HB89 Alabama 2016 Session

Summary

Primary Sponsor

Steve McMillan

Republican

Session

Regular Session 2016

Title

Taxation, collection of fees for nonpayable money order and nonpayable electronic funds, Sec. 40-29-70 am'd

Summary

HB89 would impose penalties on taxpayers who pay taxes with money orders or electronic funds that are dishonored.

What This Bill Does

It would amend Section 40-29-70 to require a penalty equal to 10% of the dishonored payment amount, payable after the tax department issues notice. For payments under $500, the penalty would be the lesser of $10 or the payment amount. The penalty would not apply if the payment was made in good faith with reasonable cause to believe it would be honored, or if the taxpayer settles within 10 days after notification. The penalty would be in addition to other penalties and the law would take effect on the first day of the third month after passage and governor’s approval.

Who It Affects

• Taxpayers who submit a check, money order, or electronic funds to pay taxes that are dishonored, who would owe the penalty.
• Alabama Department of Revenue (the commissioner or delegate), which would issue notice and collect the penalty.

Key Provisions

• Penalty for dishonored payments: 10% of the dishonored payment amount, payable after notice and demand by the commissioner or delegate, in addition to other penalties.
• Small payments: if the dishonored amount is under $500, the penalty is the lesser of $10 or the payment amount.
• Exceptions: no penalty if the payment was tendered in good faith with reasonable cause to believe it would be honored, or if the taxpayer settles within 10 days after notification of a bad payment.
• Effective date: becomes law on the first day of the third month after its passage and approval by the Governor.

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