SB305 Alabama 2016 Session

Summary

Primary Sponsor

Clyde ChamblissSenator

Republican

Session

Regular Session 2016

Title

Taxation, tax liability, payment of with money order or electronic funds prohibited, Sec. 40-29-70 am'd.

Summary

SB305 would impose penalties on taxpayers whose tax payments by money order, check, or electronic funds are not honored.

What This Bill Does

The bill amends Section 40-29-70 to add penalties for dishonored payments. It requires a penalty equal to 10% of the dishonored amount, payable upon notice and demand by the commissioner or other taxing authority, in the same manner as tax. For payments under $500, the penalty is capped at $10 or the lesser of the payment amount, whichever is smaller. There are exceptions: no penalty if the payment was made in good faith with reasonable cause to believe it would be honored, or if settlement is made within 10 days after notification.

Who It Affects

• Taxpayers who tender payments by money order, check, or electronic funds that are not honored would face penalties.
• Taxing authorities (such as the Alabama Department of Revenue) would administer and collect the penalties.

Key Provisions

• Penalty equals 10% of the dishonored payment amount, payable upon notice and demand, in the same manner as tax.
• For payments under $500, the penalty is $10 or the lesser of the payment amount, whichever is smaller.
• The penalty is in addition to any other penalties allowed by law.
• Exceptions: no penalty if the payment was tendered in good faith with reasonable cause to believe it would be honored, or if settlement is made within 10 days after notification.
• Effective date: the bill becomes law on the first day of the third month after passage/approval.

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