HB375 By Representatives Lee, Henry, Ainsworth, Nordgren, Harper, Weaver, Ledbetter, Whorton (R), Pettus, Wood, Greer, Moore (B), Shiver, Polizos, Sells, Beckman, Fincher, Wingo, Holmes (M) and Williams (JD) RFD State Government Rd 1 08-MAR-16

SYNOPSIS: Existing law provides that a governing body of a municipality may adopt rules and regulations to ascertain, assess, collect, and administer sales and use taxes.

This bill would prohibit a governing body of a municipality from entering into a contract with a private auditing or collecting firm.

A BILL TO BE ENTITLED AN ACT

To amend Section 11-51-204 of the Code of Alabama 1975, relating to the adoption of rules and regulations relating to sales and use taxes by the governing body of a municipality; to prohibit a governing body of a municipality from entering into a contract with a private auditing or collecting firm.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:Section 1. Section 11-51-204 of the Code of Alabama 1975, is amended to read as follows:

§11-51-204.

"(a) The governing body of a municipality making or enforcing a levy or assessment of taxes under the provisions of this article shall from time to time adopt by ordinance such rules and regulations for making returns and for ascertainment, assessment, collection, and administration of any taxes levied under the provisions of this article as it may deem necessary to enforce its provisions and, upon request, shall furnish any taxpayer with a copy of those rules and regulations.

"(b) Except as provided in this article, any interpretations, rules, and regulations adopted or utilized by the governing body shall not be inconsistent with any rules and regulations which may be issued or promulgated by the Department of Revenue from time to time pursuant to the Alabama Administrative Procedure Act, for the corresponding state tax.

"(c) The governing body of a municipality may not enter into a contract with a private auditing or collecting firm, as defined by Section 40-2A-3."

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.

Municipalities

Taxation

Private Auditing

Governing Body, City

City Council

Code Amended