Alabama House Bill HB505 Latest Draft

                            HB505INTRODUCED
Page 0
HB505
2JW3XIK-1
By Representative Sells
RFD: State Government
First Read: 01-Apr-25
1
2
3
4
5 2JW3XIK-1 03/25/2025 KHF (L)KHF 2025-1405
Page 1
First Read: 01-Apr-25
SYNOPSIS:
Under existing law, the Alabama Tax Tribunal was
created as an independent agency to hear appeals of tax
and other matters administered by the Department of
Revenue and certain self-administered counties and
municipalities. 
A taxpayer may appeal to the Alabama Tax
Tribunal or circuit court within 30 days of a final
assessment of tax entered by the department. 
The chief judge of the Alabama Tax Tribunal
receives a salary at the top pay scale within Pay Grade
88 of the state Merit System and associate judges
receive salaries within Pay Grade 84 of the state Merit
System.
This bill would increase the amount of time a
taxpayer may appeal a final assessment to the Alabama
Tax Tribunal or circuit court from 30 days to 60 days. 
This bill would also provide that the judges of
the Alabama Tax Tribunal are compensated at the same
rate as administrative law judges.
A BILL
TO BE ENTITLED
AN ACT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28 HB505 INTRODUCED
Page 2
AN ACT
Relating to the Alabama Tax Tribunal; to amend Sections
40-2A-7, and 40-2A-8, Code of Alabama 1975, regarding the
Taxpayers' Bill of Rights, to extend the time period that
taxpayers have to appeal to the Alabama Tax Tribunal or
circuit court; and amend Section 40-2B-2, regarding the
operation of the Alabama Tax Tribunal, to provide the
compensation of the judges of the tribunal to be the same as
administrative law judges.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Sections 40-2A-7 and 40-2A-8, Code of
Alabama 1975, are amended as follows:
"§40-2A-7
(a) Maintenance of records; audit and subpoena
authority; authority to issue regulations.
(1) In addition to all other recordkeeping requirements
otherwise set out in this title, taxpayers shall keep and
maintain an accurate and complete set of records, books, and
other information sufficient to allow the department to
determine the correct amount of value or correct amount of any
tax, license, permit, or fee administered by the department,
or other records or information as may be necessary for the
proper administration of any matters under the jurisdiction of
the department. The books, records, and other information
shall be open and available for inspection by the department
upon request at a reasonable time and location.
(2) The department may examine and audit the records,
books, or other relevant information maintained by any
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56 HB505 INTRODUCED
Page 3
books, or other relevant information maintained by any
taxpayer or other person for the purpose of computing and
determining the correct amount of value or correct amount of
any tax, license, or fee administered by the department, or
for any other purpose necessary for the proper administration
of any matter under the jurisdiction of the department.
(3) A taxpayer, or any officer of a corporation or
association, or partner of a partnership, or fiduciary of a
trust, or responsible individual of any entity under a duty to
maintain books and records pursuant to this subsection who
fails or refuses to maintain such records and books, or permit
inspection, shall be subject to contempt proceedings in the
circuit court of the judicial circuit in which the person
resides or has a principal place of business, and upon proof
of the fact to the court, may be punished for contempt as
provided in cases of contempt in circuit court.
(4) The department may summon any witness to appear and
give testimony, and summon by subpoena duces tecum any
records, books, or other information of any kind relating to
any matter which the department has authority to administer.
The witness may be summoned by subpoena issued by the
secretary of the department, any circuit judge, any
magistrate, or any district judge, in the name of the
department, directed to any sheriff of Alabama and returnable
to the department. The subpoena may be served in like manner
as subpoenas issued out of any circuit court, or the subpoena
may be served by an authorized employee of the department or
by either U.S. mail with delivery confirmation or certified
mail, return receipt requested. A fee shall be paid to banking
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84 HB505 INTRODUCED
Page 4
mail, return receipt requested. A fee shall be paid to banking
institutions, other similar entities, or any other person
except the taxpayer, for copying, searching for, reproducing,
and transporting any records, books, papers, or other
documents requested or subpoenaed by the department and to
persons who are required to appear as a witness equal to the
fee authorized to be paid by the Internal Revenue Service for
similar services or appearances pursuant to Section26 U.S.C. §
7610 of the Internal Revenue Code of 1986 , as amended. If any
witness has been subpoenaed to appear and testify or appear
and produce records, books, or other information, and fails or
refuses to appear or testify or to produce the books, records,
or other information, that witness shall be subject to
contempt proceedings in the circuit court of the judicial
circuit in which the witness resides, and upon proof of the
fact to a circuit court may be punished for contempt as is
provided in cases of contempt in circuit court.
(5) The department may issue forms and make reasonable
regulations concerning any matter administered by the
department. Regulations promulgatedadopted by the department
shall be issued in accordance with the procedures set forth in
the Alabama Administrative Procedure Act, Chapter 22 of Title
41.
(b) Procedures governing entry of preliminary and final
assessments; appeals therefrom.
(1) ENTRY OF PRELIMINARY ASSESSMENT; FINAL ASSESSMENT
OF UNCONTESTED TAX; EXECUTION OF PRELIMINARY AND FINAL
ASSESSMENTS.
a. If the department determines that the amount of any
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112 HB505 INTRODUCED
Page 5
a. If the department determines that the amount of any
tax as reported on a return is incorrect, or if no return is
filed, or if the department is required to determine value,
the department may calculate the correct tax or value based on
the most accurate and complete information reasonably
obtainable by the department. The department may thereafter
enter a preliminary assessment for the correct tax or value,
including any applicable penalty and interest.
b. Where the amount of tax or value reported on a
return is undisputed by the department, or the taxpayer
consents to the amount of any deficiency, determination of
value, or preliminary assessment in writing as provided by
regulation, the department may immediately enter a final
assessment for the amount of the tax or value, plus applicable
penalty and interest; provided, the department may at any time
enter a final jeopardy assessment pursuant to Sections
40-17A-12, 40-29-90, and 40-29-91.
c. All preliminary and final assessments issued by the
department shall be executed as provided by regulations
promulgatedadopted by the department.
(2) TIME LIMITATION FOR ENTERING PRELIMINARY
ASSESSMENT. Any preliminary assessment shall be entered within
three years from the due date of the return, or three years
from the date the return is filed with the department,
whichever is later, or if no return is required to be filed,
within three years of the due date of the tax, except as
follows:
a. A preliminary assessment may be entered at any time
if no return is filed as required, or if a false or fraudulent
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140 HB505 INTRODUCED
Page 6
if no return is filed as required, or if a false or fraudulent
return is filed with the intent to evade tax.
b. A preliminary assessment may be entered within six
years from the due date of the return or six years from the
date the return is filed with the department, whichever is
later, if the taxpayer omits from the taxable base an amount
properly includable therein which is in excess of 25 percent
of the amount of the taxable base stated in the return.
For purposes of this paragraph:
1. The term "taxable base" means the gross income,
gross proceeds from sales, gross receipts, net worth, or other
amounts on which the tax paid with the return is computed; and
2. In determining the amount omitted from the taxable
base, there shall not be taken into account any amount which
is omitted from the taxable base stated in the return if the
amount is disclosed in the return, or in a statement attached
to the return, in a manner adequate to apprise the department
of the nature and amount of the item.
c. A preliminary assessment entered pursuant to
Sections 40-29-72 and 40-29-73, may be entered within five
years from the due date of the return on which the underlying
tax is required to be reported or within five years of the
date the return is filed, whichever is later.
d.1. In the case of income received during the lifetime
of a decedent, or by his or her estate during the period of
administration, the preliminary assessment of any income tax
shall be entered within 18 months after written request
therefor, filed after the return is made, by the executor,
administrator, or other fiduciary representing the estate of
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168 HB505 INTRODUCED
Page 7
administrator, or other fiduciary representing the estate of
the decedent, but not after the expiration of three years from
the due date of the return or three years from the date the
return is filed with the department, whichever is later.
2. In the case of income received by a corporation
contemplating dissolution, a preliminary assessment of any
income tax shall be entered within 18 months after written
request, by the corporation, filed after the return is made,
but not after the expiration of three years from the due date
of the return or three years from the date the return is filed
with the department, whichever is later. This subparagraph
shall not apply to any corporation unless dissolution is
completed within 18 months of the date of the written notice.
e. If a taxpayer has made the election provided in
subsection (d) or (e) of Section 40-18-8(d) or (e), a
preliminary assessment based on the gain realized as a result
of the involuntary conversion [in the case of subsection (d)
of Section 40-18-8(d)] or a rollover of gain on the sale of a
personal residence [as provided in subsection (e) of Section
40-18-8(e)] may be entered within three years from the date
the taxpayer notified the department of the replacement of the
property in accordance with subsection (d) or (e) of Section
40-18-8(d) or (e), as the case may be, or of his or her
intention not to replace the property.
f. If a taxpayer has validly elected to have the
provisions of subdivision (a) (7) of Section 40-18-6(a)(7) and
subsection (l) of Section 40-18-8(1) apply to an acquisition
of stock before January 1, 1985, any liability of the taxpayer
under this title, solely from amendment of its returns to be
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
195
196 HB505 INTRODUCED
Page 8
under this title, solely from amendment of its returns to be
consistent with that election may be assessed at any time
within five years from the date on which the taxpayer filed
the amended returns with the department.
g.1. When the Internal Revenue Service changes the
amount of federal income tax or federal estate tax in any
manner and the change results in an increase in additional
income tax or estate tax owed under this title, the department
may, at any time within one year after the department is
notified or otherwise learns that the change has become final,
enter a preliminary assessment for additional tax due. The
department shall be allowed to assess the tax within the time
period otherwise allowed by this section. Any tax assessed
within the additional one year period allowed shall be limited
to those items changed on the federal income tax return or
federal estate tax return that affect the income tax liability
or the estate tax liability imposed by this title.
