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.

Summary

SB216 changes how Alabama collects local taxes by cutting department charges, extending rate-change notifications, standardizing forms, and adding liability relief for rate errors.

What This Bill Does

It stops the Department of Revenue from charging counties and municipalities for filing, payment processing, and remittance services under the ONE SPOT system. It lowers the department’s maximum collection cost for local taxes to 2% and extends the notification period for new or changed local tax levies from 30 to 60 days before they take effect, with liability relief for miscollections due to late or missing notices. It requires standardized multi-jurisdictional tax forms, creates a process for rate notices and errors with potential reimbursement by the department, and provides monthly rate publications and related protections for taxpayers relying on those rates.

Who It Affects

• Local governments (counties and municipalities) levying or administering local taxes: face reduced charges (2% cap), new notification and reporting requirements, and potential liability reimbursements for rate-errors.
• Taxpayers (vendors and businesses) collecting local taxes: receive liability relief if incorrect rates are charged due to department-notified rate issues, and must rely on standardized forms and published rates.

Key Provisions

• Prohibits charging counties/municipalities for filing, payment processing, and remittance services related to taxes filed under the ONE SPOT system; defines these services as ONE SPOT-only.
• Caps the Department of Revenue’s charge for collecting and administering local taxes at 2% of amounts collected (down from higher prior caps).
• Extends levy/rate notification requirement to 60 days before the effective date of new or amended local taxes; if notification is missing, taxpayers are relieved from liability for under- or mis-collected amounts due to the department’s rate publication.
• Implements Section 11-51-210.1 requiring the department to issue rate notices by October 1, 2017; counties/municipalities must report any erroneous published rates by December 1, 2017; department reimburses the difference if its published rate caused underpayment or miscollection, for up to one year.
• Creates standard multi-jurisdictional and singular tax forms for reporting and payment of county and municipal taxes; establishes a committee with ALM and ACCA to develop and promulgate forms and procedures; requires broad adoption and acceptance by local governments.
• Requires monthly publication of current tax rates and provides liability relief for taxpayers relying on those published rates; if the published rate is incorrect, the department reimburses the difference for up to one year from the publication date.

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