HB348 Alabama 2021 Session

Summary

Primary Sponsor

Corley EllisRepresentative

Republican

Session

Regular Session 2021

Title

Revenue and taxation, tax collecting officials, duties and powers thereof futher provided, Sec. 40-5-48 added; Secs. 40-5-5, 40-5-6, 40-5-25, 40-5-27, 40-5-28, 40-5-30, 40-5-33, 40-5-35, 40-5-37 to 40-5-40, inclusive, 40-5-43, 40-5-46 repealed; Secs. 40-5-1 to 40-5-4, inclusive, 40-5-7 to 40-5-15, inclusive, 40-5-17 to 40-5-24, inclusive, 40-5-26, 40-5-29, 40-5-31, 40-5-32, 40-5-34, 40-5-36, 40-5-41, 40-5-42, 40-5-44, 40-5-45 am'd.

Summary

HB348 would broadly overhaul Alabama’s tax-collecting officials and their duties, powers, and procedures, including how taxes are collected, reported, and disbursed, while addressing local government spending rules under Amendment 621.

What This Bill Does

The bill substantially revamps the law governing tax collecting officials and their duties, reorganizing and updating numerous provisions in the 40-5 code sections. It adds a new section (40-5-48) to expand disbursement authority and requires detailed semi-monthly reporting; it repeals or amends several existing sections to tighten, expand, or modify tax collection powers, bonds, commissions, and penalties. It strengthens delinquent-tax procedures (personal demands, certified mail, interest, garnishment, and levy/ sale of property), increases transparency with insolvent and error lists, imposes publication requirements, and sets final settlement procedures and potential penalties for late settlements. The bill also notes a constitutional exception to allow these changes without triggering additional local-vote requirements under Amendment 621, and it would take effect October 1, 2021.

Who It Affects

• Tax collecting officials (counties and related offices): face new duties, bonding requirements for deputies, expanded authority to collect and enforce taxes, revised commissions, reporting duties, and changes to how funds are disbursed and settled.
• Taxpayers and property owners (including delinquent taxpayers, lienholders, purchasers, and those involved in tax sales): face new collection methods (demands, garnishments, notices), higher or more structured interest, potential property seizures or sales for unpaid taxes, and publication requirements revealing insolvent accounts and assessment errors.

Key Provisions

• Extensive revisions to the 40-5 series of the Alabama Code, including adding new authority and reorganizing duties for tax collecting officials and repealing or amending specific sections (e.g., 40-5-5, 40-5-6, 40-5-27, 40-5-28, 40-5-30, 40-5-33, 40-5-35, 40-5-37 to 40-5-40, 40-5-43, 40-5-46).
• Adds Section 40-5-48 authorizing tax collectors to disburse ad valorem taxes and motor vehicle taxes with semi-monthly reports; clarifies disbursement timing for motor vehicle ad valorem taxes and manufactured home fees.
• Strengthens delinquent-taxes enforcement: requires personal written demand (by first-class mail), certified/registered mail if not found, and imposes 12% annual interest on delinquent ad valorem taxes.
• Expands lien, garnishment, and levy powers: allows garnishment against third parties indebted to the delinquent taxpayer and enables levy and sale of delinquent property, with processes for notices and receipts.
• Imposes and clarifies publication and reporting requirements: requires lists of insolvents and errors in assessments to be published or posted, with penalties for failure to publish; mandates annual and final settlements and related duties for the tax collector and county officials.
• Sets final settlement deadlines and provisions for credit and accountability: requires regular settlements with the Comptroller, with fines for late settlements and bond-related consequences for bondholders if the official defaults.
• Constitutional note and effective date: acknowledges Amendment 621’s local-funding protections but asserts the bill fits within exceptions; effective date is October 1, 2021.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation