SB335 Alabama 2016 Session

Summary

Primary Sponsor

Paul Sanford

Republican

Session

Regular Session 2016

Title

Municipalities, governing bodies, sales and use taxes, rules and regulations, prohibited from contracting with private auditing firms, Secs. 40-2A-3, 40-2A-6, 40-2A-12, 40-2A-13, 40-2A-14, 40-2A-15 am'd.

Summary

SB335 bars municipalities from contracting with private auditing or collecting firms for sales and use tax work.

What This Bill Does

If passed, the bill would prevent a city's governing body from hiring private auditing or collecting firms (as defined by state law) to audit or collect sales taxes. It preserves the city’s authority to set rules for tax returns and administration, but those rules must align with state tax rules. It also makes the prohibition effective starting August 1, 2016.

Who It Affects

• Municipal governing bodies in Alabama, which would no longer be allowed to outsource sales and use tax auditing or collection to private firms
• Private auditing or collecting firms (as defined by Section 40-2A-3), which would be barred from obtaining contracts to handle municipal sales tax auditing or collection

Key Provisions

• Amends Section 11-51-204 to prohibit a municipality's governing body from entering into a contract with a private auditing or collecting firm for sales and use tax work
• Keeps the municipality's duty to adopt rules for returns, assessment, collection, and administration of taxes, with interpretations to remain consistent with corresponding state rules
• The term 'private auditing or collecting firm' is defined by Section 40-2A-3 and used to identify prohibited contractors
• Effective date: the first day of the third month after the bill's passage and gubernatorial approval (August 1, 2016)

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