2. When a federal income tax return or federal estate
tax return is changed in any manner after it has been filed
with the Internal Revenue Service, other than by an amended
return, and the change results in an overpayment of taxes
imposed by this title, a petition for refund of the
overpayment may be filed within the later of one year after
the federal changes become final, or within the time allowed
for the filing of a petition for refund as provided in this
chapter. The refund shall be limited to those items changed on
the federal income tax return or federal estate tax return
that affect the income tax liability or estate tax liability
imposed by this title.
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
224 HB505 INTRODUCED
Page 9
imposed by this title.
3. For purposes of this subdivision, the date that a
federal change becomes final is the date on which the taxpayer
and the Internal Revenue Service formally agree to the
changes, or the date of any administrative or judicial order,
judgment, or decree from which no further appeal was or may be
taken.
h. The running of the period of limitations provided
herein for entering a preliminary assessment shall be
suspended for the period that:
1. The taxpayer or the assets of the taxpayer are
involved in a case under Title 11 of the United States Code,
Bankruptcy, and for a period of six months thereafter; or
2. The assets of the taxpayer are in the control or
custody of a court in any proceeding, and for a period of six
months thereafter.
i. The department and the taxpayer may, prior to the
expiration of the period for entering a preliminary assessment
or the filing of a petition for refund, may agree in writing
to extend the time provided for entering the assessment or
filing the petition in this chapter. The tax may be assessed,
or the petition for refund may be filed, at any time prior to
the expiration of the period agreed upon. The period agreed
upon may be extended by subsequent agreements in writing made
before the expiration of the period previously agreed upon.
j. Additional tax may be assessed by the department
within any applicable period allowed above, even though a
preliminary or final assessment has been previously entered by
the department against the same taxpayer for the same or a
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
241
242
243
244
245
246
247
248
249
250
251
252 HB505 INTRODUCED
Page 10
the department against the same taxpayer for the same or a
portion of the same tax period. No taxpayer, however, shall be
subject to unnecessary examination or investigation, and only
one inspection of a taxpayer's books and records relating to
each type of tax administered by the department shall be made
for each taxable year, unless the taxpayer requests otherwise
or unless the commissioner after investigation, notifies the
taxpayer in writing that an additional inspection is
necessary. The commissioner shall promulgateadopt regulations
consistent with those followed by the Internal Revenue Service
with respect to second inspection of a taxpayer's books and
records.
k. The three-year statute of limitations provided by
this subdivision for entering a preliminary assessment shall
be extended as provided in the following sentence, for the
benefit of a self-administered county or municipality, in
cases where: 1.(i) the department has audited a taxpayer and
has entered a final assessment against the taxpayer for
additional sales, use, rental, or lodgings tax; 2.(ii) the
taxpayer owes the same type of tax to the self-administered
county or municipality for the same tax period or periods; and
3.(iii) the taxpayer or its authorized representative has not
contacted the county or municipality or its private auditing
firm, pursuant to its voluntary disclosure program, prior to
the date of entry of the final assessment. In such cases, the
statute of limitations shall not expire until the earlier of
six months from the date of entry of the final assessment or
60 days following the date of mailing or transmittal by
electronic mail by the department to the self-administered
253
254
255
256
257
258
259
260
261
262
263
264
265
266
267
268
269
270
271
272
273
274
275
276
277
278
279
280 HB505 INTRODUCED
Page 11
electronic mail by the department to the self-administered
county or municipality or its private auditing firm of a copy
of the notice of final assessment and any attachments thereto.
Any tax assessed by the self-administered county or
municipality within the additional time period allowed by this
subdivision shall be limited to those items changed or
adjustments included in the final assessment entered by the
department. The Alabama Tax Tribunal, during the months of
January and July of each year, shall publish a list of pending
appeals and the tax or taxes at issue.
(3) SERVICE OF PRELIMINARY ASSESSMENT UPON TAXPAYER.
The preliminary assessment entered by the department, or a
copy thereof, shall be promptly mailed by the department to
the taxpayer's last known address by either first class U.S.
mail or certified mail with return receipt requested, but at
the option of the department, the preliminary assessment may
be delivered to the taxpayer by personal service.
(4) PROCEDURE FOR REVIEW OF DISPUTED PRELIMINARY
ASSESSMENTS; ENTRY AND NOTICE OF FINAL ASSESSMENT.
a. If a taxpayer disagrees with a preliminary
assessment as entered by the department, the taxpayer may file
a written petition for review with the department within 30
days from the date of mailing or personal service, whichever
occurs earlier, of the preliminary assessment setting out the
specific objections to the preliminary assessment. If a
petition for review is timely filed, or if the department
otherwise deems it necessary, the department shall schedule a
conference with the taxpayer for the purpose of allowing the
taxpayer and the department to present their respective
281
282
283
284
285
286
287
288
289
290
291
292
293
294
295
296
297
298
299
300
301
302
303
304
305
306
307
308 HB505 INTRODUCED
Page 12
taxpayer and the department to present their respective
positions, discuss any omissions or errors, and to attempt to
agree upon any changes or modifications to their respective
positions.
b. If a written petition for review:
1. Is not timely filed ,; or
2. Is properly filed, and upon further review the
department determines the preliminary assessment is due to be
upheld in whole or in part, the department may make the
assessment final in the amount of tax due as computed by the
department, with applicable interest and penalty computed to
the date of entry of the final assessment.
c. If a preliminary assessment is not withdrawn or made
final by the department within five years from the date of
entry, the taxpayer may appeal the preliminary assessment to
the Alabama Tax Tribunal or to the appropriate circuit court
as provided by subsectionsubdivision (b)(5) for an appeal of a
final assessment.
d. The final assessment entered by the department, or a
copy thereof, shall be mailed by the department to the
taxpayer's last known address by either : (i) first class U.S.
mail or certified mail with return receipt requested in the
case of assessments of tax of five hundred dollars ($500) or
less; or (ii) certified mail with return receipt requested in
the case of assessments of tax of more than five hundred
dollars ($500). In either case and at the option of the
department, the final assessment, or a copy thereof, may be
delivered to the taxpayer by personal service.
(5) PROCEDURE FOR APPEAL FROM FINAL ASSESSMENT.
309
310
311
312
313
314
315
316
317
318
319
320
321
322
323
324
325
326
327
328
329
330
331
332
333
334
335
336 HB505 INTRODUCED
Page 13
(5) PROCEDURE FOR APPEAL FROM FINAL ASSESSMENT.
a. A taxpayer may appeal to the Alabama Tax Tribunal
from any final assessment entered by the department by filing
a notice of appeal with the Alabama Tax Tribunal within 	3060
days from the date of mailing or personal service, whichever
occurred earlier, of the final assessment, and the appeal, if
timely filed, shall proceed as provided in Chapter 2B for
appeals to the Alabama Tax Tribunal.
b.1. In lieu of the appeal under paragraph a., at the
option of the taxpayer, the taxpayer may appeal from any final
assessment to the Circuit Court of Montgomery County, Alabama,
or to the circuit court of the county in which the taxpayer
resides or has a principal place of business in Alabama, as
appropriate, by filing notice of appeal within 3060 days from
the date of mailing or personal service, whichever occurs
earlier, of the final assessment with both the secretary of
the department and the clerk of the circuit court in which the
appeal is filed.
2. If the appeal is to the circuit court, the taxpayer,
also within the 30-day60-day period allowed for appeal, shall
do one of the following:
(i) Pay the tax, interest, and any penalty shown on the
final assessment.
(ii) File a supersedeas bond with the court for 125
percent of the amount of the tax, interest, and any penalty
shown on the final assessment. The supersedeas bond shall be
executed by a surety company licensed and authorized to do
business in Alabama and shall be conditioned to pay the amount
of tax, interest, and any penalties shown on the final
337
338
339
340
341
342
343
344
345
346
347
348
349
350
351
352
353
354
355
356
357
358
359
360
361
362
363
364 HB505 INTRODUCED
Page 14
of tax, interest, and any penalties shown on the final
assessment, plus applicable interest and any court costs
relating to the appeal, payable to the department, or the
self-administered county or municipality, if applicable.
