The Business License Tax Reporting and Appeals Act requires Alabama counties and municipalities that impose business privilege or license taxes to submit annual reports to the Department of Revenue by March 30, detailing tax classifications, schedules, and any changes. Non-compliance will result in the escrow of subsequent tax collections until reporting obligations are met. The act also allows taxpayers to appeal local tax determinations to the Alabama Tax Tribunal, which is established as an independent body for tax dispute resolution. Additionally, the bill mandates that private entities auditing these taxes inform businesses of their authority to collect taxes and face legal action for unlawful collection attempts.

The bill SB174 further amends the qualifications and procedures for Alabama Tax Tribunal judges, allowing the Governor to appoint judges pro tempore with expertise in tax law. It clarifies the Tribunal's jurisdiction, allowing self-administered counties and municipalities to opt out of its jurisdiction over specific tax appeals, with the ability to revoke this decision. The appeals process is streamlined, ensuring taxpayers can contest decisions without upfront payments in most cases, and establishes clear procedures for filing appeals. The Tribunal's operations are enhanced by provisions for informal discovery, open hearings, and the authority to enforce compliance with its orders. The act is set to take effect on October 1, 2025.

Statutes affected:
Introduced: 40-2B-2
Engrossed: 40-2B-2
Enrolled: 40-2B-2