SB305

SYNOPSIS: Existing law does not provide penalties against a taxpayer who presents a money order or electronic funds which are not honored for payment as payment for his or her tax liability.

This bill, with certain exceptions, would provide for the imposition of penalties against a taxpayer who presents as payment for his or her tax liability a money order or electronic funds which are not honored for payment.

A BILL TO BE ENTITLED AN ACT

To amend Section 40-29-70, Code of Alabama 1975, to provide for the imposition of penalties against a taxpayer who presents as payment for his or her tax liability a money order or electronic funds which are dishonored for payment.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:Section 1. Section 40-29-70, Code of Alabama 1975, is amended to read as follows:

§40-29-70.

"If any check, or money order, or electronic funds in payment of any amount receivable under this title for payment of taxes under any provision of law is not duly paid, in addition to any other penalties provided by law, there shall be paid as a penalty by the person who tendered such check, money order, or electronic funds, upon notice and demand by the commissioner, or his or her delegate, or other taxing authority, in the same manner as tax, an amount equal to 10 percent of the amount of such check, money order, or electronic funds, except that if the amount of such check, money order, or electronic funds is less than $500 five hundred dollars ($500), the penalty under this section shall be $10 ten dollars ($10) or the amount of such check, money order, or electronic funds, whichever is the lesser. This section shall not apply if the person tendered such check, money order, or electronic funds in good faith and with reasonable cause to believe that it would be duly paid, or and settlement is made by the taxpayer within 10 days after notification of receipt of a bad check, money order, or nonpayable electronic funds by the department."

Section 2. This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law.

Taxation

Tax Liability

Code Amended