The Business License Tax Reporting and Appeals Act, known as SB174 Engrossed, establishes new reporting requirements for counties and municipalities in Alabama that impose business privilege or license taxes. These entities must submit an annual report to the Department of Revenue by March 30, detailing tax classifications, schedules, and any changes made during the year. Failure to comply will result in the escrow of subsequent business taxes until compliance is achieved. The bill also allows taxpayers to appeal tax determinations to the Alabama Tax Tribunal, which is clarified as the sole authority for hearing tax-related appeals, particularly for business license or privilege taxes levied by counties. Notably, self-administered counties or municipalities can elect out of the Tribunal's jurisdiction for certain tax appeals, with the new language inserted to reflect these changes.

Additionally, SB174 Engrossed amends the operational structure of the Alabama Tax Tribunal, classifying its judges as state employees and granting them similar benefits and protections as other state employees. The bill outlines the appointment process for judges and establishes the Tribunal's jurisdiction, ensuring it operates independently from the Department of Revenue. It introduces provisions for the appeals process, including the ability for taxpayers to appeal without prepayment of taxes and the elimination of filing fees. The bill also enhances discovery processes, mandates written decisions within six months, and allows for appeals to be filed in the Circuit Court of Montgomery County for taxpayers without a principal place of business in Alabama. Overall, SB174 aims to streamline tax reporting and appeals, improve operational efficiency, and ensure fair processes for all parties involved.

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