(iii) File an irrevocable letter of credit with the
circuit court in an amount equal to 125 percent of the amount
of the tax, interest, and any penalty shown on the final
assessment. The irrevocable letter of credit shall be issued
by a financial institution designated as a qualified public
depository by the Board of Directors of the Security for
Alabama Funds Enhancement (SAFE) Program pursuant to Chapter
14A, Title 41. The department or the self-administered county
or municipality, if applicable, shall be named the beneficiary
of the irrevocable letter of credit. The irrevocable letter of
credit shall be conditioned to pay the assessment plus
applicable interest and any court costs relating to the
appeal. The taxpayer may not issue an irrevocable letter of
credit as to a final assessment entered against the same
taxpayer.
(iv) File a pledge or collateral assignment of
securities with the circuit court that constitute eligible
collateral under Chapter 14A, Title 41, in an amount equal to
200 percent of the amount of the tax, interest, and penalty
shown on the final assessment. The pledge or collateral
assignment shall be in favor of the department or the
self-administered county or municipality, if applicable, and
conditioned to pay the assessment plus applicable interest and
any court costs relating to the appeal.
(v) Show to the satisfaction of the clerk of the
365
366
367
368
369
370
371
372
373
374
375
376
377
378
379
380
381
382
383
384
385
386
387
388
389
390
391
392 HB505 INTRODUCED
Page 15
(v) Show to the satisfaction of the clerk of the
circuit court to which the appeal is taken that the taxpayer
has a net worth, on the basis of fair market value, of two
hundred fifty thousand dollars ($250,000) or less, including
his or her homestead.
3. A taxpayer may appeal a final assessment to either
the Alabama Tax Tribunal or to circuit court as provided
herein, even though the taxpayer has paid the tax in issue
prior to taking the appeal.
c.1. The filing of the notice of appeal with the
Alabama Tax Tribunal or, in the case of appeals to the circuit
court, the filing of the notice of appeal with both the
secretary of the department and the clerk of the circuit court
in which the appeal is filed and also the payment of the
assessment in full and applicable interest or the filing of a
supersedeas bond, an irrevocable letter of credit, or a pledge
or collateral assignment of securities as provided herein, are
jurisdictional. Except as set forth in subparagraph 2., if
such prerequisites are not satisfied within the time provided
for appeal, the appeal shall be dismissed for lack of
jurisdiction.
2. Notwithstanding subparagraph 1., should the circuit
court determine that the taxpayer has not satisfied the
requirements of subparagraph b.2., the circuit court shall
order that the taxpayer satisfy such requirements. The
taxpayer may satisfy such requirements at any time within 30
days after service of the court order. No order of dismissal
for lack of jurisdiction shall be entered within 30 days after
service of the court order, and no order of dismissal shall
393
394
395
396
397
398
399
400
401
402
403
404
405
406
407
408
409
410
411
412
413
414
415
416
417
418
419
420 HB505 INTRODUCED
Page 16
service of the court order, and no order of dismissal shall
thereafter be entered if such requirement is satisfied within
such 30-day period.
3. On appeal to the circuit court or to the Alabama Tax
Tribunal, the final assessment shall be prima facie correct,
and the burden of proof shall be on the taxpayer to prove the
assessment is incorrect.
d.1. The Alabama Tax Tribunal, circuit court, or the
appellate court on appeal may increase or decrease the
assessment to reflect the correct amount due.
2. If a final assessment is reduced on appeal, any
overpayment of tax paid by the taxpayer shall immediately be
refunded to the taxpayer by the state, county, municipality,
or other entity to which the overpayment was distributed.
3. No court shall have the power to enjoin the
collection of any taxes due on an assessment so appealed or to
suspend the payment thereof.
(c) Procedure governing petitions for refund; appeals
therefrom.
(1) PETITION FOR REFUND ALLOWED, GENERALLY. Any
taxpayer may file a petition for refund with the department
for any overpayment of tax or other amount erroneously paid to
the department or concerning any refund which the department
is required to administer. If a final assessment for the tax
has been entered by the department, a petition for refund of
all or a portion of the tax may be filed only if the final
assessment plus applicable interest has been paid in full
prior to or with the filing of the petition for refund. The
department may also issue automatic refunds pursuant to
421
422
423
424
425
426
427
428
429
430
431
432
433
434
435
436
437
438
439
440
441
442
443
444
445
446
447
448 HB505 INTRODUCED
Page 17
department may also issue automatic refunds pursuant to
Section 40-29-71. In the case of a petition for refund of
public utilities taxes pursuant to Chapter 21, sales or use
taxes pursuant to Chapter 23, and any transient occupancy tax
pursuant to Chapter 26, a petition may be filed by the
consumer/purchaser who paid the tax directly to the taxpayer
that collected the tax, or by the taxpayer if the taxpayer
remitted in excess of the tax due, however never collected the
tax from the consumer/purchaser, or by the taxpayer if the
consumer/purchaser paid the tax directly to the taxpayer,
provided that a refund shall not be paid to the taxpayer until
after the tax has been credited or repaid to the
consumer/purchaser by the taxpayer. The department may adopt
rules and establish procedures regarding petitions for refund,
including establishing procedures for claiming such refunds on
an annual basis when the amount of a refund is less than
twenty-five dollars ($25 .00) and offsetting any state use tax
liability against any refund otherwise due prior to paying a
refund.
(2) TIME LIMITATION FOR FILING PETITION FOR REFUND;
AUTOMATIC REFUND.
a. Generally. A petition for refund shall be filed with
the department or an automatic refund issued pursuant to
Section 40-29-71, or a credit allowed, within : (i) three years
from the date that the return was filed ,; or (ii) two years
from the date of payment of the tax, whichever is later, or,
if no return was timely filed, two years from the date of
payment of the tax. For purposes of this paragraph, taxes paid
through withholding or by estimated payment shall be deemed
449
450
451
452
453
454
455
456
457
458
459
460
461
462
463
464
465
466
467
468
469
470
471
472
473
474
475
476 HB505 INTRODUCED
Page 18
through withholding or by estimated payment shall be deemed
paid on the original due date of the return.
b. Net Operating Loss Carryback. In lieu of the periods
provided in paragraph a., in the case of a net operating loss
carryback, the period for filing a petition for refund, the
department making an automatic refund or allowing a credit
shall be the period prescribed in 26 U.S.C. Section§
6511(d)(2) for the claiming of a credit or refund.
(3) DEPARTMENT REQUIRED TO GRANT OR DENY REFUNDS; TIME
LIMITATIONS. The department shall either grant or deny a
petition for refund within six months from the date the
petition is filed, unless the period is extended by written
agreement of the taxpayer and the department. The taxpayer
shall be notified of the department's decision concerning the
petition for refund by first class mail, or by either United
States mail with delivery confirmation or by certified mail,
return receipt requested, sent to the taxpayer's last known
address. If the department fails to grant a refund within the
time provided herein, the petition for refund shall be deemed
to be denied.
(4) PROCEDURES IF REFUNDS GRANTED; CREDIT OF REFUND;
PAYMENT OF OTHER TAXES; PAYMENT OF INTEREST. If a petition is
granted, or the department, the Alabama Tax Tribunal, or a
court otherwise determines that a refund is due, the
overpayment shall be refunded to the taxpayer by the state,
county, municipality, or other entity to which the overpayment
was distributed. If the department determines that a refund is
due, the amount of overpayment plus accrued interest may first
be credited by the department against any outstanding final
477
478
479
480
481
482
483
484
485
486
487
488
489
490
491
492
493
494
495
496
497
498
499
500
501
502
503
504 HB505 INTRODUCED
Page 19
be credited by the department against any outstanding final
tax liabilities due and owing by the taxpayer to the
department, and the balance of any overpayment shall, subject
to the setoff provisions of Article 3 of Chapter 18, be
refunded to the taxpayer. If any refund or part thereof is
credited to any other tax by the department, the department
shall provide a written detailed statement to the taxpayer
showing the amount of overpayment, the amount credited for
payment to other taxes, and the amount refunded.
(5) PROCEDURES IF REFUND DENIED; APPEAL.
a. A taxpayer may appeal from the denial in whole or in
part of a petition for refund by filing a notice of appeal
with the Alabama Tax Tribunal within two years from the date
the petition is denied, and the appeal, if timely filed, shall
proceed as hereinafter provided for appeals to the Alabama Tax
Tribunal.
b. In lieu of appealing to the Alabama Tax Tribunal,
the taxpayer may appeal from the denial of a petition for
refund by filing a notice of appeal with the Circuit Court in
Montgomery County, Alabama, or the circuit court of the county
in which the taxpayer resides or has a principal place of
business in Alabama, as appropriate, by filing the notice of
appeal within two years from the date the petition is denied.
The circuit court shall hear the appeal according to its own
rules and procedures and shall determine the correct amount of
refund due, if any.
c. If an appeal is not filed with the Alabama Tax
Tribunal or the circuit court within two years of the date the
petition is denied, then the appeal shall be dismissed for
505
506
507
508
509
510
511
512
513
514
515
516
517
518
519
520
521
522
523
524
525
526
527
528
529
530
531
532 HB505 INTRODUCED
Page 20
petition is denied, then the appeal shall be dismissed for
lack of jurisdiction.
(d) The Department of Revenue shall revise existing
regulations or administrative guidance, or issue new
regulations or administrative guidance, as appropriate, in
conformance with this section.
