Current through Register Vol. 43, No. 02, November 27, 2024
(1) SCOPE. The
provisions contained herein shall govern appeals to the Alabama Tax Tribunal
(hereinafter, the "Tax Tribunal") or to a Circuit Court. However, with the
exception of the property of public utilities under Chapter 21 of Title 40,
nothing herein shall be construed to apply to the appeal of ad valorem taxes on
real or personal property which is administered by the various counties of the
State of Alabama.
(2) DEFINITIONS.
(a) Final Assessment. Shall have the meaning
ascribed to it pursuant to Section
40-2A-3 of the Code of
Alabama.
(b) Ad Valorem Taxes. The
taxes commonly known as "property taxes" as provided in Title 40 of the
Code of Ala. 1975.
(3) PURPOSE. The purpose of this rule is to
provide the taxpayer with the information necessary to make appeals.
(4) APPEAL OPTIONS. Within a 30 day period
from the date mailed or delivered by personal service, whichever occurs
earlier, a taxpayer may appeal (even if the taxpayer has paid the tax at issue
prior to making the appeal) a Final Assessment to the:
(b) to a circuit court, as provided
below.
(5) APPEALS TO
ALABAMA TAX TRIBUNAL. If the taxpayer chooses to appeal to the Tax Tribunal,
the taxpayer must notify the Tax Tribunal Judge in writing of the intent to
appeal. The written appeal notice must be filed with the Tax Tribunal within
the following time limits:
(1) within 30 days
from the date on which a Final Assessment is mailed as provided in Section
40-2A-7(b)(4) d
or delivered by personal service, whichever occurs earlier;
(2) within two years from the date on which a
petition for refund is denied or deemed denied;
(3) within 30 days after the date on which
the Department mails notice of any denial or revocation of a license, permit,
or certificate of title from which the taxpayer is entitled to appeal pursuant
to Section
40-2A-8; provided, however, the
burden is on the taxpayer to show that the appeal was filed within 30 days of
actual notice;
(4) within 30 days
after the date on which the Department mails notice of a proposed adjustment to
a taxpayer's net operating loss deduction or carryover concerning the taxes
imposed by Chapters 16 or 18 of Title 40; or
(5) within 30 days after 5 years from the
date a preliminary assessment was entered by the Department that has not been
withdrawn or made final by the Department. The notice of appeal must contain
the taxpayer's name, address, telephone number, type of tax and tax period(s)
being appealed, and a brief statement explaining the objection(s) to the Final
Assessment. A copy of the Final Assessment should be attached to the notice of
appeal. The appeal should be sent to the address specified in the rules
promulgated by the Tax Tribunal.
(6) APPEALS DIRECTLY TO CIRCUIT COURT. If the
taxpayer chooses to appeal directly to the circuit court, as provided by
applicable statutes, in lieu of an appeal to the Tax Tribunal, the taxpayer may
appeal to either the Montgomery County Circuit Court or, if the taxpayer
resides or has a principal place of business within Alabama, the circuit court
of the Alabama county in which the taxpayer resides or has a principal place of
business. The taxpayer must file a written notice of appeal within thirty (30)
days of the date the final assessment was mailed or delivered by personal
service, whichever occurs earlier, with both the Secretary of the Department
and the clerk of the circuit court in the county where the appeal is filed. The
Department's copy should be sent to the following address:
Secretary of the Department
Alabama Department of Revenue
P. O. Box 327001
Montgomery, AL 36132-7001.
And, the taxpayer must do one of the following:
(a) Pay the total tax, interest, and any
penalty shown on the final assessment in full; or
(b) Execute a supersedeas bond with the court
for 125 percent of the amount of the total tax, interest, and any penalty shown
on the final assessment.
(c) File
an irrevocable letter of credit with the circuit court in an amount equal to
125 percent of the amount of the tax, interest, and any penalty shown on the
final assessment. The irrevocable letter of credit shall be issued by a
financial institution designated as a qualified public depository by the Board
of Directors of the SAFE program pursuant to the provisions of Chapter 14A,
Title 41,
Code of Ala, 1975. The State of Alabama
shall be named the beneficiary of the irrevocable letter of credit. The
irrevocable letter of credit shall be conditioned to pay the assessment plus
applicable interest and any court costs relating to the appeal. The taxpayer
may not issue an irrevocable letter of credit for a final assessment entered
against the same taxpayer;
(d) File
a pledge or collateral assignment of securities that constitute eligible
collateral under Chapter 14A, Title 41,
Code of Ala.
1975, in an amount equal to 200 percent of the amount of the tax,
interest, and penalty shown on the final assessment. The pledge or collateral
assignment shall be conditioned to pay the assessment plus applicable interest
and any court costs relating to the appeal;
(e) Show to the satisfaction of the clerk of
the circuit court to which the appeal is taken that the taxpayer has a net
worth, on the basis of fair market value, of two hundred fifty-thousand dollars
($250,000) or less, including his or her homestead.
(7) APPEALS TO CIRCUIT COURT FROM A FINAL
ORDER OF THE TAX TRIBUNAL JUDGE. Either the taxpayer or the department may
appeal to circuit court from a final order issued by the Tax Tribunal Judge by
filing a notice of appeal with the Tax Tribunal and with the circuit court
within 30 days from the date of entry of the final order. Any appeal by the
department shall be filed with the circuit court of the county in which the
taxpayer resides or has a principal place of business in Alabama. If the
taxpayer neither resides in Alabama nor has a principal place of business in
Alabama, the appeal may be made to the Circuit Court of Montgomery County,
Alabama. Any appeal by the taxpayer may be taken to the Circuit Court of
Montgomery County, Alabama, or to the circuit court of the county in which the
taxpayer resides or has a principal place of business in Alabama and the
taxpayer must do one of the following:
(a)
Pay the amount stated in the final order of the, Tax Tribunal Judge plus
applicable interest.
(b) Execute a
supersedeas bond, which shall be executed by a surety company licensed to do
business in Alabama, for 125 percent of the amount stated as due in the final
order of the, Tax Tribunal Judge, including tax, interest, and any applicable
penalty, payable to the state and conditioned to pay the amount stated in the
final order plus applicable interest due the state and any court cost relating
to the appeal.
(c) File an
irrevocable letter of credit with the circuit court in an amount equal to 125
percent of the amount stated as due in the final order of the, Tax Tribunal
Judge. The irrevocable letter of credit shall be issued by a financial
institution designated as a qualified public depository by the Board of
Directors of the SAFE program pursuant to the provisions of Chapter 14A, Title
41. The State of Alabama shall be named the beneficiary of the irrevocable
letter of credit. The irrevocable letter of credit shall be conditioned to pay
the assessment plus applicable interest and any court costs relating to the
appeal. The taxpayer may not issue an irrevocable letter of credit as to an
appeal by the same taxpayer.
(d)
File a pledge or collateral assignment of securities that constitute eligible
collateral under Chapter 14A, Title 41, in an amount equal to 200 percent of
the amount stated as due in the final order of the, Tax Tribunal Judge. The
pledge or collateral assignment shall be conditioned to pay the assessment plus
applicable interest and any court costs relating to the appeal.
(e) Show to the satisfaction of the clerk of
the circuit court to which the appeal is taken that the taxpayer has a net
worth (based on fair market value) of two hundred fifty thousand dollars
($250,000) or less, including his or her homestead.