3rd quarter fy 2010 · 2017. 5. 29. · third quarter fy 2010 revenue review april, may, june 2010...

Joe Walls Appointed Taxpayer Advocate; Voncile CatledgeNamed Collection Services Division Director

Alabama Assistant Revenue Commissioner Cynthia Under-wood recently announced two key personnel changeswithin the Alabama Department of Revenue (ADOR).

Joe Walls wasnamed to the post ofTaxpayer Advocate, ef-fective June 1, 2010.Prior to his appoint-ment as Taxpayer Ad-vocate, Mr. Walls, acareer Revenue em-ployee, served as man-ager of thedepartment’s Sales,Use, and Business TaxAdministration Sec-tion. He brings to theTaxpayer Advocatepost over 34 years of

experience in the tax administration field. Mr. Walls began his ca-reer with the ADOR in 1976 as an account clerk, and since thattime, has held various supervisory and management positionsthroughout his career.

As Taxpayer Advocate, Mr. Walls will serve as an independentchannel of assistance for those taxpayers who have followed stan-dard procedures, but find their tax matters still unsatisfactorily re-solved. The post of Taxpayer Advocate was established by law in2000.

A Quarterly Publication of the Alabama Department of Revenue

3rd QuarterFY 2010

(April, May, June 2010)

For moreinformationclick here

Sales Tax

Holiday

2010

New Assignments in State Revenue Department

Gulf Oil Spill GuidanceQuestions and Answers

Oil Spill Information

Mr. Walls replacesVoncile Catledge,who was named direc-tor of the depart-ment’s CollectionServices Division, ef-fective June 1.

Ms. Catledge, a ca-reer employee, bringsto her new assignmentas director of the Col-lection Services Divi-sion over 31 years ofexperience in theaudit and manage-ment areas of income

and business taxes. Ms. Catledge began her career with the ADORin 1979 as a tax auditor, and has held various audit supervisory andmanagement positions throughout her tenure with the depart-ment. In March 2009, she was named to the post of Taxpayer Advocate.

As Collection Services Division Director, Ms. Catledge overseesthe collection of final tax assessments for all ADOR tax divisions, ex-cluding the Property Tax Division.

Ms. Catledge replaced Director Dwight Pridgen, who retired inMay.

“Both Joe and Voncile bring a wealth of knowledge from allfacets of the department,” said Assistant Revenue CommissionerCynthia Underwood. “Their commitment to jobs well done andtheir leadership styles set high standards within the department.We welcome them to their new assignments.”

Joe Walls

Voncile Catledge

www.revenue.alabama.gov/oilspill.html



www.revenue.alabama.gov/salestax/SalesTaxHol.htm

Third Quarter FY 2010 April, May, June 2010Revenue REVIEW

Motor Vehicle’s Jay Starling andRenee Kyser were honored at thisyear’s IRP Annual Meeting in St.

Louis, Missouri. Both received honoraryawards at two different luncheons held torecognize award recipients and those indi-viduals for whom the awards were named.

Jay, Motor Vehicle Division’s RegistrationSection Supervisor, received the Richard L.

Reeves IRP Leadership Award. Division Di-rector Brenda Coone describes the historyand reasons for the award:

“The Richard L. Reeves IRP LeadershipAward is presented to an individual who hasdistinguished herself or himself by out-standing contributions and involvementwithin the IRP Community. The award rec-ognizes effective leadership and outstand-ing accomplishments and contributionswithin the nominee’s jurisdiction or withinthe IRP community.

“For the recipient’s distinguished serv-ice, it is given to an individual who has

demonstrated those qualities that most ex-emplify the standards of leadership estab-lished by Rick Reeves during his 25 years ofcommitment to the transportation industry.It honors the memory of a man who dedi-cated his career to making sure the trans-portation industry had a fair and equitableapproach to vehicle taxation and registra-tion. Although Rick was a member of the

motor carrier industry, he continuallyworked to achieve equality between the ju-risdictions and industry.

“The ideal candidate for the Richard L.Reeves IRP Leadership Award has con-tributed to the IRP organization in one ormore of the followings ways:

Has contributed as a presenter at an IRPmeeting such as the Annual Meeting, Super-visors/Managers Workshop, Joint AuditWorkshop

Has served as a jurisdictional member orindustry advisor on the IRP Board of Direc-tors, Standing Committees, Special Issue

Sub-committees chartered by the IRP Boardof Directors, or the IRP IAC Steering Com-mittee

Has demonstrated ongoing commitmentto fairness in the administration of the IRP

Has demonstrated willingness to act as amentor for new membership

Has actively participated in support ofthe concepts embodied by IRP

Sheila Rowen of Tennessee, in present-ing the award to Jay, made the following re-marks:

“Jay fulfills all four of the criteria forthe Reeves Leadership Award. As an ad-ministrator with the Alabama Departmentof Revenue, he is a member of the IRP com-munity. Through his leadership, the gen-erosity with which he donates his time andenergy, and his strength of character, hecontinues to make outstanding contribu-tions to the IRP community. Jay has been amember of the IRP Audit Committee (1996-2000) and served while there as a memberof the Audit Workshop Planning Commit-tee. He served as both vice-chair andchair of the Audit Committee (2000-2002).He has served as well on IRP Peer Reviewteams and as a member of the Dispute Res-olution Committee of the Plan. He cur-rently serves as the vice chair of the IRPBoard of Directors and as the chair of boththe Plan’s Compliance Audit WorkingGroup and the task force considering thefeasibility of the Full Reciprocity Plan. Heis a frequent – and able – presenter at IRPconferences.

