HB375 Alabama 2016 Session

Summary

Primary Sponsor

Paul W. LeeRepresentative

Republican

Session

Regular Session 2016

Title

Municipalities, governing bodies, sales and use taxes, rules and regulations, prohibited from contracting with private auditing or collecting firm, Sec. 11-51-204 am'd.

Summary

HB375 would bar Alabama municipal governments from hiring private auditing or collecting firms to handle sales and use tax work.

What This Bill Does

If enacted, the bill amends Section 11-51-204 to prohibit the governing body of a municipality from entering into contracts with private auditing or collecting firms. Municipalities would still be allowed to adopt rules for collecting taxes, and those rules must align with state Department of Revenue guidance. The law would take effect on the first day of the third month after the governor approves it.

Who It Affects

• Municipal governing bodies: prohibited from contracting with private auditing or collecting firms for sales and use tax administration
• Private auditing or collecting firms: would lose the ability to bid on or hold municipal tax administration contracts

Key Provisions

• Prohibits municipalities from contracting with private auditing or collecting firms for sales and use tax administration
• Preserves municipalities' power to adopt tax administration rules, with requirements that those rules be consistent with state Department of Revenue rules and align with the broader tax framework

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

Subjects

Municipalities