(e) This section shall apply to all appeals filed after
June 15, 2007. Notwithstanding the prior sentence, in any
appeal to a circuit court which is pending on June 15, 2007,
and in which a supersedeas bond was filed pursuant to, and in
compliance with, the requirements of this section, for double
the amount of the tax, interest, and any penalty shown on the
final assessment, or for double the amount of the final order
of the administrative law judge, such bond may be reduced to
125 percent of such amount shown on the final assessment or in
the final order of the administrative law judge."
"§40-2A-8
(a) The department shall notify a taxpayer in writing
of any act or proposed act or refusal to act concerning the
denial or revocation of a license, permit, or certificate of
title concerning which the taxpayer has any interest. The
notice must be mailed by either first-class U.S. mail, U.S.
mail with delivery confirmation, or certified U.S. mail to the
taxpayer's last known address. Any taxpayer aggrieved by any
act or proposed act or refusal to act concerning the denial or
revocation of a license, permit, or certificate of title by
the department shall be entitled to file a notice of appeal
from such act or proposed act or refusal to act with the
Alabama Tax Tribunal. Such notice of appeal must be filed
533
534
535
536
537
538
539
540
541
542
543
544
545
546
547
548
549
550
551
552
553
554
555
556
557
558
559
560 HB505 INTRODUCED
Page 21
Alabama Tax Tribunal. Such notice of appeal must be filed
within 3060 days of the date notice of such act or refusal to
act is mailed to the taxpayer, and such appeal, if timely
filed, shall proceed as herein provided for appeals to the
Alabama Tax Tribunal.
(b) A taxpayer may elect, but is not required, to file
a notice of appeal with the Alabama Tax Tribunal regarding a
notice of proposed adjustment issued by the department
affecting the taxpayer's net operating loss deductions or
carryovers for purposes of the taxes imposed by Chapters 16
and 18 of this title. Such notice of appeal shall be filed
within the time period prescribed in subsection (a), and the
Alabama Tax Tribunal shall have jurisdiction to determine the
amount of the taxpayer's net operating loss deductions or
carryovers for the tax periods in question.
(c) The department may proceed with the intended action
if no appeal is filed by the taxpayer with the Alabama Tax
Tribunal within the time allowed under subsection (a). If a
designated agent has failed to provide the department with a
bond and any qualifying license as provided in Section
32-8-34, the revocation of designated agent status by the
department shall be effective immediately upon electronic
notice through the system the designated agent uses to process
applications for certificates of title or receipt of written
notice of revocation, whether by U.S. mail or hand delivery.
Otherwise, the revocation of a designated agent status shall
be effective after the time for appeal under this section has
expired. If a new or used motor vehicle dealer, motor vehicle
wholesaler, motor vehicle reconditioner, or motor vehicle
561
562
563
564
565
566
567
568
569
570
571
572
573
574
575
576
577
578
579
580
581
582
583
584
585
586
587
588 HB505 INTRODUCED
Page 22
wholesaler, motor vehicle reconditioner, or motor vehicle
rebuilder licensee has failed to provide the department with
or maintain the required bond or insurance, the revocation of
the regulatory license shall be effective immediately upon
electronic notice through the system the licensee uses to
apply for or renew the regulatory license or upon written
notice or revocation, whether by U.S. mail or hand delivery.
Otherwise, the revocation of the regulatory license shall be
effective after the time for appeal under this section has
expired. The revocation of any motor vehicle certificate of
title or license by the department shall not be final until
either the titled owner and lien holder, if any, consent to
the revocation or the time for filing an appeal to the Alabama
Tax Tribunal has expired. The department may obtain an
injunction in the appropriate circuit court at any time
enjoining a licensee or designated agent from continuing to
operate under a disputed license or designated agent
authority, if the continued operation may cause substantial
loss of revenue, would cause substantial harm to the state or
public, or for such other good reason as determined by the
circuit court. The department may suspend the designated
agent's access to process new applications for certificate of
title until such time as any outstanding title applications
not properly filed by the designated agent are properly filed
with the department.
(d) This section shall not apply to the procedures
governing assessments and refunds which are otherwise provided
for by this chapter, or to intradepartmental personnel actions
or any matter which is the subject of any action then pending
589
590
591
592
593
594
595
596
597
598
599
600
601
602
603
604
605
606
607
608
609
610
611
612
613
614
615
616 HB505 INTRODUCED
Page 23
or any matter which is the subject of any action then pending
in state or federal court, or to the collection of any
liability due the department.
(e) A taxpayer may appeal any matter governed by this
section in accordance with Section 40-2B-2(m) only after
exhausting his or her appeal rights provided under this
section. Any appeal must be from a final or appealable order
issued by the Alabama Tax Tribunal."
Section 2. Section 40-2B-2, Code of Alabama 1975, is
amended as follows:
"§40-2B-2
(a) Statement of Purpose. To increase public confidence
in the fairness of the state tax system, the state shall
provide an independent agency with tax expertise to resolve
disputes between the Department of Revenue and taxpayers,
prior to requiring the payment of the amounts in issue or the
posting of a bond, but after the taxpayer has had a full
opportunity to attempt settlement with the Department of
Revenue based, among other things, on the hazards of
litigation. By establishing an independent Alabama Tax
Tribunal within the executive branch of government, this
chapter provides taxpayers with a means of resolving
controversies that insuresensures both the appearance and the
reality of due process and fundamental fairness.
The tax tribunal shall provide hearings in all tax
matters, except those specified by statute, and render
decisions and orders relating thereto. A tax tribunal hearing
shall be commenced by the filing of a notice of appeal
protesting a tax determination made by the Department of
617
618
619
620
621
622
623
624
625
626
627
628
629
630
631
632
633
634
635
636
637
638
639
640
641
642
643
644 HB505 INTRODUCED
Page 24
protesting a tax determination made by the Department of
Revenue, including any determination that cancels, revokes,
suspends, or denies an application for a license, permit, or
registration. A final decision of the tax tribunal shall have
the same force and effect as, and shall be subject to appeal
in the same manner as, a final decision of a state circuit
court.
It is the intent of the Legislature that this chapter
foster the settlement or other resolution of tax disputes to
the extent possible and, in cases in which litigation is
necessary, to provide the people of Alabama with a fair and
independent dispute resolution forum with the Department of
Revenue. The chapter shall be interpreted and construed to
further this intent.
(b) Tax Tribunal: Establishment.
(1) A tax tribunal is hereby established in the
executive branch of government. The tribunal is referred to in
this chapter as the "Alabama Tax Tribunal."
(2) The Alabama Tax Tribunal shall be separate from and
independent of the authority of the Commissioner of Revenue
and the Department of Revenue. For purposes of this chapter,
the term "Department of Revenue" means the Alabama Department
of Revenue and does not include the governing body of any
self-administered county or municipality.
(3) The Alabama Tax Tribunal shall be created and exist
as of October 1, 2014, but the chief judge shall be appointed
by July 1, 2014, to take any action that is necessary to
enable the Alabama Tax Tribunal to properly exercise the
duties, functions, and powers given the Alabama Tax Tribunal
645
646
647
648
649
650
651
652
653
654
655
656
657
658
659
660
661
662
663
664
665
666
667
668
669
670
671
672 HB505 INTRODUCED
Page 25
duties, functions, and powers given the Alabama Tax Tribunal
under this chapter.
(4) The Alabama Tax Tribunal shall maintain an official
docket and other records as deemed necessary by the chief
judge. Such records may be maintained in electronic format.
(5) Any judge, or any employee of the Alabama Tax
Tribunal as designated in writing by the chief judge, may
administer oaths.
(c) Judges: Number; Appointment; Term of Office;
Removal.
(1) The Alabama Tax Tribunal shall consist of at least
one full-time judge, and there shall be no more than three
judges serving at any one time. If there is more than one
judge, each shall exercise the powers of the Alabama Tax
Tribunal.
(2) The judges of the Alabama Tax Tribunal shall be
appointed by the Governor for a term of 6six years. If the
tribunal has more than one judge, the judges initially
appointed should be given terms of different lengths not
exceeding 6six years, so that all judges' terms do not expire
in the same year.
(3) The Chief Judge of the Alabama Tax Tribunal shall
receive sucha salary as is provided from time to time at the
top pay scale within Pay Grade 88 equivalent to the top of the
pay range assigned to the chief administrative law judge
classification within of the compensation plan of the state
Merit System. Associate judges shall receive such salary 	as is
provided from time to time within Pay Grade 84 which shall not
exceed the top of the pay range assigned to the administrative
673
674
675
676
677
678
679
680
681
682
683
684
685
686
687
688
689
690
691
692
693
694
695
696
697
698
699
700 HB505 INTRODUCED
Page 26
exceed the top of the pay range assigned to the administrative
law judge classification within of the compensation plan of
the state Merit System, as determined by the chief judge. The
judges shall receive no other monetary compensation. This
subsection shall neither increase nor decrease the salary
received by the chief administrative law judge of the
Department of Revenue, who shall become the initial Chief
Judge of the Alabama Tax Tribunal pursuant to this chapter.
(4) Once appointed and confirmed, the judge shall
continue in office until his or her term expires and until a
successor has been appointed, unless otherwise removed as
provided herein.