“That he has filled all of these roleswould alone speak highly of Jay’s dedica-tion to the success of the Plan and of hiscontributions to it. It is in the way he fillsthem, however, that makes Jay especiallydeserving of the award. His intelligence,fairness, patience, and energy are notablein whatever he puts his hand to, as well ashis open friendliness and his ability to ac-commodate points of view other than hisown. Finally, Jay’s contributions are no-table in his home jurisdiction as well. Hewas instrumental in the development ofAlabama’s motor carrier system, serves on

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IRP Annual Meeting Recognizes ADOR Reps

(Left to right) Motor Vehicle Division representatives Jay Starling, Registration Section Supervisor; Tyies Fleet-ing, Motor Carrier Services Unit Supervisor; and Renee Kyser, Revenue Examiner, Motor Vehicle Audit Unit, atthe IRP Volunteer of the Year Award Reception.


New License RequirementEffective July 1 for Dealersof Precious Metals/Stones

The Alabama Department of Revenue(ADOR) reminds dealers of preciousmetals and stones of a new business

privilege licensing requirement that becameeffective July 1.

The new law, Act 2010-732, establishesan annual license fee of $150 ($100 state;$50 county) and sets specific recordkeepingand reporting requirements for Alabamadealers of precious metals and stones, be-ginning July 1, 2010. Precious metals andstones include items made in whole or inpart of gold, silver, or platinum, and pre-cious or semiprecious stones or pearls.

Manufacturers, retail merchants, whole-salers, and pawnbrokers licensed by theState Banking Department are exempt fromthis new category of the business privilegelicense.

The ADOR advises that in addition tothe licensing provisions, the new law alsorequires dealers of precious metals andstones to maintain certain recordkeepingprocedures and to report certain informa-tion to local law enforcement on a regularbasis. Dealers are required to forward acopy of their license to local law enforce-ment within five days after purchasing thelicense from the county licensing issuing of-

ficial of the county where the dealer’s per-manent place of business is located. (A per-manent place of business is defined as fixedpremises either owned by the dealer orleased by the dealer for at least one year.)

Records concerning the sale of the pre-cious metals/stones must be maintained forsix months and must be available for in-spection by local law enforcement. Dealers,at least once a week in which a purchase ismade, must forward a list of the items pur-chased to the local law enforcement whichincludes the following information: • Brand name and serial number of the

item(s) purchased. • Accurate description of the item. • Date and time item was received. • Amount paid for each item. • Name, address, date of birth, and

signature of the person from whom thedealer purchased the item.

• Description of the person, includingheight, weight, race, complexion andhair color.

• Valid identification card informationprovided by the seller (e.g., driverlicense, non-driver identification card,Armed Services or other valid photoidentification) to include a traceableserial number. The new law also requires dealers to

hold the items purchased in the sameshape and form as received for 15 businessdays following notification of the purchasesto law enforcement.

To obtain more information about thenew license, visit ADOR’s Web site atwww.revenue.alabama.gov or call the Ala-bama Department of Revenue Sales, Useand Business Tax Division, Severance TaxSection at 334.353.7827.

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the state’s PRISM and CVISN teams, assistedin the development of an automated de-posit system for local governments, andhelped to implement Alabama’s on-line fil-ing systems for both IRP and the Interna-tional Fuel Tax Agreement.”

In 2009, Renee Kyser received the IRPVolunteer of the Year Award. Shortly after-ward, the award’s name was changed to theMick Ramirez IRP Volunteer Award. Reneeattended this year’s conference to acceptthe 2009 award bearing the new name.

According to Jay Starling, “Mick Ramirezwas an active volunteer in the IRP commu-nity and lent his expertise to many areas re-lated to IRP, including serving as a memberof the Peer Review Committee and the Dis-pute Resolution Committee. He passedaway in February 2009, after a long illness.”

Jay Starling, shown here with Cheryl Jackson Reeves, widow of Rick Reeves, displays his award.


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and interest which can result from improper reporting. WendyPlash, representing the Property Tax Division, explained propertytax assessment and taxation, along with the difference between realand personal property. James Kitt, of the Sales and Use Tax Divi-sion, assisted with handouts and the question-and-answer session.

Representatives from the Internal Revenue Service, the SmallBusiness Administration, United Way and the State House of Repre-sentatives were also on hand for presentations.

ADOR representatives from the Jefferson/Shelby TaxpayerService Center attended the Miles College Small BusinessSummit held May 25 at the Fairfield Civic Center.

Amelia McEachin, representing the Individual and Corporate TaxDivision, explained the filing of small business tax forms and theimportance of good recordkeeping and revenue and expense re-porting. Jessica Pope, representing the Sales and Use Tax Division,explained the reporting of sales and use tax, along with penalties

Attendees and presentersincluded (left to right):Rep. Roderick Scott (D),55th District, professor atMiles College; Dr. DaveThompson, assistant pro-fessor, Division of Businessand Accounting, Miles Col-lege; DeForrest Brown,United Way; Jessica Pope,Wendy Plash, James Kitt,Amelia McEachin, ADOR.

Fairfield Mayor KennethCoachman (at podium) of-fers remarks as (left toright) Amelia McEachin,ADOR, and RoderickPerkins, Small BusinessAdministration, take notesand listen.

