SB374 Alabama 2021 Session

Summary

Primary Sponsor

Jack W. WilliamsSenator

Republican

Co-Sponsor

David Sessions

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40-5-5, 40-5-6, 40-5-25, 40-5-27, 40-5-28, 40-5-30, 40-5-33, 40-5-35, 40-5-37 to 40-5-40, inclusive, 40-5-43, 40-5-46 repealed; Secs. 40-5-1 to 40-5-4, inclusive, 40-5-7 to 40-5-15, inclusive, 40-5-17 to 40-5-24, inclusive, 40-5-26, 40-5-29, 40-5-31, 40-5-32, 40-5-34, 40-5-36, 40-5-41,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

SB374 overhauls Alabama's tax-collecting laws by restructuring duties, bonding, and authority of tax collectors, and by changing how ad valorem taxes are collected, recorded, and distributed.

What This Bill Does

The bill substantially revises the law governing tax collectors, repealing and rewriting many provisions and adding new rules and powers. It expands duties for tax collectors (year-round offices, possible precinct visits in smaller counties, deputy appointments with bonds) and revises commission structures. It strengthens delinquent tax collection methods (written demands, a $5 demand fee, 12% interest, garnishment and property levies) and requires publication of insolvent taxpayer lists, with credits and settlements handled through the state Comptroller. It also alters how funds are distributed to state and local agencies, sets final settlement timelines, and imposes certain penalties for late settlements; a new 40-5-48 governs disbursement of ad valorem tax collections. The act takes effect October 1, 2021.

Who It Affects

• Tax collecting officials (county tax collectors and their deputies) by imposing new duties, bonding requirements for deputies, reporting responsibilities, and revised compensation and authority structures.
• Counties, the state, and taxpayers (including delinquent taxpayers, lienholders, purchasers, and license-issuing authorities) by changing collection methods, enforcement tools (garnishment and levy), publication requirements, fund distributions, and final settlement processes.

Key Provisions

• Section 1: Revisions to 40-5-1 to 40-5-4 require year-round office operation, mandatory precinct visits for counties with population 100,000 or less (Oct 1–Jan 1), and bonding/deputy authority rules for tax collecting officials and their deputies.
• Sections 40-5-7 to 40-5-15 and 40-5-17 to 40-5-24 update delinquent tax procedures (written demand notices, $5 demand fee per property, 12% interest on delinquent taxes) and establish receipt requirements and recordkeeping for paid taxes.
• Sections 40-5-20 to 40-5-23 authorize garnishment and attachment mechanisms (levy on third-party indebtedness, notices, and court proceedings) to collect delinquent taxes.
• Sections 40-5-29, 40-5-31 to 40-5-32, 40-5-36, 40-5-44 to 40-5-45 restructure settlements, reporting to the Comptroller, and penalties for late final settlements.
• Section 40-5-48 adds new provisions allowing tax collecting officials to disburse ad valorem tax collections in tandem with motor vehicle tax processes, and sets timelines for disbursement of manufactured home-related amounts.
• Section 20 clarifies Amendments related to local funding requirements, and Section 21 states the act becomes effective October 1, 2021.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation