1 SB374
2 212595-3
3 By Senators Williams and Sessions
4 RFD: Banking and Insurance
5 First Read: 01-APR-21
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 SB374
1 SB374
2
3
4 ENROLLED, An Act,
5 Relating to tax collectors; to amend Sections 40-5-1
6 to 40-5-4, inclusive; to repeal Sections 40-5-5 and 40-5-6; to
7 amend Sections 40-5-7 to 40-5-15, inclusive, and Sections
8 40-5-17 to 40-5-24, inclusive; to repeal Section 40-5-25; to
9 amend Section 40-5-26; to repeal Sections 40-5-27 and 40-5-28;
10 to amend Section 40-5-29; to repeal Section 40-5-30; to amend
11 Sections 40-5-31 and 40-5-32; to repeal Section 40-5-33; to
12 amend Section 40-5-34; to repeal Section 40-5-35; to amend
13 Section 40-5-36; to repeal Sections 40-5-37 to 40-5-40,
14 inclusive; to amend Sections 40-5-41 and 40-5-42; to repeal
15 Section 40-5-43; to amend Sections 40-5-44 and 40-5-45; to
16 repeal Section 40-5-46 of the Code of Alabama 1975; to add
17 Section 40-5-48 to the Code of Alabama 1975, to substantially
18 revise the law governing tax collectors and the duties and
19 powers thereof; and in connection therewith would have as its
20 purpose or effect the requirement of a new or increased
21 expenditure of local funds within the meaning of Amendment 621
22 of the Constitution of Alabama of 1901, now appearing as
23 Section 111.05 of the Official Recompilation of the
24 Constitution of Alabama of 1901, as amended
25 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
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1 Section 1. Sections 40-5-1 to 40-5-4, inclusive,
2 Code of Alabama 1975, are amended to read as follows:
3 "40-5-1.
4 "The tax collector shall keep his office open at the
5 courthouse all the year round. In all counties of the state
6 having a population of 100,000 or less according to the last
7 or any subsequent federal census, the tax collector shall be
8 required between October 1 and January 1 in each year to visit
9 each precinct in the county by himself or by deputy to collect
10 the taxes, and he shall give the same notice of such
11 appointments as is given by the tax assessor. The county
12 commission may by order duly entered on the minutes relieve
13 the tax collector from making the visits to each voting place
14 above provided for when in the judgment of the commission it
15 is deemed advisable and shall by order specify the places in
16 the county which the tax collector shall visit. As used in
17 this chapter, the term "tax collecting official" means the
18 elected or appointed official charged with collecting ad
19 valorem taxes and other prescribed fees on real and personal
20 property in the county.
21 "40-5-2.
22 The tax collector is authorized to collecting
23 official may appoint deputies, and the acts of such. The
24 deputies shall be recognized as his acts, and he shall be
25 responsible for any loss sustained by any taxpayer or by the
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1 state or county by reason of the acts done by such deputies in
2 the line of their powers and duties. Such deputies shall
3 receive no compensation for their services out of the state or
4 county revenue, except as otherwise provided by law errors
5 that they make. The bond for each deputy shall be not less
6 than 50 percent of the tax collecting official's bond. The
7 expense of the bond shall be paid from the county general
8 fund.
9 "40-5-3.
10 Before assuming office, the tax collector collecting
11 official must shall execute a bond in duplicate with a surety
12 company authorized to do business in Alabama, payable to the
13 State of Alabama, in an amount to be determined for every
14 county by the Comptroller. The amount of the bond for each tax
15 collector collecting official will shall be set at the
16 beginning of his or her elected or appointed term for the
17 duration of such the term. A new bond for an additional amount
18 may be required whenever, in the judgment of the Comptroller,
19 the public welfare demands such action. The amount of the bond
20 will shall be determined by the use of the following table
21 based on a percentage of the total annual taxes collected, as
22 recorded in the latest audit report for each office published
23 at least four months prior to the date the bond is required to
24 be filed:
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1 TABLE FOR COMPUTING AMOUNT OF TAX COLLECTOR'S COL-
2 LECTING OFFICIAL'S BOND.
3 Over But Not Over Amount of Bond
4 Zero $ 250,000 $25,000
5 $ 250,000 $1,000,000 $25,000 + 5%
6 $1,000,000 _____ $62,500 + 1%
7 The bond of the tax collector collecting official
8 shall be approved by the Comptroller, conditioned faithfully
9 to discharge on the faithful performance of the duties of his
10 or her office, which are or may be required of him by law
11 during the time he continues therein or discharges any of the
12 duties thereof. The bond, in duplicate, shall be sent to the
13 office of the Comptroller on or before September 1, next after
14 his or her election or, if appointed, prior to the date that
15 he or she is to assume the duties of the office, for the
16 Comptroller's approval. One copy shall be retained and filed
17 in the Comptroller's office, and one copy shall be returned to
18 the office of the probate judge of probate to be filed and
19 recorded in his or her office. The cost of the bond required
20 by this section shall be paid out of the general fund of the
21 county on a warrant of the county commission, and the same
22 shall be a preferred claim against the county.
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1 "40-5-4.
2 "(a) The tax collector shall be entitled to receive
3 commissions on taxes collected by him, not including taxes on
4 real estate bid in by the state at tax sales and taxes which
5 would be due on property except for the provisions of the
6 presently applicable law exempting homesteads from state
7 taxes, as follows: In counties where collections, not Not
8 including taxes on real estate bid in by the state at tax
9 sales and taxes which that would be due on property except for
10 the provisions of the presently applicable law exempting
11 homesteads from state taxes, do not exceed $12,000, the tax
12 collecting official, in addition to the commissions on
13 assessments pursuant to Section 40-4-2, shall collect
14 commissions from the state and county general funds at the
15 following rate rates of commission:
16 "(1) shall be 10 Ten percent on the first five
17 thousand dollars ($5,000), five.
18 "(2) Five percent on the next four thousand dollars
19 ($4,000).
20 "(3) Four percent on the next three thousand dollars
21 ($3,000).
22 "(4) One and one-half percent on the remainder up to
23 fifteen thousand dollars ($15,000). and four
24 "(5) One percent on the remainder above $15,000.
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1 "(b) The commission herein provided for is to be
2 calculated on collections for real property and personal
3 property, except motor vehicles, for the general fund of the
4 state and county. In counties where the collections, not
5 including taxes on real estate bid in by the state at tax
6 sales and taxes which would be due on property except for the
7 provisions of the presently applicable law exempting
8 homesteads from state taxes, exceed $12,000, the commissions
9 shall be as above declared up to $12,000, and one and one-half
10 percent on the remainder up to $15,000, and one percent on the
11 remainder above $15,000. The commissions for collections of
12 taxes on motor vehicles for the general fund of the state and
13 county shall be calculated on the same basis and at the same
14 rate as provided for the collections on real property and
15 personal property other than motor vehicles for the general
16 fund of the state and county. The amount of the commissions on
17 taxes which would be due on property except for the provisions
18 of the presently applicable law exempting homesteads from
19 state taxes shall inure to the benefit of the General Fund of
20 the state only and shall be covered into the Treasury to the
21 credit of said fund. He shall also be entitled to receive two
22 percent on all collections made by him of special taxes,
23 whether such special taxes are levied for the state or county,
24 to be paid out of such special taxes. The tax collector
25 collecting official, pursuant to Section 40-4-2, shall receive
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1 two percent commissions on all special county or district
2 taxes levied for school purposes. The collector may retain his
3 commissions upon collections when he makes payment into the
4 Treasury collect and disburse all commissions on special taxes
5 at a rate of two percent for collecting and two percent for
6 assessing to the county general fund, unless specifically
7 exempted by law.
8 "(c) In Jefferson County, no fees or commissions
9 shall be allowed for collecting the three-mill county school
10 tax and the three-mill district school tax.
11 "In all counties having a population of 225,000 or
12 more inhabitants according to the last or any subsequent
13 decennial federal census, the license commissioner, director
14 of revenue, or other official in such counties now charged
15 with the duty of collecting ad valorem taxes due the state and
16 county on motor vehicles shall continue to collect said ad
17 valorem tax due the state and county on motor vehicles and all
18 fees, charges, and commissions for collecting said ad valorem
19 tax on motor vehicles provided in this section to be paid to
20 the tax collector shall be paid to said license commissioner,
21 director of revenue, or other official now charged with the
22 collection of said ad valorem tax on motor vehicles in such
23 county, and he shall pay said commissions into the county
24 treasury, and all commissions collected by the tax collector
25 in such counties who is on a salary basis shall be paid into
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1 the county treasury, and said commissions so collected and
2 paid into the county treasury shall be the property of the
3 county."
4 Section 2. Sections 40-5-5 and 40-5-6, Code of
5 Alabama 1975, are repealed.
6 Section 3. Sections 40-5-7 to 40-5-15, inclusive,
7 and 40-5-17 to 40-5-24, inclusive, are amended to read as
8 follows:
9 "40-5-7.
10 "After January 1, the collector tax collecting
11 official must shall make a personal demand in writing by first
12 class mail upon delinquent taxpayers, or their agents charged
13 with the duty of paying their taxes, whenever they may be
14 found, for the amount of their taxes and fees, and when unable
15 to find them, to make a demand by certified or registered mail
16 directed to his last known place of residence or business,
17 return receipt demanded. The demand fee shall be five dollars
18 ($5) for each property. It shall be the duty of such
19 delinquents forthwith the delinquent taxpayer to pay the taxes
20 and fees assessed and charged against them the taxpayer, but
21 failure to comply with the requirements of this section shall
22 not invalidate the title to any property sold for taxes.
