The Business License Tax Reporting and Appeals Act establishes new requirements for counties and municipalities in Alabama that impose business privilege or license taxes. These entities must submit annual reports to the Department of Revenue by March 30, detailing tax classifications, schedules, and any changes made during the reporting year. Non-compliance will result in the escrow of future tax collections. The act also allows taxpayers to appeal local tax determinations to the Alabama Tax Tribunal, which is designed to operate independently from the Department of Revenue. Additionally, the bill introduces regulations for private entities auditing these taxes, requiring them to inform businesses of their authority and notify the Department of Revenue of their engagement.

SB174 further amends the qualifications and operational procedures for judges of the Alabama Tax Tribunal, allowing the Governor to appoint judges pro tempore and establishing specific qualifications for judges. The bill clarifies the Tribunal's exclusive jurisdiction over tax law appeals, including business license taxes, and outlines the process for self-administered counties to opt-out of the Tribunal's jurisdiction. It streamlines the appeals process, ensuring taxpayers can contest tax matters without prior payment, and emphasizes informal discovery efforts. The Tribunal is granted authority over its procedural issues, and its decisions will have the same effect as circuit court judgments. 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