(5) A vacancy in the Alabama Tax Tribunal occurring
otherwise than by expiration of term shall be filled for the
unexpired term in the same manner as an original appointment.
(6) If more than one judge is appointed, the Governor
shall designate one of the members as chief judge, in this
chapter referred to as the "chief judge." The chief judge
shall be the executive of the Alabama Tax Tribunal, shall have
sole charge of the administration of the Alabama Tax Tribunal,
and shall apportion among the judges all causes, matters, and
proceedings coming before the Alabama Tax Tribunal. The
individual designated as chief judge shall serve in that
capacity at the pleasure of the Governor.
(7) The Governor, subject to the dismissal provisions
of a classified state employee as provided in Section
36-26-10, may remove a judge, after notice and an opportunity
to be heard, for neglect of duty, inability to perform duties,
or malfeasance in office.
701
702
703
704
705
706
707
708
709
710
711
712
713
714
715
716
717
718
719
720
721
722
723
724
725
726
727
728 HB505 INTRODUCED
Page 27
or malfeasance in office.
(8) Whenever the Alabama Tax Tribunal trial docket or
business becomes congested or any judge of the Alabama Tax
Tribunal is absent, is disqualified, or for any other reason
is unable to perform his or her duties as judge, and it
appears to the Governor that it is advisable that the services
of an additional judge or judges be provided, the Governor may
appoint a judge, or judges, pro tempore of the Alabama Tax
Tribunal. Any person appointed judge pro tempore of the
Alabama Tax Tribunal shall have the qualifications set forth
in subdivisions (d)(1) and (d)(2) of subsection (d) and shall
be entitled to serve for a period no longer than six months.
(9) A judge may disqualify himself or herself on his or
her own motion in any matter, and may be disqualified for any
of the causes specified in Title 12, including, but not
limited to, Sections 12-1-12 and 12-1-13.
(d) Judges: Qualifications; Prohibition Against Other
Gainful Employment.
(1) Each judge of the Alabama Tax Tribunal shall be a
citizen of the United States and, during the period of his or
her service, a resident of this state. No person shall be
appointed as a judge , unless, at the time of appointment, the
individual has substantial knowledge of the tax law and
substantial experience making the record in a tax case
suitable for judicial review.
(2) Before entering upon the duties of office, each
judge shall take and subscribe to an oath or affirmation that
he or she will faithfully discharge the duties of the office,
and such oath shall be filed in the office of the Secretary of
729
730
731
732
733
734
735
736
737
738
739
740
741
742
743
744
745
746
747
748
749
750
751
752
753
754
755
756 HB505 INTRODUCED
Page 28
and such oath shall be filed in the office of the Secretary of
State.
(3) Each judge shall devote his or her full time during
business hours to the duties of his or her office. A judge
shall not engage in any other gainful employment or business,
nor hold another office or position of profit in a government
of this state, any other state, or the United States.
Notwithstanding the foregoing provisions, a judge may own
passive interests in business entities and earn income from
incidental teaching or scholarly activities unless the
activities conflict with his or her duties as a judge.
(4) Alabama Tax Tribunal Judgesjudges shall be subject
to disciplinary proceedings before the Judicial Inquiry
Commission to the same extent as circuit judges. The Judicial
Inquiry Commission shall have the authority to remove any
Alabama Tax Tribunal Judgejudge from office, after notice and
an opportunity to be heard, for neglect of duty, inability to
perform duties, malfeasance in office, or other good cause.
(5) Alabama Tax Tribunal Judgesjudges shall be
classified state employees as provided in Section 36-26-10. As
such, a judge, except for appointment, reconfirmation,
removal, and dismissal as provided herein, shall be entitled
to all benefits and protections available to classified state
employees.
(6) The chief judge may employ one Executive Assistant
III as an unclassified service state employee, as provided in
Section 36-26-10(c). All other Alabama Tax Tribunal personnel
shall be appointed or hired by the chief judge, as necessary
for the proper operation of the Alabama Tax Tribunal and shall
757
758
759
760
761
762
763
764
765
766
767
768
769
770
771
772
773
774
775
776
777
778
779
780
781
782
783
784 HB505 INTRODUCED
Page 29
for the proper operation of the Alabama Tax Tribunal and shall
be state employees under the state Merit System. The Executive
Assistant III employed in the Administrative Law Division as
of September 30, 2014, shall be transferred to the Alabama Tax
Tribunal, along with any other Merit System employees employed
by the Administrative Law Division on that date.
(e) Principal Office: Locations; Facilities.
(1) The Alabama Tax Tribunal's principal office shall
be located in Montgomery, Alabama.
(2) The Alabama Tax Tribunal shall conduct hearings at
its principal office. The Alabama Tax Tribunal may also hold
hearings at any place within the state, with a view toward
securing to taxpayers a reasonable opportunity to appear
before the Alabama Tax Tribunal with as little inconvenience
and expense as practicable.
(3) If the appeal involves a tax levied by or on behalf
of only one self-administered county or municipality, the
Alabama Tax Tribunal, if so requested by the self-administered
county or municipality or the taxpayer, shall hold the hearing
either in the county seat of the affected county or the county
seat of the county in which the affected municipality is
located or in the appropriate Department of Revenue taxpayer
service center, according to the proximity of such
municipality or county to the taxpayer service center.
(4) The principal office of the Alabama Tax Tribunal
shall be located in a building that is separate and apart from
the building in which the Department of Revenue is located.
(f) Appointment of Employees, Expenditures of the
Alabama Tax Tribunal.
785
786
787
788
789
790
791
792
793
794
795
796
797
798
799
800
801
802
803
804
805
806
807
808
809
810
811
812 HB505 INTRODUCED
Page 30
Alabama Tax Tribunal.
(1) The Alabama Tax Tribunal shall appoint employees
and may employ temporary court reporters and make such other
expenditures, including expenditures for library,
publications, and equipment, as are necessary to permit it to
efficiently execute its functions.
(2) No employee of the Alabama Tax Tribunal shall act
as attorney, representative, or accountant for others in a
matter involving any tax imposed or levied by this state.
(3) A non-meritnonmerit system employee of the Alabama
Tax Tribunal may be removed by the chief judge, after notice
and an opportunity to be heard, for neglect of duty, inability
to perform duties, malfeasance in office, or for other good
cause.
(4) In addition to the services of a court reporter,
the Alabama Tax Tribunal may contract the reporting of its
proceedings and, in the contract, fix the terms and conditions
under which transcripts will be supplied by the contractor to
the Alabama Tax Tribunal and to other persons and agencies.
(g) Jurisdiction of the Alabama Tax Tribunal.
(1) Except as permitted by subsection (m) relating to
judicial review, or the Constitution of Alabama of 19012022,
the Alabama Tax Tribunal shall be the sole, exclusive, and
final authority for the hearing and determination of questions
of law and fact arising under the tax laws of this state. The
Alabama Tax Tribunal shall have jurisdiction to hear and
determine all appeals pending before the Department of
Revenue's Administrative Law Division on October 1, 2014, and
all subsequent appeals filed with the Alabama Tax Tribunal
813
814
815
816
817
818
819
820
821
822
823
824
825
826
827
828
829
830
831
832
833
834
835
836
837
838
839
840 HB505 INTRODUCED
Page 31
all subsequent appeals filed with the Alabama Tax Tribunal
pursuant to Chapters 2A, 27, and 29 of this title, Chapters 6,
7A, 8, 13, and 20 of Title 32, relating to motor vehicles, or
subdivision (2) of this subsection, relating to
self-administered counties and municipalities.
a. However, such jurisdiction shall also be limited to
only those self-administered counties and municipalities that
choose to participate under the auspices of the Alabama Tax
Tribunal.
b. Such jurisdiction shall not apply to appeals filed
directly with the circuit court from a final assessment
entered by the department or from the department's denial in
whole or in part of a claim for refund.
c. Such jurisdiction shall not apply to the assessment
of ad valorem taxes, except that appeals from final
assessments of value of property of public utilities under
Chapter 21 may be heard by the Alabama Tax Tribunal in
accordance with the procedures set forth in this chapter.
