Taxpayers and vendors paying local taxes: they gain liability relief for mischarges due to rate notification issues and may be eligible for refunds when incorrect rates are published or relied upon.

Key Provisions
Cap on cost of administration for county taxes reduced from 5% to 2% of the amount collected, with the department charging actual costs not to exceed 2% and monthly warrants issued by the state Comptroller for collection and administration charges.
The Department of Revenue may collect and administer county taxes (sales, use, rental, lodgings, tobacco, and other local taxes) for counties that request it, using the same authority as for state taxes and providing related reports and forms to counties.
County levy and rate notification requirements are extended to the department, including deadlines for forwarding certified ordinances/resolutions and the effective date rules for new levies or amendments, with taxpayer relief if proper notification is not provided.
Creation of Section 11-51-210.1 to develop standard multi-jurisdictional and singular tax reporting forms, a committee to develop and adopt these forms, and monthly publication of current rates; bulk submissions by taxpayers are allowed with proper identification.
Liability and refunds for rate errors: if the department publishes an incorrect rate relied upon by taxpayers, refunds may be issued for up to one year; if a county or municipality properly notifies the department of an error and a department rate conflicts with that notification, the department is responsible for refunds during that period; if proper notification is not given, the department is not liable.

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