SB423 Alabama 2015 Session

Summary

Primary Sponsor

Tim MelsonSenator

Republican

Session

Regular 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

SB423 creates a tax delinquency amnesty program for Alabama taxes (excluding motor fuel) for 2015–2017 to reduce penalties and some interest for eligible taxpayers.

What This Bill Does

The Department of Revenue would establish a tax amnesty program with windows in 2015, 2016, and 2017 for taxes it administers (excluding motor fuel). Eligible taxes are those with assessments issued by May 31, 2015 or for periods beginning before January 1, 2015. Participants must sign an agreement waiving the right to protest or pursue appeals for the covered periods, and penalties would be waived (and some interest waived) depending on the year of approval: 2015 waives half of interest and all penalties; 2016 waives 15% of penalties (no interest); 2017 waives 10% of penalties (no interest). The program’s funds would be used to cover administration and penalties waived, with the rest going to the state treasury.

Who It Affects

• Taxpayers who owe taxes administered by the Alabama Department of Revenue (excluding motor fuel) and apply during the amnesty periods, potentially reducing penalties and some interest.
• Taxpayers with existing liens on their property or who are involved in audits or litigation may participate but must meet conditions (pay lien fees, accept the department's interpretations for issues in dispute, and cover related costs).

Key Provisions

• Creates the Alabama Tax Delinquency Amnesty Act of 2015 and an amnesty program for taxes administered by the Department of Revenue (excluding motor fuel).
• Amnesty periods must be at least two months in 2015, at least one month in 2016, and at least one month in 2017, with eligibility limited to taxes issued before certain dates.
• Eligible taxes include pre-2015 taxes with assessments by May 31, 2015 or taxes for periods beginning before January 1, 2015.
• Participation requires waivers of protest and appeals for the covered periods; penalties are waived depending on the year (2015: half of interest and all penalties; 2016: 15% of penalties; 2017: 10% of penalties; no interest waived in 2016 or 2017).
• Post-amnesty collection penalties can apply up to 20% of any deficiency after amnesty, with possible waivers; refunds for amnesty-related amounts do not include interest; the Department retains penalties waived, administration costs, and related fees, up to $250,000 for advertising, with the remainder going to state funds.

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