(2) a. Unless a self-administered county or
municipality elects, in the manner prescribed below, to divest
the Alabama Tax Tribunal of jurisdiction over appeals of final
assessments or denied refunds in whole or in part, of any
sales, use, rental, or lodgings taxes levied or collected from
time to time by or on behalf of the self-administered county
or municipality, a taxpayer may appeal a final assessment or
denied refund involving any such tax to the Alabama Tax
Tribunal in accordance with the procedures and requirements
provided in Section 40-2A-7 and this chapter. For purposes of
any appeal filed by a taxpayer pursuant to this section, the
841
842
843
844
845
846
847
848
849
850
851
852
853
854
855
856
857
858
859
860
861
862
863
864
865
866
867
868 HB505 INTRODUCED
Page 32
any appeal filed by a taxpayer pursuant to this section, the
term "department" as used in Section 40-2A-7 means the
governing body of the applicable self-administered county or
municipality and not the Department of Revenue, and the term
"secretary" as used in Section 40-2A-7 means the clerk of the
governing body of the applicable self-administered county or
municipality.
b. Subject to the limitation imposed by paragraph e.,
the election-out under this section shall be made by serving a
copy of the ordinance or resolution evidencing the
election-out, adopted by the governing body of the
self-administered county or municipality pursuant to this
section, with the Alabama Tax Tribunal. Service may be
accomplished by mailing a copy of the ordinance or resolution,
certified by an appropriate official, by either U.S. mail with
delivery confirmation or certified U.S. mail, return receipt
requested, by hand delivery, or by an expedited courier
service to the Alabama Tax Tribunal's office. The Alabama Tax
Tribunal shall promptly publish notice of the election-out
pursuant to paragraph d., and the election shall be effective
on the date that notice is published. Notwithstanding the
foregoing, appeals of final assessments or denied refunds
involving the electing county or municipality that were
pending before the Alabama Tax Tribunal on the date that
notice of the election-out is published shall continue to be
heard and decided by the Alabama Tax Tribunal as if the
election-out had not been made.
c. Subject to the limitation imposed by paragraph e.,
an election-out may be revoked, prospectively, by the
869
870
871
872
873
874
875
876
877
878
879
880
881
882
883
884
885
886
887
888
889
890
891
892
893
894
895
896 HB505 INTRODUCED
Page 33
an election-out may be revoked, prospectively, by the
governing body of the self-administered county or municipality
at any time by resolution or ordinance, a certified copy of
which shall be served on the Alabama Tax Tribunal in the
manner prescribed above. The revocation of an election-out
vests jurisdiction in the Alabama Tax Tribunal over all
appeals of final assessments or denied refunds, in whole or in
part, of the county's or municipality's sales, use, rental,
and lodgings taxes that are entered or denied on or after the
date that notice of revocation is published by the Alabama Tax
Tribunal.
d. At least once a month, the Alabama Tax Tribunal
shall provide the Department of Revenue with a list of all
self-administered counties and municipalities that have
elected-out pursuant to paragraph b. or that have filed a
notice of revocation of their election-out pursuant to
paragraph c. The Department of Revenue shall publish the list
on its website and otherwise make available to the public in
the same manner that the rates and administrators of certain
county and municipal taxes are published by the Department of
Revenue. The Alabama Tax Tribunal may also publish the list on
its own website.
e. A self-administered county or municipality may make
only one election-out under paragraph b. or one revocation
under paragraph c. during each calendar year. If an appeal is
timely filed with the Alabama Tax Tribunal after the notice of
an election-out by the self-administered county or
municipality is published by the Alabama Tax Tribunal, the
appeal shall be deemed timely filed with and transferred to
897
898
899
900
901
902
903
904
905
906
907
908
909
910
911
912
913
914
915
916
917
918
919
920
921
922
923
924 HB505 INTRODUCED
Page 34
appeal shall be deemed timely filed with and transferred to
the self-administered county or municipality. If an appeal is
timely filed with a self-administered county or municipality
after the notice of revocation by the self-administered county
or municipality is published by the Alabama Tax Tribunal, the
appeal shall be deemed timely filed with and transferred to
the Alabama Tax Tribunal.
f. The appeals process for a self-administered county
or municipality that has elected to divest the Alabama Tax
Tribunal of jurisdiction shall function in a manner similar to
the procedures prescribed for appeals to the Alabama Tax
Tribunal. The hearing or appeals officer shall function and
conduct hearings in a manner similar to the Chief Judge of the
Alabama Tax Tribunal and must be impartial and reasonably
knowledgeable of the sales, use, rental, and lodgings tax laws
and the taxing jurisdiction's applicable code or ordinances.
(3) Except as permitted by subsection (m) relating to
judicial review, no person shall contest any matter within the
jurisdiction of the Alabama Tax Tribunal in any action, suit,
or proceeding in any other court of the state. However, such
exclusive jurisdiction shall not be required of those
self-administered counties and municipalities that choose not
to participate under the auspices of the Alabama Tax Tribunal.
With the aforementioned exceptions noted, if a person attempts
to contest any matter with the remaining jurisdiction, then
such action, suit, or proceeding shall be dismissed without
prejudice. The improper commencement of any action, suit, or
proceeding will not extend the time period for commencing a
proceeding in the Alabama Tax Tribunal.
925
926
927
928
929
930
931
932
933
934
935
936
937
938
939
940
941
942
943
944
945
946
947
948
949
950
951
952 HB505 INTRODUCED
Page 35
proceeding in the Alabama Tax Tribunal.
(4) Except in cases involving the denial of a claim for
refund and except as provided in Alabama statute regarding
jeopardy assessments, the taxpayer shall have the right to
have his or her case heard by the Alabama Tax Tribunal prior
to the payment of any of the amounts asserted as due by the
Department of Revenue and prior to the posting of any bond.
(5) If, with or after the filing of a timely notice of
appeal, the taxpayer pays all or part of the tax or other
amount in issue before the Alabama Tax Tribunal has rendered a
decision, the Alabama Tax Tribunal shall treat the taxpayer's
notice of appeal as a protest of a denial of a claim for
refund of the amount so paid.
(6) The Alabama Tax Tribunal shall decide questions
regarding the constitutionality of the application of statutes
to the taxpayer and the constitutionality of regulations
promulgatedadopted by the Department of Revenue, but shall not
have the power to declare a statute unconstitutional on its
face. A taxpayer desiring to challenge the constitutionality
of a statute on its face, at the taxpayer's election, may do
so by one of the following methods:
a. Commence a declaratory action in the courts of
Alabama with respect to the constitutional challenge, and file
a notice of appeal with the Alabama Tax Tribunal with respect
to the remainder of the matter, which proceeding shall be
stayed by the Alabama Tax Tribunal pending final resolution of
the constitutional challenge.
b. File a notice of appeal with the Alabama Tax
Tribunal with respect to issues other than the constitutional
953
954
955
956
957
958
959
960
961
962
963
964
965
966
967
968
969
970
971
972
973
974
975
976
977
978
979
980 HB505 INTRODUCED
Page 36
Tribunal with respect to issues other than the constitutional
challenge, in which the taxpayer preserves the constitutional
challenge until the entire matter, including the
constitutional challenge and the facts related to the
constitutional challenge, is presented to the appellate court.
c. Commence and simultaneously prosecute a declaratory
action in the courts of Alabama with respect to the
constitutional challenge and a proceeding in the Alabama Tax
Tribunal with respect to the remainder of the issues.
(h) Pleadings.
(1) A taxpayer may commence a proceeding in the Alabama
Tax Tribunal by filing a notice of appeal protesting the
Department of Revenue's determination imposing a liability for
tax, penalty, or interest; denying a refund or credit
application; canceling, revoking, suspending, or denying an
application for a license, permit, or registration; or taking
any other action that gives a person the right to a hearing
under the law. The notice of appeal shall be filed in
accordance with the time periods required by Sections 40-2A-7
and 40-2A-8, or any other applicable provision that is within
the jurisdiction of the Alabama Tax Tribunal. For purposes of
this chapter, the term "taxpayer" includes a person :a.(i) who
is challenging the state's jurisdiction over the person ,; and
b.(ii) who has standing to challenge the validity or
applicability of the tax. The notice of appeal filed by the
taxpayer with the Alabama Tax Tribunal shall identify the
final assessment, denied refund, or other act or refusal to
act by the department which is the subject of the appeal, the
position of the appealing party, the basis on which relief
981
982
983
984
985
986
987
988
989
990
991
992
993
994
995
996
997
998
999
1000
1001
1002
1003
1004
1005
1006
1007
1008 HB505 INTRODUCED
Page 37
position of the appealing party, the basis on which relief
should be granted, and the relief sought. A notice of appeal
that does not include all of the above information shall be
sufficient to invoke the jurisdiction of the Alabama Tax
Tribunal. The judge may require a taxpayer to file an amended
notice of appeal if more information is deemed necessary.
(2) If the appeal involves a tax levied by or on behalf
of a self-administered county or municipality, the Alabama Tax
Tribunal shall promptly mail a copy of the notice of appeal by
either U.S. mail with delivery confirmation or certified U.S.
mail to the governing body of the affected county or
municipality and shall provide the taxpayer or its authorized
representative with written notification of the date the copy
was mailed to the governing body. The affected county or
municipality shall file a written answer with the Alabama Tax
Tribunal within 45 days of the date of mailing the notice of
appeal to the affected county or municipality. The judge may
allow the county or municipality additional time, not to
exceed 45 days, within which to file an answer. The answer
shall state the facts and the issues involved and the county's
or municipality's position relating thereto. The judge may
require the county or municipality to file an amended answer
if more information is deemed necessary. The county or
municipality and its authorized representatives may consult
with the Legal Division of the Department of Revenue
concerning the appeal.
(3) The Alabama Tax Tribunal shall notify the Legal
Division of the Department of Revenue in writing that an
appeal has been filed and shall mail a copy of such
1009
1010
1011
1012
1013
1014
1015
1016
1017
1018
1019
1020
1021
1022
1023
1024
1025
1026
1027
1028
1029
1030
1031
1032
1033
1034
1035
1036 HB505 INTRODUCED
Page 38
appeal has been filed and shall mail a copy of such
notification to the taxpayer or its authorized representative.
The Department of Revenue shall file its answer in the Alabama
Tax Tribunal no later than 45 days after its receipt of the
Alabama Tax Tribunal's notification that the taxpayer has
filed a notice of appeal. Upon written request, the Alabama
Tax Tribunal may grant up to 45 additional days to file an
answer. The Department of Revenue shall serve a copy on the
taxpayer's representative or, if the taxpayer is not
represented, on the taxpayer, and shall file proof of such
service with the answer.
(4) The taxpayer may file a reply in the Alabama Tax
Tribunal within 30 days after receipt of the answer. The
taxpayer shall serve a copy on the authorized representative
of the Department of Revenue and shall file proof of such
service with the reply. When a reply has been filed, or, if no
reply has been filed, then 30 days after the filing of the
answer, the controversy shall be deemed at issue and will be
scheduled for hearing.
(5) Either party may amend a pleading once without
leave at any time before the period for responding to it
expires. After such time, a pleading may be amended only with
the written consent of the adverse party or with the
permission of the Alabama Tax Tribunal. The Alabama Tax
Tribunal shall freely grant consent to amend upon such terms
as may be just. Except as otherwise ordered by the Alabama Tax
Tribunal, there shall be an answer or reply to an amended
pleading if an answer or reply is required to the pleading
being amended. Filing of the answer, or, if the answer has
1037
1038
1039
1040
1041
1042
1043
1044
1045
1046
1047
1048
1049
1050
1051
1052
1053
1054
1055
1056
1057
1058
1059
1060
1061
1062
1063
1064 HB505 INTRODUCED
Page 39
being amended. Filing of the answer, or, if the answer has
already been filed, the amended answer, shall be made no later
than 75 days after filing of the amended notice of appeal.
Filing of the reply or, if the reply has already been filed,
the amended reply, shall be made within 30 days after filing
of the amended answer. The taxpayer may not amend a notice of
appeal after expiration of the time for filing a notice of
appeal, if such amendment would have the effect of conferring
jurisdiction on the Alabama Tax Tribunal over a matter that
would otherwise not come within its jurisdiction. An amendment
of a pleading shall relate back to the time of filing of the
original pleading, unless the Alabama Tax Tribunal shall order
otherwise either on motion of a party or on the Alabama Tax
Tribunal's own initiative.
(i) Fees. No filing fee shall be imposed for any appeal
filed with the Alabama Tax Tribunal.
(j) Discovery and Stipulation.
(1) The parties to a proceeding shall make every effort
to achieve discovery by informal consultation or
communication, before invoking the discovery mechanisms
authorized by this section.
(2) The parties to a proceeding shall stipulate all
relevant and non-privileged matters to the fullest extent to
which complete or qualified agreement can or fairly should be
reached. Neither the existence nor the use of the discovery
mechanisms authorized by this section shall excuse failure to
comply with this provision.
(3) Subject to reasonable limitations prescribed by the
Alabama Tax Tribunal, a party may obtain discovery by written
1065
1066
1067
1068
1069
1070
1071
1072
1073
1074
1075
1076
1077
1078
1079
1080
1081
1082
1083
1084
1085
1086
1087
1088
1089
1090
1091
1092 HB505 INTRODUCED
Page 40
Alabama Tax Tribunal, a party may obtain discovery by written
interrogatories; requests for the production of returns,
books, papers, documents, correspondence, or other evidence;
depositions of parties, non-partynonparty witnesses and
experts; and requests for admissions. The Alabama Tax Tribunal
may provide for other forms of discovery.
(4) A judge of the Alabama Tax Tribunal, on the request
of any party to the proceeding, may issue subpoenas requiring
the attendance of witnesses and giving of testimony and
subpoenas duces tecum requiring the production of evidence or
things.
(5) Any employee of the Alabama Tax Tribunal designated
in writing for the purpose by the chief judge may administer
oaths.
(6) Any witness subpoenaed or whose deposition is taken
shall receive the same fees and mileage as a witness in a
circuit court of Alabama.
(7) The Alabama Tax Tribunal may enforce its orders on
discovery and other procedural issues, among other means, by
deciding issues wholly or partly against the offending party.
(k) Hearings.
(1) Proceedings before the Alabama Tax Tribunal shall
be tried de novo and without a jury.
(2) Except as set forth in this chapter or otherwise
precluded by law, the Alabama Tax Tribunal shall take
evidence, conduct hearings, and issue final and preliminary
orders. An appeal may be held in abeyance at the discretion of
the judge or may be submitted for decision on a joint
stipulation of facts without a hearing or as otherwise agreed
1093
1094
1095
1096
1097
1098
1099
1100
1101
1102
1103
1104
1105
1106
1107
1108
1109
1110
1111
1112
1113
1114
1115
1116
1117
1118
1119
1120 HB505 INTRODUCED
Page 41
stipulation of facts without a hearing or as otherwise agreed
by the parties. A judge of the Alabama Tax Tribunal, with or
without a hearing, may dismiss any appeal or grant appropriate
relief to any party, if a party refuses to comply with any
regulation or statute concerning appeals before the Alabama
Tax Tribunal or if a party refuses to comply with any
preliminary order directing the party to take such action as
deemed appropriate by a judge of the Alabama Tax Tribunal.
(3) Hearings shall be open to the public and shall be
conducted in accordance with such rules of practice and
procedure as the Alabama Tax Tribunal may promulgateadopt.
Notwithstanding the foregoing, on motion of either party, the
Alabama Tax Tribunal shall issue a protective order or an
order closing part or all of the hearing to the public, if the
party shows good cause to protect certain information from
being disclosed to the public.
(4) The Alabama Tax Tribunal shall not be bound by the
rules of evidence applicable to civil cases in the circuit
courts of this state. The Alabama Tax Tribunal shall admit
relevant evidence, including hearsay, if it is probative of a
material fact in controversy. The Alabama Tax Tribunal shall
exclude irrelevant and unduly repetitious evidence.
Notwithstanding the foregoing, the rules of privilege
recognized by law shall apply.
(5) Testimony may be given only on oath or affirmation.
(6) The notice of appeal and other pleadings in the
proceeding shall be deemed to conform to the proof presented
at the hearing, unless a party satisfies the Alabama Tax
Tribunal that presentation of the evidence would unfairly
1121
1122
1123
1124
1125
1126
1127
1128
1129
1130
1131
1132
1133
1134
1135
1136
1137
1138
1139
1140
1141
1142
1143
1144
1145
1146
1147
1148 HB505 INTRODUCED
Page 42
Tribunal that presentation of the evidence would unfairly
prejudice the party in maintaining its position on the merits
or unless deeming the taxpayer's notice of appeal to conform
to the proof would confer jurisdiction on the Alabama Tax
Tribunal over a matter that would not otherwise come within
its jurisdiction.
(7) In the case of an issue of fact, the taxpayer shall
have the burden of persuasion by a preponderance of the
evidence in the record, except that the Department of Revenue
shall have the burden of persuasion in the case of an
assertion of fraud and in other cases provided by law.
(8) Proceedings before the Alabama Tax Tribunal shall
be officially reported. The state shall pay the expense of
reporting from the appropriation for the Alabama Tax Tribunal.
(l) Decisions.
(1) The Alabama Tax Tribunal shall render its decision
in writing, including therein a concise statement of the facts
found and the conclusions of law reached. The Alabama Tax
Tribunal's decision, subject to law, shall grant such relief,
invoke such remedies, and issue such orders as it deems
appropriate to carry out its decision. A judge may enter a
preliminary order directing one or more parties to take such
action as deemed appropriate or referring any issue or issues
in dispute to the Department of Revenue's Taxpayer Advocate
for consideration if the issue or issues relate to a tax
administered by the Department of Revenue. A judge, after a
hearing or after a case is otherwise submitted for decision,
may issue an opinion and preliminary order, which shall
include findings of fact and conclusions of law. The opinion
1149
1150
1151
1152
1153
1154
1155
1156
1157
1158
1159
1160
1161
1162
1163
1164
1165
1166
1167
1168
1169
1170
1171
1172
1173
1174
1175
1176 HB505 INTRODUCED
Page 43
include findings of fact and conclusions of law. The opinion
and preliminary order may direct the department to recompute a
taxpayer's liability or the amount of a refund due or for any
party to take such action as specified in the preliminary
order.
(2) The Alabama Tax Tribunal shall render its
preliminary or final order, as applicable, no later than six
months after submission of the last brief filed subsequent to
completion of the hearing or, if briefs are not submitted,
then no later than six months after completion of the hearing.
The Alabama Tax Tribunal may extend the six-month period, for
good cause, up to three additional months.
(3) If the Alabama Tax Tribunal fails to render either
a preliminary order or a final order within the prescribed
period, either party may institute a proceeding in the circuit
court to compel the issuance of such decision.
(4) The Alabama Tax Tribunal's decision shall finally
decide the matters in controversy, unless any party to the
matter timely appeals the decision as provided in this
chapter.