23 "40-5-8.
24 "If the taxes are paid after they become delinquent,
25 the taxpayer shall pay all costs, fees, and charges, and
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1 interest, if any, that may at the time of payment have
2 lawfully accrued.
3 "40-5-9.
4 "Notwithstanding the provisions of Section 40-1-44,
5 all ad valorem taxes becoming delinquent bear interest at the
6 rate of 12 percent per annum, and such interest must. The
7 interest shall be added to and collected as part of the taxes
8 and shall be reported in such the manner as prescribed by the
9 Comptroller may prescribe.
10 "40-5-10.
11 "Upon the payment by any taxpayer of the taxes,
12 fees, and costs, if any, assessed and charged against him the
13 taxpayer, the collector tax collecting official shall give the
14 taxpayer a receipt therefor from the book mentioned in Section
15 40-5-11, showing the name of the taxpayer, the date of the
16 payment, and the total assessed value of real and personal
17 property, separately, and stating the amount of the state,
18 county, and special taxes separately, together with the
19 interest, costs, and fees, and such receipt shall be prima
20 facie evidence that such taxpayer has paid all his state and
21 county taxes for that year on the real and personal property
22 and other subjects of taxation contained in his assessment
23 lists and all fees and costs mentioned in such receipt. When
24 any taxpayer shall pay all the taxes on any parcel of real
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1 estate separately assessed, the description thereof shall be
2 placed on the receipt.
3 "40-5-11.
4 "The collector shall keep a book or books of
5 receipts with duplicate sheets for each tax year, from which
6 all receipts given to taxpayers must be taken; and, on payment
7 by any taxpayer, the collector shall enter on the duplicate
8 from which the receipt is taken the name of such taxpayer, the
9 date of payment and the amount of taxes and the interest and
10 costs as specified in the receipt prescribed in Section
11 40-5-10, and such duplicate and the receipt taken therefrom
12 shall bear the same number and correspond in all respects.
13 Such book or books at the end of the tax year shall be
14 delivered by the collector to the chairman of the county
15 commission, and the production thereof by the collector may be
16 compelled by such commission at any time before such delivery.
17 The tax collecting official shall maintain a historic file of
18 all individual tax payments.
19 "40-5-12.
20 "A purchaser, lien holder lienholder, or mortgagee
21 of real estate or personal property included in an assessment
22 with other real estate or personal property of the person to
23 whom the real estate or personal property was assessed or
24 subject to the lien of taxes upon other real estate or
25 personal property shall not be required to pay the entire
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1 amount of taxes due by the person or corporation to whom such
2 real estate or personal property purchased or on which a lien
3 or mortgage is held is assessed, but may discharge the tax
4 lien against such the real estate or personal property
5 purchased or on which a lien or mortgage is held by paying the
6 actual amount of the taxes due to the tax collector collecting
7 official of the county in which such the taxes are due and
8 payable the actual amount of taxes due on such real estate or
9 personal property purchased or in which a lien or mortgage is
10 held based on the taxable value of such purchased or
11 encumbered property as assessed for taxation by the person or
12 corporation to whom assessed; provided, that such person or
13 corporation to whom such purchased or encumbered property is
14 assessed or for whose taxes such purchased or encumbered
15 property is subject to a tax lien has sufficient other real
16 estate or personal property returned or assessed and subject
17 to levy or sale out of which the remainder of the taxes may be
18 collected by the tax collector and, provided further, that the
19 taxable value of the real estate or personal property sought
20 to be discharged from such tax lien can be ascertained from
21 the assessment.
22 "40-5-13.
23 "Any person listing who lists for assessment more
24 than one piece or parcel of real property which that has been
25 listed and valued separately may pay taxes on any one or more
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1 of said the pieces; provided, that he the person shall first
2 pay taxes on all personal property listed by him the person in
3 said the assessment.
4 "40-5-14.
5 "(a) After January 1 of each year, the tax collector
6 collecting official may must proceed, without delay, to levy
7 upon the personal property of delinquent taxpayers for the
8 payment of their taxes and, after having first given 10 days'
9 notice of the time and place of sale, with a description of
10 the property to be sold, by posting the same at three or more
11 public places in the precinct of the residence of such
12 delinquent, either at the time of assessment or of the levy,
13 or, if he is a nonresident of the county, in the precinct in
14 which the levy is made he must certified mail and by posting
15 on an online website controlled by the tax