SB216 Alabama 2017 Session

Summary

Primary Sponsor

Paul Sanford

Republican

Session

Regular Session 2017

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.

Description

Under existing law, the Department of Revenue is authorized to enter into agreements with counties and municipalities to collect and administer local sales, use, rental, and lodging taxes. To recover its costs, the department is authorized to charge a municipality a maximum of two percent of the revenue collected and a county a maximum of five percent of the revenue collected.

This bill would prohibit the Department of Revenue from charging a local governmental entity for which it provides collection and administration for a tax levy of the entity for the cost of filing, payment processing, and remittance services for any tax authorized to be filed under the ONE SPOT system of the department and would define collection and administrative services for those purposes. The bill would also reduce the maximum percentage the department could charge a county to two percent.

This bill would also extend the time period for notification of the Department of Revenue by local governments of new or changed local governmental tax levies from 30 days prior to the effective date of the tax to 60 days prior to the effective date and would provide for liability relief for vendors and business taxpayers who incorrectly collect local rates due to the lack of proper notification of rate changes to the department.

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Subjects

Taxation