(5) Any party may apply for rehearing from any final
order or opinion and preliminary order of the Alabama Tax
Tribunal; provided, however, the application must be filed
within 15 days from the date of entry of such order. The
application for rehearing shall specify the reasons and
supporting arguments why such order is incorrect and should be
reconsidered. The timely filing of an application for
rehearing from a final order shall suspend the time period for
filing an appeal to circuit court as provided in this chapter.
1177
1178
1179
1180
1181
1182
1183
1184
1185
1186
1187
1188
1189
1190
1191
1192
1193
1194
1195
1196
1197
1198
1199
1200
1201
1202
1203
1204 HB505 INTRODUCED
Page 44
filing an appeal to circuit court as provided in this chapter.
If an application for rehearing is timely filed, the judge
shall thereafter issue a final or other order on rehearing,
either with or without a hearing on the application, at the
discretion of the judge. The time for filing a notice of
appeal to circuit court shall begin anew on the date of entry
of the final order on rehearing.
(6) The Alabama Tax Tribunal's final order shall have
the same effect, and shall be enforced in the same manner, as
a judgment of a circuit court of the state, unless altered or
amended on appeal or rehearing.
(7) The Alabama Tax Tribunal's interpretation of a
taxing statute subject to contest in one case shall be
followed by the Alabama Tax Tribunal in subsequent cases
involving the same statute, and its application of a statute
to the facts of one case shall be followed by the Alabama Tax
Tribunal in subsequent cases involving similar facts, unless
the Alabama Tax Tribunal's interpretation or application
conflicts with that of an appellate court or the Alabama Tax
Tribunal provides satisfactory reasons for reversing prior
precedent.
(m) Appeals.
(1) Other than an application for rehearing to the
Alabama Tax Tribunal, the exclusive remedy for review of any
final or other appealable order issued by the Alabama Tax
Tribunal shall be by appeal to the appropriate circuit court.
(2) The taxpayer, a self-administered county or
municipality whose tax is within the jurisdiction of the
Alabama Tax Tribunal, or the Department of Revenue may appeal
1205
1206
1207
1208
1209
1210
1211
1212
1213
1214
1215
1216
1217
1218
1219
1220
1221
1222
1223
1224
1225
1226
1227
1228
1229
1230
1231
1232 HB505 INTRODUCED
Page 45
Alabama Tax Tribunal, or the Department of Revenue may appeal
to circuit court from a final or other appealable order issued
by the Alabama Tax Tribunal by filing a notice of appeal with
the appropriate circuit court within 30 days from the date the
final or other appealable order was entered. A copy of the
notice of appeal shall be submitted to the Alabama Tax
Tribunal within the 30-day appeal period. The Alabama Tax
Tribunal shall thereafter prepare a record on appeal, which
shall include the orders of the Alabama Tax Tribunal, the
stenographic transcript of the hearing before the Alabama Tax
Tribunal, the pleadings, and all exhibits and documents
admitted into evidence. The appeal shall be filed in the
following circuit courts:
a. Any appeal by the Department of Revenue or a
self-administered county or municipality whose tax is within
the jurisdiction of the Alabama Tax Tribunal shall be filed
with the circuit court of the county in which the taxpayer
resides or has a principal place of business in Alabama.
b. Any appeal by the taxpayer shall be filed with the
Circuit Court of Montgomery County, Alabama, or with the
circuit court of the county in which the taxpayer resides or
has a principal place of business in Alabama.
c. Notwithstanding paragraphs a. and b., if the
taxpayer does not reside in Alabama or have a principal place
of business in Alabama, any appeal by the taxpayer, the
Department of Revenue, or a self-administered county or
municipality whose tax is within the jurisdiction of the
Alabama Tax Tribunal shall be filed with the Circuit Court of
Montgomery County, Alabama.
1233
1234
1235
1236
1237
1238
1239
1240
1241
1242
1243
1244
1245
1246
1247
1248
1249
1250
1251
1252
1253
1254
1255
1256
1257
1258
1259
1260 HB505 INTRODUCED
Page 46
Montgomery County, Alabama.
(3) If the appeal to circuit court pursuant to
subdivisionparagraph (2)b. is by a taxpayer from a final order
involving a final assessment, the taxpayer shall, within the
30-day period allowed for appeals, satisfy one of the
requirements under Section 40-2A-7(b)(5)b.2., relating to
appeals to circuit court.
(4) The appeal to circuit court from a final or other
appealable order issued by the Alabama Tax Tribunal shall be a
trial de novo, except that the order shall be presumed prima
facie correct and the burden shall be on the appealing party
to prove otherwise. The circuit court shall hear the case by
its own rules and shall decide all questions of fact and law.
The administrative record and transcript shall be transmitted
to the reviewing court as provided herein and shall be
admitted into evidence in the trial de novo, subject to the
rights of either party to object to any testimony or evidence
in the administrative record or transcript. With the consent
of all parties, judicial review may be on the administrative
record and transcript. The circuit court shall affirm, modify,
or reverse the order of the Alabama Tax Tribunal, with or
without remanding the case for further hearing, as justice may
require.
(n) Representation.
(1) Appearances in proceedings conducted by the Alabama
Tax Tribunal may be by the taxpayer; by an attorney admitted
to practice in this state, including an attorney who is a
partner or member of, or is employed by, an accounting or
other professional services firm; by an accountant licensed in
1261
1262
1263
1264
1265
1266
1267
1268
1269
1270
1271
1272
1273
1274
1275
1276
1277
1278
1279
1280
1281
1282
1283
1284
1285
1286
1287
1288 HB505 INTRODUCED
Page 47
other professional services firm; by an accountant licensed in
this state; or by an authorized representative. The Alabama
Tax Tribunal may allow any attorney or accountant authorized
to practice or licensed in any other jurisdiction of the
United States to appear and represent a taxpayer in
proceedings before the Alabama Tax Tribunal for a particular
matter. In addition, the Alabama Tax Tribunal may
promulgateadopt rules and regulations permitting a taxpayer to
be represented by an officer, employee, partner, or member.
(2) The department shall be represented by an
authorized representative in all proceedings before the
Alabama Tax Tribunal.
(o) Publication of Decisions.
The Alabama Tax Tribunal shall index and publish its
final decisions in such print or electronic form as it deems
best adapted for public convenience. Such publications shall
be made permanently available and constitute the official
reports of the Alabama Tax Tribunal.
(p) Service of Process.
(1) Mailing by first class or certified or registered
mail, postage prepaid, to the address of the taxpayer given on
the taxpayer's notice of appeal, or to the address of the
taxpayer's representative of record, if any, or to the usual
place of business of the Department of Revenue, shall
constitute personal service on the other party. The Alabama
Tax Tribunal, by rule, may prescribe that notice by other
means shall constitute personal service and, in a particular
case, may order that notice be given to additional persons or
by other means.
1289
1290
1291
1292
1293
1294
1295
1296
1297
1298
1299
1300
1301
1302
1303
1304
1305
1306
1307
1308
1309
1310
1311
1312
1313
1314
1315
1316 HB505 INTRODUCED
Page 48
by other means.
(2) Mailing by registered or certified mail and
delivery by a private delivery service approved by the
Internal Revenue Service in accordance with Section26 U.S.C. §
7502(f) of the Internal Revenue Code of 1986 , as amended,
shall be deemed to have occurred, respectively, on the date of
mailing and the date of submission to the private delivery
service.
(3) Timely mailed document considered to be timely
filed.
(q) Rules and Forms.
The Alabama Tax Tribunal is authorized to promulgate
and adopt all reasonable rules pursuant to the Alabama
Administrative Procedure Act and forms as may be necessary or
appropriate to carry out the intent and purposes of this
chapter.
(r) Budget of Alabama Tax Tribunal.
The Chief Judge of the Alabama Tax Tribunal may
contract or enter into agreements with any private or
governmental agency, upon approval of the Director of Finance,
for the rental of office space, and the rental or purchase of
equipment, administrative or other support services, supplies,
and all other property or services necessary for the operation
of the Alabama Tax Tribunal. The funds for the operation of
the Alabama Tax Tribunal shall be administered by the Alabama
Tax Tribunal, through the chief judge. With respect to the
fiscal year beginning October 1, 2014, there shall be
transferred from the Revenue Department Administrative Fund to
the Alabama Tax Tribunal the amount of four hundred
1317
1318
1319
1320
1321
1322
1323
1324
1325
1326
1327
1328
1329
1330
1331
1332
1333
1334
1335
1336
1337
1338
1339
1340
1341
1342
1343
1344 HB505 INTRODUCED
Page 49
the Alabama Tax Tribunal the amount of four hundred
twenty-five thousand dollars ($425,000). The amount
transferred from the Revenue Department Administrative Fund
shall be disbursed to the Alabama Tax Tribunal in four equal
increments, at the beginning of each quarter of the fiscal
year. Thereafter, the The Chief Judge of the Alabama Tax
Tribunal, shall prepare an annual budget and funds shall be
appropriated annually by the Legislature from the Revenue
Department Administrative Fund to be used exclusively for the
operation of the Alabama Tax Tribunal."
Section 3. Section 1 of this act shall become effective
on October 1, 2025 and Section 2 of this act shall become
effective on June 1, 2025.
1345
1346
1347
1348
1349
1350
1351
1352
1353
1354
1355
1356