SB278 Alabama 2016 Session

Summary

Primary Sponsor

Paul Sanford

Republican

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

SB278 changes local tax collection rules by cutting fees, extending levy-notification deadlines, and standardizing tax forms to shield taxpayers from mischarges due to rate errors.

What This Bill Does

It lowers the county collection cost cap to 2% and bans charges for filing, payment processing, and remittance services under the ONE SPOT system; it extends the notification period for new or changed levies from 30 to 60 days before the effective date. It creates a system of standard reporting forms for county and municipal taxes and sets up a joint committee to develop them, with provisions for bulk submissions. It also provides liability protections for vendors and taxpayers when rate changes were not properly notified, and establishes rate-notification and correction processes with potential department reimbursements in certain cases.

Who It Affects

• Counties and municipalities – face lower maximum charges (2% for counties; similar cap for municipal taxes) and must follow new ONE SPOT filing/notice requirements and standardized forms.
• Vendors and business taxpayers – receive liability relief if they charged or collected local taxes based on rates that were not properly notified, with specific reimbursement rules in some cases.
• Department of Revenue and local governments – must implement standard tax forms, extend notification timelines, publish rate information, and administer new liability and reimbursement rules.

Key Provisions

• Prohibits charging local governments for ONE SPOT filing, payment processing, and remittance services; defines collection/administration specifically for ONE SPOT.
• Reduces the maximum cost the Department of Revenue can charge counties for collecting/administrating local taxes to 2% (and applies similar limits to municipalities for ONE SPOT filings).
• Extends levy and rate notification requirements to 60 days before the effective date of new or changed local tax levies.
• Creates a standard multi-jurisdictional tax form and a singular jurisdictional tax form for reporting and payment; establishes a joint committee (ALM and ACCA members) to develop these forms and procedures; allows bulk submissions with required taxpayer identifiers.
• Adds Section 11-51-210.1 requiring the Department to notify counties/municipalities of tax rates by Oct 1, 2016; requires counties/municipalities to report erroneous rates by Dec 1, 2016; if not, taxpayers are relieved from liability for undercharged taxes after March 1, 2017; if there is proper notification but a rate conflict, the department reimburses the difference for up to one year.
• Effective dates: Section 1 provisions take effect March 1, 2017; Section 2 provisions take 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