ADOR Reps Attend Miles College Business Summit


The Internal Revenue Service revisedForm SS-4, Application for EmployerIdentification Number (EIN), to

clearly identify the applicant’s true owner.Effective January 2010, all mail, fax, phone,and electronic EIN applications must dis-close the name and taxpayer identificationnumber of the true “responsible party” forthe entity requesting an EIN.Revised Form SS-4, Application for

Employer Identification Number,requires identification of responsibleparty

Updating Incorrect Business EntityInformation

Change in Application for EmployerIdentification Number, target id: 219210,target content type: Article

Use of Nominees in the EIN ApplicationProcess The following is an overview of the infor-

mation included in the above links:• Form SS-4, Application for Employer

Identification Number, has been revisedand applicants must disclose the name andtaxpayer identification number of the true“responsible party” for the entity requestingan EIN.

• For an EIN applicant that is publicallytraded or is registered with the Securitiesand Exchange Commission, the “responsi-ble party” is the principal officer, generalpartner, grantor, owner of a disregarded en-tity, owner, or trustor, depending on thebusiness entity of the applicant.

• For all other entities, the “responsibleparty” is the person who can control, man-age, or direct the entity and the dispositionof the entity’s funds and assets.

• A nominee is an entity with delegatedauthority to act in name only and can neverbe the “responsible party” for the Form SS-4 application.

• The SS-4 must be signed by an indi-vidual with the authority to legally bind theentity; therefore, it cannot be signed by anominee.

• Entities that used nominees on theirapplications in the past should consider up-

Effective May 19, 2010:Amended:810-3-15-.20 Federal Income Tax Deduction

– Individuals810-14-1-.30 Penalty for Failure to Timely

Pay TaxEffective May 26, 2010:Amended:810-5-1.240 Permanent Trailer License Plates810-5-75-.48 Title Procedures – Defining

“Junk” Vehicles and Requiring Notice 810-5-75-.49 Certificate of Title Required –

New Title Issued When Information on aCertificate of Title Is Changed or WhenCorrection Is Required

810-5-75-.50 Certificate of Title Required –Continuance of Recorded Legends

810-5-75-.51 Returned Title Request Form(Form MVT 5-27)

810-5-75-.52 Designated Agent—Dealer andFinancial Institution Appointments

810-5-75-.53 Application for Certificate ofTitle Leased Vehicles (IncludingLease/Purchase Agreements)

810-5-75-.54 Application for Certificate ofTitle – Corrections on an Application forCertificate of Title by the Department

810-5-75-.55 Application for Certificate ofTitle – Certification of PhysicalInspection of a Motor Vehicle onApplication for Certificate of Title

810-5-75-.56 Issuance and Records –Abbreviations Used in Data Entry

810-5-75-.57 Application for SalvageCertificate of Title (Form MVT 41-1)

dating the information shown on the origi-nal application.

• There is no form available for updat-ing information on previous applications;instead the entity should send a letter toIRS. Information on how to do this is in-cluded in the “Updating Incorrect BusinessEntity Information” link.

• Third party designees filing online ap-plications must retain a complete copy of

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IRS NEWSImportant Reminders about Form SS-4

810-5-75-.58 Security Interest – MotorHomes

810-5-75-.59 Powers of the Department –Application for Alabama VehicleIdentification Number and SupportingDocuments

810-5-75-.60 Powers of the Department –Revocation and Denial of Authority toAct as Designated Agent of theDepartment

810-5-75-.61 Schedule of Fees andCommissions – Remittance of Fees byPersonal Checks or Company Checks ofDesignated Agents

810-5-75-.62 Salvage – Determining FairRetail Values for Total Loss Vehicles

810-5-75-.64 Report of Unclaimed Vehicle –Where Vehicle Unclaimed for Longerthan Thirty (30) Days (Form MVT 38-1)

Effective May 27, 2010:Adopted:810-5-75-.63 Powers of Attorney –

Guidelines for UseRepealed:810-5-50-.13.01 Powers of Attorney –

Guidelines for Use810-5-76-.02 Odometer Disclosure for

Certificate of Title – Power of AttorneyEffective June 4, 2010:Amended:810-5-1-.451 Prerequisites to Issuance of

Apportioned License Plates or Cab CardsRepealed:810-5-1-.207 Disabled Veterans – Uses and

Transferability of Distinctive Tags

the paper Form SS-4, signed by the respon-sible party, and a signed authorization state-ment, for each EIN application filed withthe IRS.

• Using nominees in the EIN applicationprocess prevents the IRS from gathering ap-propriate information on entity ownershipand may also facilitate tax non-complianceby entities and their owners. Clearly identi-fying an entity’s true owner makes it diffi-cult for taxpayers to conceal their incomeand assets.

For more information, visit the IRS website at www.irs.gov.

Administrative Rules

www.irs.gov

http://www.irs.gov/businesses/small/article/0,,id=214886,00.html













General LegislationAct 2010-184 (SB 283) Enhanced Use

Lease Area Act of 2010This bill creates the Enhanced Use Lease

Area Act of 2010; adds Chapter 9E to Title40; makes legislative findings and definesterms; provides for the utilization of under-utilized real and personal property locatedin enhanced use lease areas and funds thecosts through tax increment financing; enti-tles qualified property within a tax incre-ment district in which not less than 50percent, by area, of the real property withinthe tax increment district is an enhanceduse lease area, to an abatement of stateproperty taxes. In lieu of paying propertytaxes, the taxable owner of qualified prop-

erty must make a payment to the public en-tity which created the tax increment districtin which the property is located. This billalso ensures that withholding amounts forwages paid to construction workers are re-ported and paid to the state. Effective date:March 9, 2010

Provisions of this act shall apply to anytax increment district created before March9, 2010, provided that (1) the tax incrementdistrict is created on or after Jan. 1, 2010,and (2) not less than 50 percent, by area, ofthe real property within the increment dis-trict is an enhanced use lease area.

