Current through Register Vol. 42, No. 11, August 30, 2024
(1) The
department shall publish and maintain a current listing of tax levies for
municipal and county sales, use, rental, and lodgings taxes pursuant to §
11-51-210,
Code of Ala. 1975.
(2) Local Government Notification
Requirements.
(a) Every municipality or county
("locality") levying a new sales, use, rental, or lodgings tax, or amending an
existing levy of these taxes must submit notification of the new levy or
amendment to the department at least sixty (60) days before the requested
effective date of the tax levy or amendment. The notification must include the
following to be considered proper notification to the department:
1. A written notification on the locality's
letterhead or other department accepted format, addressed to the department and
signed by a local government representative.
2. A certified copy of the levying or
amending act, ordinance, or resolution.
3. The name of and preferred contact
information for the locality's designated representative to whom notifications
by the department as required in paragraph (3) will be provided.
(b) Proper notification, as
provided in paragraph (a), must be submitted to the department's Local Tax Unit
by either of the following methods:
1. By
email to localtaxunit@revenue.alabama.gov.
2. By certified mail to the Alabama
Department of Revenue, Local Tax Unit, Post Office Box 327710, Montgomery, AL,
36132-7710.
(c) The date
of receipt of the notice by the department (the "received date") shall be
determined as follows:
1. For electronic
submissions, the date stamp of the email sent to the department email address
provided in this paragraph.
2. For
certified mail submissions, the postmarked date on the outer envelope addressed
as provided in this paragraph.
(3) Department Notification Requirements.
(a) Upon proper completion of the
requirements of paragraph (2), the department will provide a tax levy return
confirmation to the locality no later than the first day of the second month
after the received date. The tax levy return confirmation will include the new
tax rates to be effective as understood by the department based on the
notification provided in accordance with paragraph (2), as well as the
statutory effective date of the new tax rate(s) and the date the notification
was received by the department.
(b)
Any corrections to the rates listed on the tax levy return confirmation must be
submitted to the department, as provided in paragraph (2)(a), by the locality
within ten (10) calendar days of the date of receipt of tax levy return
confirmation by the locality's designated representative. Unless notification
of corrections is provided in accordance with this paragraph, the rates and
corresponding effective dates listed on the tax levy return confirmation and
thereafter published by the department will be considered correct.
(4) Statutory Effective Date of
Levy. The statutory effective date of a new tax rate levy or amendment of an
existing tax levy for which notice has been provided in accordance with
paragraph (2) will be the first day of the third month following the date of
receipt of proper notification as described in paragraph (2), unless the tax
levy or amendment has requested a specified effective date that is after the
first day of the third month. Provided, however, if the effective date
requested by the municipality or county is not the first day of the month, the
statutory effective date will be the first day of the month following the
effective date requested in accordance with the notification requirements in
paragraph (2).
(a) Example 1. A city enacts a
new rental tax levy to be effective June 1st. The department receives proper
notification of the new levy on April 1st. The statutory effective date of the
new levy is July 1st.
(b) Example
2. A town amends their existing sales and use tax rates effective July 1st. The
department receives proper notification of the amendment on April 15th. The
statutory effective date of the amended levy is July 1st.
(c) Example 3. A county enacts a new sales
and use tax levy to be effective June 1st. The department receives proper
notification of the new levy on January 1st. The statutory effective date of
the new levy is June 1st.
(d)
Example 4. A city enacts a new lodgings tax levy to be effective October 15th.
The department receives proper notification of the new levy on July 5th. The
statutory effective date of the new levy is November 1st.
(5) Hold Harmless and Rate Responsibility.
(a) If the rate published by the department
and relied upon by the taxpayer is less than the actual rate provided on the
locality's tax levy return confirmation, the department shall be responsible
for reimbursement of the difference to the affected locality. This liability
will not exceed a period of one year from the date the incorrect rate was
published by the department.
(b) If
a county or municipality fails to properly notify the department of a new levy
or amendment to an existing levy as provided in this rule, the department is
relieved from the liability of any difference in the tax levy to the local
jurisdiction.
(c) If a taxpayer
charges an insufficient tax rate due to reliance on the department's published
rates, no additional liability of the difference in the actual tax levy is due
to Alabama or its local jurisdictions.
Author: Laura Reese
Statutory Authority:
Code of Ala.
1975, §§
11-51-210,
40-2A-7(a)(5).