SB18 Alabama 2016 1st Special Session Session

Under existing law, the Department of Revenue is required to pay interest on any refund of taxes erroneously paid to the department

Interest is calculated from the date of overpayment, except for interest on a refund resulting from a net operating loss carryover or carryback, computed from the date of filing of the claim for refund, and interest on a claim resulting from overpayment of withholding and excess estimated tax payments computed from 90 days from the due date of the return

This bill would revise the requirement for payment of interest for refunds, other than those resulting from a net loss carryover or carryback or over withholding and excess estimated tax payments, from the date of overpayment to 30 days after receipt by the department of a properly documented refund petition

Also, under existing law, the refund of overpayments on taxes paid on gasoline used for agriculture or static testing purposes is excepted from the payment of interest. This bill would remove that exception

To amend Section 40-1-44, Code of Alabama 1975, to revise the tax refunds on which and the time when the Department of Revenue is required to begin paying interest on certain tax refunds.