HB289 Alabama 2016 Session

Summary

Primary Sponsor

Anthony DanielsRepresentative

Democrat

Session

Regular Session 2016

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

HB289 would limit Department of Revenue charges to local governments for local tax collection, require longer notice before new or changed local levies, and provide liability relief if rates are miscollected due to notification gaps, while standardizing forms for multi-jurisdictional taxes.

What This Bill Does

It prohibits the Department of Revenue from charging local governments for filing, payment processing, and remittance services for taxes filed under the ONE SPOT system. It lowers the cost cap on county collections to 2% (and similarly caps municipal charges at 2%), extends the levy notification window from 30 to 60 days before the effective date, and provides liability relief for miscollections caused by lack of proper notification. It also adds a rate-notification process (11-51-210.1) with potential reimbursement by the department for rate differences if errors are found, and initiates a move toward standardized reporting forms for county and municipal taxes with a formal committee and timeline.

Who It Affects

• Counties and municipalities that levy local taxes: they would pay no charges for ONE SPOT filing/processing/remittance services, have a reduced cap on collection costs (2%), and gain extended notification requirements plus liability relief for certain mischarges.
• Vendors and business taxpayers: they would receive liability relief if they collect local rates incorrectly due to late or missing rate change notifications, and there could be reimbursement from the Department of Revenue if published rates were incorrect and caused under-collection.

Key Provisions

• Prohibits the Department of Revenue from charging local governments for filing, payment processing, and remittance services for taxes filed under the ONE SPOT system and defines these services for such purposes.
• Reduces the maximum cost the Department may charge counties to 2% of the amount collected (municipal charges similarly capped at 2%); the department shall charge actual costs but not more than 2%.
• Extends the notification period for new or changed local tax levies from 30 days to 60 days before the levy’s effective date and provides liability relief for miscollection when notification is insufficient.
• Adds a rate-notification requirement (Section 11-51-210.1) requiring DOR to notify rates and for counties/municipalities to report erroneous rates with documentation; if misrates occur and parties respond properly, the department may reimburse the difference for up to one year.
• Requires development of standard multi- and single-jurisdiction tax forms for reporting and payment of county and municipal taxes, including a committee to create and adopt these forms and procedures for amendments.
• Section 1 takes effect March 1, 2017; Section 2 (rate-notification provisions) takes effect immediately upon passage.

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