Act 2010-211 (HB 115) ProvidesEffective Date that Act 2009-621Governs Limited PartnershipsThis act amends Section 1 of Act 2009-

621 to provide an effective date that theuniform act governs certain limited partnerships. Effective date: March 22, 2010

Unless an election is made pursuant tosubsection (a) (2), limited partnershipsformed before Jan. 1, 2010, continue to begoverned in their entirety by Chapter 9Buntil Jan. 1, 2011. Beginning Jan. 1, 2011,this chapter shall govern all limited partnerships.

Act 2010-220 (SB 179) RemovesConstruction Recruitment Institutefrom the 21st Century AuthorityThis bill removes the Alabama Construc-

tion Recruitment Institute from oversight ofthe 21st Century Authority and establishesit as an independent authority; establishesduties and powers; provides that certain

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2010 Revenue-related LegislationCollections Services Division Director Dwight Pridgen (right) retires after 34 years and seven months of service with the State of Alabama. His retirement acknowledg-ments are presented by former Commissioner Tim Russell and Assistant Commissioner Cynthia Underwood.


fees previously collected and paid to the21st Century Authority are transferred tothe Recruitment Training and PromotionFund; provides for deposit of constructioncraft industry fees, collected by the Rev-enue Department, into the Recruitmentand Promotion Fund in the State Treasury;subjects the institute to annual audit by De-partment of Examiners of Public Accounts.Effective date: March 22, 2010

Division 2 of Article 18, Title 41, shall ex-pire in accordance with the repeal date inAct 2009-561.

Act 2010-254 (HB 109) Base WageRequirements of QualifyingEconomic Development ProjectsThis bill defines the term “base wage re-

quirement” for qualifying economic devel-opment projects. For qualifying projectsfor which an investing company filed a writ-ten statement of intent as defined in Sec-tion 40-18-191 with the Department ofRevenue on or before Nov. 21, 2009, theterm “base wage requirement” as defined inSection 40-18-190 (a) (1) a. means the term“base wage requirement” as defined in Sec-tion 40-18-190 (a) (1) prior to the effectivedate of Act 2009-722. Effective date: March30, 2010

Act 2010-261 (SB 383) CreatesPOW/MIA Motor Vehicle andMotorcycle License PlateThis bill creates a distinctive POW/MIA

motor vehicle and motorcycle license plate;provides for additional $5.00 annual fee. Ef-fective date: June 1, 2010

Act 2010-510 (HB 335) EstablishesDistinctive License Plate Categoriesfor Military MembersThis bill establishes new distinctive li-

cense plate categories for certain membersand prior members of the United States AirForce, Army, Navy, Coast Guard, and Mer-chant Marines; provides for an additional$3.00 fee for the initial issuance of the li-cense plate. Effective date: Jan. 1, 2011

Act 2010-511 (HB 369) Sales and UseTax Exemption Form forCommercial Fishing VesselsThis bill creates a specific form for sales

and use tax exemption for the purchase of

material, equipment, or machinery for com-mercial fishing vessels described in subdivi-sion (13) of subsection (a) of Section40-23-4. Effective date: July 1, 2010

Act 2010-514 (HB 448) Clarifies Salesand Use Tax Exemption forWatercraftThis bill amends Sections 40-23-4 and

40-23-62; clarifies the sales and use tax ex-emption for watercraft. Effective date: July1, 2010

Act 2010-520 (HB 721) ChangesPrivilege Tax Rate and Imposes NewSupplemental Tax on NursingFacilitiesThis bill amends Section 40-26B-21;

changes privilege tax on nursing facilities toan annual rate of $1,899.96; imposes a newsupplemental tax of $1,063.08 for the pe-riod Sept. 1, 2010 through Aug. 31, 2011; re-duces percentage of total nursing facilityrevenues used when considering a reduc-tion of the tax; provides for the prepaymentof the supplemental privilege tax throughan increase in the Medicaid per diem ratebeginning in January 2011. Effective date:Sept. 1, 2010

Act 2010-557 (HB 260) “Reemploy-ment Act of 2010”; Income Tax Deduc-tion for Businesses HiringUnemployed Persons

This bill provides an incentive for jobcreation for unemployed persons by creat-ing an income tax deduction for businessesthat hire certain unemployed persons. Thededuction, with exceptions listed in Section2. (b)., shall equal 50% of the gross wagespaid to each person hired by an employerwho, at the time of employment, was draw-ing unemployment compensation or whoseunemployment benefits had expired. Effec-tive date: For tax years 2011 and 2012

Act 2010-563 (HB 329) ExemptsTransfer or Sale of State-OwnedReal Property from NormalProcedureThis bill amends Section 9-15-82; ex-

empts the transfer or sale of certain state-owned real property from the normalstatutory procedure; decreases the timeframe in which the state may repurchase

property sold by the state from five to threeyears; includes municipal commercial de-velopment authorities within the exemption. Effective date: Retroactive toJune 29, 1995

Act 2010-568 (HB 504) ConformsAlabama Estimated Income TaxPayments to Federal SystemThis bills amends Sections 40-18-80 and

40-18-80.1, and repeals Sections 40-18-82,40-18-83, 40-18-83.1, and 40-18-85. This billconforms Alabama’s estimated income taxpayments to the federal system; raises thefiling and payment threshold for Alabamaestimated quarterly tax for individuals hav-ing income not subject to withholding from$100 to $500; and lowers the quarterly esti-mated payment requirement for corpora-tions to $500 in anticipated Alabama taxliability. Effective date: For all tax years be-ginning after Dec. 31, 2009

Act 2010-579 (HB 179) ClarifiesDefinitions of New Vehicle andUsed Vehicle for Titling PurposesThis bill amends Sections 32-8-2, 32-8-6,

32-8-31, 32-8-32, 32-8-36, and 32-8-64. Thisbill clarifies “new vehicle” and “used vehi-cle” for titling of motor vehicles; providesfor the fees ADOR charges for certainrecords relating to titles and registrations;provides for privacy of records; authorizesADOR to prescribe the manner of paymentof fees; requires that a motor vehicle bephysically inspected, with exceptions, bythe license plate- issuing official; providesalternative methods for lien releases when alienholder is no longer in business. Effec-tive date: Oct. 1, 2010

Act 2010-582 (HB 262) Free LicensePlate for Widow/Widower ofVolunteer Firefighter or AnyFirefighter who Dies in Line of DutyThis bill amends Section 32-6-272; re-

quires Alabama Forestry Commission andthe Firefighters’ Personnel Standards andEducation Commission to prepare lists ofeligible persons for distinctive licenseplates; provides for receipt of a free licenseplate for a widow or widower of a volunteerfirefighter, or any firefighter who dies in theline of duty. Effective date July 1, 2010

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Act 2010-689 (HB 62) RegistrationFees for Governmental andVolunteer Fire Department LicensePlatesThis bill amends Section 40-12-250; pro-

vides for the determination of the registra-tion fees for governmental and volunteerfire department license plates by ADOR;fees may not exceed the fees required forstandard passenger license plates as pro-vided for in Sections 40-12-242 and 40-12-273; provides for an issuance fee in theamount as provided for in Section 40-12-271; specifies that governmental and volun-teer fire department license plates may betransferred to another vehicle upon certainconditions being met; provides for the re-placement of license plates; provides thatall fees associated with governmental andvolunteer fire department license plates willbe retained by ADOR to cover administra-tive costs. Effective date: Jan. 1, 2011

Act 2010-710 (HB 549) DistinctiveLicense Plates for RetiredProfessional FirefightersThis bill creates distinctive license plates

for retired professional firefighters. Effec-tive date: July 1, 2010

Distinctive plates or tags as provided bythis act shall be prepared and furnished forthe licensing year commencing Jan. 1, 2012,and thereafter as is provided by law for theissuance of other license plates.

Act 2010-716 (HB 686) ReinstatementFees and Submission of CurrentProof of Insurance by VehicleOwners to Administrative Office ofCourtsThis bill amends Section 32-7A-9; allows

the Administrative Office of Courts or theCircuit Court Clerk of any county to collectapplicable fees and reinstate vehicle regis-trations resulting from Mandatory LiabilityInsurance registration suspensions; pro-vides that 15% of the reinstatement feescollected by the Administrative Office ofCourts or the Circuit Court Clerk will be re-tained by their respective office and the bal-ance will be remitted to ADOR; providesthat ADOR will prescribe the manner of re-instatement fees; 15% of the net proceedsreceived by ADOR will be deposited into

the Alabama Peace Officers’ Annuity andBenefit Fund. Effective date: Jan. 1, 2011

Act 2010-727 (SB 326) ExpandsPurpose of Alabama Land BankAuthority; Removes Minimum Datethat Taxes have been Unpaid fromthe Definition of “Tax-DelinquentProperty”This bill amends Sections 2, 4, 5, 6, 7,

and 8 of Act 2009-738, 2009 Regular Ses-sion; expands purpose of Alabama LandBank Authority; removes the minimum datethat taxes have been unpaid from the defi-nition of the term “tax-delinquent prop-erty”; alters board voting procedures;establishes civil immunity for board mem-bers; allows authority to hold in its namecertain property that has been sold fordelinquent taxes and allows the property tobe redeemed for taxes; allows authority torepeal and rescind all unpaid state taxes atthe time it sells or disposes of the propertypurchased for nonpayment of taxes; author-ity may distribute property for economicdevelopment; limits the time the authoritymay retain ownership of delinquent prop-erty; allows authority to extinguish right ofredemption for property sold for delin-quent taxes.

Effective date: April 30, 2010

Act 2010-732 (SB 530) PermitRequirements and Record Keepingto Prevent Transient Operation ofGold or Precious Item BuyingBusinessThis bill provides for permit require-

ments and record keeping that would pre-vent the transient operation of a gold orprecious item buying business; providesthat a violation of this act is a Class B misde-meanor; requires dealers engaged in thebusiness of purchasing precious items forreselling purposes to purchase a state li-cense in the amount of $100.00 and acounty license in the amount of $50.00. Ef-fective date: July 1, 2010

