HB470 By Representative Greer RFD Transportation, Utilities and Infrastructure Rd 1 06-APR-17

SYNOPSIS: This bill would require the Department of Revenue to develop and make available a single point of filing and payment program for county and municipal gasoline and motor fuel taxes. The Department of Revenue would be directed to provide up to $1,000,000 for three years to assist local taxing jurisdictions in interfacing with the system. The bill would also establish a Local Motor Fuel Tax Advisory Committee to advise the Department of Revenue on procedures and the operation of the program.

A BILL TO BE ENTITLED AN ACT

Relating to motor fuel taxes; to require the Department of Revenue to develop and make available a system which allows any taxpayer required to file and remit a county or municipal motor fuel tax the capability to file and remit the motor fuel tax returns and payments through an electronic single point of filing program; to provide that there shall be no charge to use the local electronic single point of filing program by a taxpayer or local taxing jurisdiction; to allow the Department of Revenue to adopt rules to implement this act; and to create a Local Motor Fuel Tax Advisory Committee to provide advice to the Commissioner of Revenue and to provide for its members, powers, and duties.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:

Section 1. (a) Not later than September 30, 2018, the Department of Revenue shall develop and make available a system which allows any taxpayer required to file and remit a county or municipal motor fuel tax the capability to file and remit motor fuel tax returns and payments through an electronic single point of filing program. The system shall be available for use by any taxpayer for tax periods after September 30, 2018, provided the taxpayer complies with this act and any rules adopted by the department for the administration of the system. The system shall allow for motor fuel tax return filing and tax remittance only and may not provide for the administration or enforcement of local motor fuel taxes. This applies to all local motor fuel taxes whether called a tax or license fee.

(b) There shall be no charge to local taxing jurisdictions for use of the system by a taxpayer or a local taxing jurisdiction or its designee. Beginning not later than January 1, 2018, the department shall provide financial assistance of up to one million dollars ($1,000,000) for three years to assist local taxing jurisdictions as necessary to ensure that their local system is capable of effectively interfacing with the system.

(c) The system developed and implemented pursuant to subsection (a) shall have the capability to allow a taxpayer to file an electronic tax return for each local taxing jurisdiction in which the taxpayer is required to file and remit a motor fuel tax. The department along with the Local Motor Fuel Tax Advisory Committee shall establish the required information for the electronic tax return, and all information included in the electronic tax return shall be electronically available to each appropriate local taxing jurisdiction without delay. The department shall consult with the Local Motor Fuel Tax Advisory Committee established in Section 3 regarding development and implementation of the system.

(d) Every local taxing jurisdiction levying or administering a motor fuel tax shall submit to the department a list of the motor fuel taxes levied or administered by that local taxing jurisdiction including current rates and shall submit to the department written notification of any new or amended motor fuel tax at least 30 days prior to the effective date of the tax or amendment. Failure to notify the department shall not invalidate the levy of the tax, except that the department may not be required to program new motor fuel taxes or tax rates in the system until the notice is provided as required herein.

Section 2. (a) All local taxing jurisdictions in the state shall authorize use of the system for any taxpayer required to file a local motor fuel tax return or remit the tax payments. Any taxpayer using the system for filing an electronic tax return for a local taxing jurisdiction shall be required to simultaneously remit payment through the system or through another electronic method of payment accepted by the local taxing jurisdiction or its designee for which payment is being made. A local taxing jurisdiction may not accept a tax return from a taxpayer without payment through the system unless the taxpayer has prior approval from the local taxing jurisdiction to utilize a different approved electronic method of payment.

(b) Not later than June 30, 2018, each local taxing jurisdiction shall provide the department with necessary information to allow all motor fuel tax payments to be remitted directly to the bank account or other account designated by the local taxing jurisdiction. Each non-state administered local taxing jurisdiction shall set up their accounts to allow dishonored payments to be reversed. All tax payments made through the system for non-state administered local taxing jurisdictions shall be remitted directly from the taxpayer to the designated bank account or other account of the local taxing jurisdiction with the system serving as a conduit only.

(c) No taxpayer shall be required to use the system for tax return filing and remittance of local motor fuel taxes; provided, however, any taxpayer using the system shall comply with this act and any rules adopted by the department for the administration of this act. Additionally, any taxpayer using the system shall comply with any rule of the local taxing jurisdiction regarding the administration of the local motor fuel tax.

(d) All penalties and interest shall be assessed according to state law and the rules of the department, except that a local taxing jurisdiction may elect to apply the interest at the rate of one percent per month if it notifies the department of the election in a manner prescribed by the department. Additionally, the state discount rate shall be applied except that a local taxing jurisdiction discount rate shall be applied if the local taxing jurisdiction notifies the department of that election in a manner prescribed by the department. A taxpayer who desires a waiver of any penalty assessed in relation to a return filed for a local taxing jurisdiction shall apply directly to that local taxing jurisdiction for the waiver.

Section 3. (a)(1) To ensure that local taxing jurisdictions have meaningful input into the development and operation of the system, a Local Motor Fuel Tax Advisory Committee is established to review the design and operation of the system and to make recommendations regarding system requirements and functionality to the Commissioner of Revenue.

(2) The committee shall consist of the following persons:

a. Three representatives of county government, appointed by the Association of County Commissions of Alabama.

b. Three representatives of municipal government, appointed by the Alabama League of Municipalities.

c. Two representatives of the retail community, appointed by the Petroleum and Convenience Marketers of Alabama.

d. One representative of a county or municipality which levies a motor fuel tax appointed by the Speaker of the House of Representatives who shall be a nonvoting member.

e. One representative of the business community appointed by the President Pro Tempore of the Senate who shall be a nonvoting member.

(3) The committee members shall receive no compensation or reimbursement of expenses from the state for serving on the committee.

(b) The committee shall meet with the Commissioner of Revenue and with other employees of the department as the commissioner deems appropriate. The initial meeting shall be at a time and place to be determined by the commissioner and shall be held not later than September 30, 2017. At the initial meeting, the committee shall organize itself and shall determine the timing and frequency of subsequent meetings.

(c) The role of the committee shall be limited to providing input and recommendations on the development and functionality of the system related to the filing of motor fuel tax returns and remittance of payments using the system. The committee shall not review the department's administration of state taxes, state-administered local taxes, or any other department matter beyond the system.

(d) If the commissioner fails to act on recommendations made by the committee regarding the system, the committee, by majority vote, may appeal to the Legislative Council for a determination on whether the committee's recommendations shall be implemented. The determination of the Legislative Council shall be final.

Section 4. Nothing in this act shall be construed to authorize the Department of Revenue to impose fees on the local taxing jurisdictions or their designees for the maintenance or operation of the system.

Section 5. All laws or parts of laws which conflict with this act are repealed.

Section 6. This act shall become effective on the first day of the second month following its passage and approval by the Governor, or its otherwise becoming law, for returns and payments for tax periods beginning after September 30, 2018.

Counties

Municipalities

Motor Fuel

Gasoline

Revenue Department

Taxation