The bill HB505 amends the Code of Alabama 1975, specifically Sections 40-2A-7 and 40-2A-8, to extend the timeframe for taxpayers to appeal decisions made by the Alabama Tax Tribunal or circuit court. It also aligns the compensation of judges of the Alabama Tax Tribunal with that of administrative law judges, allowing for potential salaries that exceed the established pay range. The bill removes outdated references to the Internal Revenue Code and certain subsections related to tax assessments, modernizing the legal language and enhancing clarity. Overall, these changes aim to improve taxpayer rights and streamline the appeals process.

Additionally, HB505 introduces several procedural modifications regarding tax assessments and appeals. It allows the Department of Revenue to assess additional taxes within one year of being notified of changes to a taxpayer's federal returns and clarifies the conditions under which the statute of limitations for assessments can be suspended. The bill also specifies that taxpayers appealing final assessments must either pay the tax in full or file a supersedeas bond, and it outlines the procedures for filing petitions for refunds. Furthermore, it establishes the Alabama Tax Tribunal as an independent agency, detailing its operational structure and jurisdiction while ensuring that taxpayers have clear avenues for appeal without prepayment of taxes in most cases.

Statutes affected:
Introduced: 40-2B-2, 40-2A-7, 40-2A-8, 40-2A-7, 40-17A-12, 40-29-90, 40-29-91, 40-29-72, 40-29-73, 40-18-8, 40-18-8, 40-18-8, 40-18-8, 40-18-6, 40-18-8, 40-29-71, 40-29-71, 40-2A-8, 32-8-34, 40-2B-2, 40-2B-2
Enrolled: 40-2B-2, 40-2A-7, 40-2A-8, 40-2A-7, 40-17A-12, 40-29-90, 40-29-91, 40-29-72, 40-29-73, 40-18-8, 40-18-8, 40-18-8, 40-18-8, 40-18-6, 40-18-8, 40-29-71, 40-29-71, 40-2A-8, 32-8-34, 40-2B-2, 40-2B-2