Act 2010-748 (HB 168) ProvidesException from Requirement thatOwner of Salvage Vehicle be aLicensed Rebuilder in Order toApply for an InspectionThis bill amends Section 32-8-87; allows

the owner to provide evidence that he orshe was the owner prior to the event whichcaused the salvage title to be issued in lieuof being a licensed rebuilder in order toapply for inspection of the salvage vehicle;eliminates the provision requiring ADOR toapprove nationally-recognized indexes anddatabases of retail values for the purpose ofsalvage vehicle valuations; authorizes anowner of a salvage vehicle to apply for aninspection in certain cases where the sup-porting paperwork is incomplete or unavail-able by posting a bond in accordance withSection 32-8-36; provides that any motor ve-hicle for which a certificate of title has beenissued by any state with the notation of“junk,” “parts car,” “parts only,” “nonre-buildable,” or when a bill of sale has beenissued for transfer of the vehicle with simi-lar language, the vehicle shall be consid-ered to be “junk” and shall not be titled inthis state; requires that any scrap metalprocessor who acquires a motor vehicle forthe purposes of recycling it into metallicscrap for remelting purposes shall surren-der the certificate of title to ADOR for can-cellation; requires that scrap metalprocessors shall maintain records for a pe-riod of five years of every motor vehicle ac-quired for the purpose of recycling it intometallic scrap; provides criminal penaltiesfor violation of these provisions. Effectivedate: June 1, 2010

Local LegislationAct 2010-37 (HB 110) Prohibits

Occupational Tax in MadisonCountyThis bill proposes a constitutional

amendment to prohibit the imposition ofan occupational tax in Madison County. Ef-fective date: Contingent upon voter approval

Act 2010-108 (HB 107) TVADistribution in Madison CountyThis bill amends Section 1 of Act No. 80-

277, 1980 Regular Session, as last amendedby Act No. 2007-320, 2007 Regular Session,to provide further for the distribution ofMadison County’s share of payments madeby the Tennessee Valley Authority to the

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state in-lieu-of-taxes. Effective date: Feb. 23,2010

Act 2010-112 (SB 122) ProhibitsOccupational Tax in Morgan CountyThis bill proposes a constitutional

amendment to prohibit the imposition ofan occupational tax in Morgan County. Ef-fective date: Contingent upon voter approval

Act 2010-128 (SB 99) ProhibitsOccupational Tax in LimestoneCountyThis bill proposes a constitutional

amendment to prohibit the imposition ofan occupational tax in Limestone County.Effective date: Contingent upon voter approval

Act 2010-134 (SB 13) ProhibitsOccupational Tax in LawrenceCountyThis bill proposes a constitutional

amendment to prohibit the imposition ofan occupational tax in Lawrence County. Ef-fective date: Contingent upon voter approval

Act 2010-135 (HB 44) Redistributionof TVA Payments; Reallocation ofLiquor Tax RevenuesThis bill amends Section 40-28-2 to pro-

vide for the redistribution of in-lieu-of-taxespayments made by the Tennessee Valley Au-thority; reallocates certain liquor tax rev-enues. Effective date: March 4, 2010

Beginning in fiscal year ending Sept.30, 2010, the distribution provided in sub-section (c) (1) to the dry counties and mu-nicipalities that are not served by T.V.A. shallbe reduced by an amount equal to thefunds allocated to those dry counties andmunicipalities from liquor tax revenues pur-suant to Section 2 of this act, until the ag-gregate annual amount of revenue receivedby those dry counties and municipalitiesfrom the provisions of Section 2 is equal tothe amount of T.V.A. payments distributedto the dry counties and municipalitiestherein pursuant to this subdivision for thefiscal year ending Sept. 30, 2009.

For fiscal year ending Sept. 30, 2011, anadjustment will be made to the liquor taxrevenues distributed to non-served T.V.A

counties to make the total amount paid tothese counties equal to the amount of T.V.Arevenues the counties would have receivedprior to the amended distribution in thisact.

Act 2010-196 (HB 390) AuthorizesMonroe County Commission toLevy Special Sales and Use TaxThis bill amends Act 85-898, Second Spe-

cial Session 1985; authorizes MonroeCounty Commission to levy a special salesand use tax in the county; tax revenue willbe distributed to the City of Monroeville. Ef-fective date: March 9, 2010

Act 2010-219 (SB 169) Reenacts TaxExemption for Hudson AlphaInstitute for BiotechnologyThis bill reenacts Section 40-9-34, which

exempts the Hudson-Alpha Institute forBiotechnology from all state, county, andmunicipal taxes, licenses, fees, and charges,including privilege or excise tax. The billalso clarifies that there was no intent to re-peal the section pursuant to Act 2009-144 ofthe 2009 Regular Session. Effective date:Retroactively effective to Oct. 1, 2008

Act 2010-226 (SB 339) Prohibits anyMunicipality Located outside ofBlount County from Imposing TaxThis bill proposes a constitutional

amendment to prohibit any municipality lo-cated entirely outside of Blount Countyfrom imposing any municipal ordinance orregulation, including, but not limited to,any tax, zoning, planning, or sanitation reg-ulations, and any inspection service in itspolice jurisdiction located in Blount County.Effective date: Contingent upon voter ap-proval

Act 2010-393 (SB 459) AuthorizesLimestone County Commission toApply Sales and Use Tax to Paymentof Refinanced DebtThis bill amends Act No. 2001-557, 2001

Regular Session; authorizes the LimestoneCounty Commission to apply sales and usetaxes authorized by the act to payment ofrefinanced debt. Effective date: April 8,2010

Act 2010-396 (HB 458) AuthorizesClass 2 Municipalities to File

Expedited Quiet Title andForeclosureThis bill authorizes Class 2 municipali-

ties to file an expedited quiet title and fore-closure action in circuit court to establishclear title to abandoned tax sale propertieswithin the corporate limits that are ac-quired from the State Land Commissionerpursuant to Chapter 10, Title 40; providesfor procedure and due process for the ac-tion in circuit court. Effective date: April 8,2010

Act 2010-402 (SB 490) Additional Taxon Tobacco and Tobacco Productsin Randolph CountyThis bill amends Sections 3 and 6 and re-

peals Section 5 of Act 2003-213, 2003 Regu-lar Session; provides an additional tax ontobacco and tobacco products in RandolphCounty; provides for collection and distri-bution of the tax; abolishes the DistrictCommunity Service Office. Effective date:Sept. 30, 2010

Act 2010-439 (HB 379) ProhibitsMunicipalities Located outsideBlount County from Imposing TaxThis bill proposes a constitutional

amendment to prohibit any municipality lo-cated entirely outside of Blount Countyfrom imposing any municipal ordinance orregulation, including, but not limited to,any tax, zoning, planning, or sanitation reg-ulations, and any inspection service in itspolice jurisdiction located in Blount County.Effective date: Contingent upon voter approval

Act 2010-442 (HB 791) Continued Levyand Collection of Special AdValorem Tax in Chambers CountyThis bill proposes a constitutional

amendment authorizing Chambers Countyto continue to levy and collect, in each fis-cal or tax year until and including the fiscalor tax year beginning on Oct. 1, 2032, andending on Sept. 30, 2033, the special countyad valorem tax exclusively for public librarypurposes; prohibits use of any of the pro-ceeds of the special tax for payment of costsor expenses incurred in connection withthe levy and collection of the tax. Effectivedate: Contingent upon voter approval

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Act 2010-518 (HB 610) Renewal ofMotor Vehicle, Boat, and BusinessLicenses in Winston CountyThis bill provides an optional procedure

for renewing motor vehicle, boat, and busi-ness licenses by mail or electronic means bythe Winston County Judge of Probate andRevenue Commissioner; mailing fees to bedeposited in county’s general fund. Effec-tive date: Contingent upon voter approval

Act 2010-526 (HB 762) ChambersCounty Authorized to RaiseAdditional Sales and Use TaxThis bill amends Section 45-9-245.02; au-

thorizes the Chambers County Commissionto levy an additional sales and use tax; pro-vides for amount of the levy in the policejurisdiction of a municipality located out-side the county. Effective date: April 21,2010

Act 2010-549 (SB 575) TVADistributions in Limestone CountyThis bill amends Section 1 of Act 79-501,

1979 Regular Session, as last amended byAct 2008-95, 2008 Regular Session; providesfor the distribution of certain T.V.A pay-ments in Limestone County. Effective date:April 21, 2010

Act 2010-552 (SB 423) Prohibits anyMunicipality not Located in BlountCounty from Imposing TaxesThis bill proposes a constitutional

amendment to prohibit any municipalitynot located entirely inside of Blount Countyfrom imposing any municipal ordinance orregulation, including, but not limited to,any tax, zoning, planning, or sanitation reg-ulations, and any inspection service in itspolice jurisdiction located in Blount County.Effective date: Contingent upon voter approval

Act 2010-588 (HB 641) Distribution ofPrivilege License Tax Proceeds toHistoric Blakely AuthorityThis bill amends Section 45-2-244.183;

provides for the distribution of 25% of theproceeds of the privilege license tax in Bald-win County to be equally split between theFort Morgan State Historic Site and the His-toric Blakely Authority; proceeds for His-toric Blakely Authority shall be expended

for capital outlay and operations. Effectivedate: July 1, 2010

Act 2010-589 (HB 705) Distribution ofOil and Gas Proceeds in Citronelle,Mobile CountyThis bill amends Sections 1, 2, and 3 of

Act 85-490 of the 1985 Regular Session; pro-vides for the distribution of 20% of all taxproceeds of the 4% tax paid to the City ofCitronelle pursuant to Section 40-20-8 (c)(2) to the county’s volunteer fire depart-ment and historical society, up to a maxi-mum of two thousand dollars each permonth. Effective date: July 1, 2010

Act 2010-592 (HB 735) ExemptsManufacturing Equipment andManufactured Homes from 3%Privilege or License Tax in EscambiaCountyThis bill amends Sections 2, 3, and 4 of

Act 2004-325 of the 2004 Regular Session;exempts manufacturing equipment andmanufactured homes from the 3% privilegeor license tax against gross sales or gross re-ceipts of a business in Escambia County;levies a consumers’ use tax and a sellers’use tax; provides for the collection of thetax; ratifies and confirms prior acts of thecounty commission in the implementationof the act. Effective date: Retroactive toJune 1, 2004

Act 2010-596 (HB 726) Levies aLodging Tax in Lauderdale CountyThis bill amends Sections 1 and 7 of Act

86-441, 1986 Regular Session, as lastamended by Act 2006-377, 2006 RegularSession; levies a lodging tax in LauderdaleCounty and provides for distribution of therevenue; provides that 25% of the proceedscollected be distributed to the municipalitywhere the lodging or accommodation is lo-cated; clarifies that bed and breakfast estab-lishments are included as a form of lodging.Effective date: April 22, 2010

Act 2010-601 (SB 551) TVADistributions in Morgan CountyThis bill provides for the allocation and

expenditure of money received from T.V.Adistributed to Morgan County pursuant toAct 2010-135, 2010 Regular Session, to theHartselle, Decatur, and Morgan County

Boards of Education for the fiscal years2010 and 2011. Effective date: April 22,2010

Act 2010-605 (HB 763) ProhibitsMunicipal Business License Tax onRental of Residential Real Estate inCalhoun CountyThis bill proposes a constitutional

amendment to prohibit the imposition of amunicipal business license tax in CalhounCounty on the rental of residential real es-tate based on a per unit basis. Effectivedate: Contingent upon voter approval

Act 2010-728 (SB 450) EstablishesJackson/DeKalb Counties IndustrialDevelopment AuthorityThis bill establishes the Jackson/DeKalb

Counties Industrial Development Authorityfor the purpose of marketing and develop-ing property in the vicinity of Northeast Ala-bama Community College; provides formembers and operation of the authority. Ef-fective date: July 1, 2010

Act 2010-745 (HB 821) TVADistributions in Cherokee CountyThis bill provides for the distribution of

Cherokee County’s share of any T.V.A distri-butions received pursuant to Act 2010-135,HB44, of the 2010 Regular Session. Effectivedate: April 30, 2010

Act 2010-749 (HB269) Exempts Eagles’Wings from Sales and Use TaxesThis bill exempts Eagles’ Wings, Incorpo-

rated, from paying or collecting any state,county, and municipal sales and use taxes.Effective date: July 1, 2010

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Required Monthly Returns Tax Activity

10th • Medicaid-related tax return and paymentdue for nursing facilities.

15th • Gasoline information return due fromcarriers, transporters, and warehouses.

• Lubricating oils information return due from carriers,transporters, and warehouses.

• Motor carrier mileage tax return and payment due.• Oil and gas production tax and privilege tax returnand payment due two months following month ofproduction.

17th • Withholding return and payment duefrom those employers required to remit on amonthly basis

20th • Aviation fuel tax return and payment due.• Coal severance tax return and payment due.• Coal transporters’ and purchasers’ returns due.• Contractors’ gross receipts tax return and paymentdue.

• Gasoline tax return and payment due.• Iron ore severance tax return and payment due.• Local solid minerals tax returns and payments due.• Lodgings tax return and payment due.• Lubricating oils tax return and payment due.• Medicaid tax return and payment due frompharmaceutical service providers.

• Mobile telecommunications tax return and paymentdue.

• Motor fuel tax return and payment due.• Alabama Uniform Severance tax return andpayment due.

• Pari-mutuel pool tax return and payment due.• Rental or leasing tax return and payment due.• Sales tax (state and local) return and payment due.• Scrap Tire Environmental Fee due.• Tobacco tax (state and county) return and paymentdue.

• Underground and aboveground storage tank trustfund charge due.

• Use tax return and payment due.• Utility gross receipts tax return and payment due.

30th • Hazardous waste fee return and paymentdue.

Last dayof month • State horse wagering fee return and

payment due.

Quarterly/Annual Tax Activity(September - December 2010)

September15 • Third installment of estimated corporate in-come tax due (for calendar-year taxpayers).

• Third installment of estimated personal income taxdue.

25 • Hydroelectric gross receipts’ return and pay-ment due.

October1 • Property tax on real and personal property due.• Automotive dismantlers and parts recyclers’ licensedue.

• Business privilege license fee due.• Quarterly Dry Cleaning Trust Fund Fee return andpayment due.

• Manufactured home registration and fee due.• Motor fuel identification markers issued.• Motor vehicle dealers, reconditioners, rebuilders andwholesalers’ license tax due.

• Quarterly Solid Waste Disposal Fee return andpayment due.

Note: Effective Oct. 1, 2003, dealer license platesand manufacturer license plates will be issued throughcounty license plate issuing officials.• Store and chain store license tax due.• Utility license (2.2%) return and first quarterlypayment due.

Tax Calendar


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14 • Annual wholesale oil li-cense return and payment due.

20 • Quarterly sales tax returnand payment due.

• Quarterly use tax return andpayment due.

• Quarterly rental or leasing taxreturn and payment due.

30 • Quarterly forest products’severance tax return and pay-ment due.

31 • Quarterly withholding re-turn and payment due from em-ployer.

• Quarterly IFTA tax return andpayment due.

• Annual business privilegelicenses delinquent after thisdate.

• Store and chain store licensesdelinquent after this date.

November30 • Last day to register andpay fee for manufactured homeswithout penalty.

December15 • Fourth installment of esti-mated corporate income tax due(for calendar-year taxpayers).

31 • Property tax on real andpersonal property delinquentafter this date.

• Expiration of the previouscalendar year’s motor fuelidentification markers.

• Property tax assessmentsdelinquent after this date.

• Last day to claimexemptions/abatements on advalorem tax assessments.

Statement of Gross Tax Collections

Through End of 3rd Quarter FY 2010(April, May, June 2010)

FYTD 2009-2010 FYTD 2008-2009 % Change

Business Privilege Tax $ 98,855,552.02 $ 99,557,743.16 (0.71)Gasoline 302,357,600.52 297,256,979.68 1.72 Income Tax-Corporate 344,888,749.77 391,332,161.73 (11.87)Income Tax-Individual 2,478,655,961.32 2,593,075,322.07 (4.41)Income Tax (Total) 2,823,544,711.09 2,984,407,483.80 (5.39)Motor Fuels 92,152,409.39 88,168,765.71 4.52 Oil & Gas Privilege (8%) 51,794,325.27 65,269,793.78 (20.65)Oil & Gas Production (2%) 15,994,932.67 27,044,879.82 (40.86)Sales 1,380,347,501.30 1,374,736,982.41 0.41 Use Tax 184,421,952.40 191,387,242.08 (3.64)Utility Gross Receipts 313,846,976.57 318,963,109.28 (1.60)

SUBTOTAL 5,263,315,961.23 5,446,792,979.72 (3.37)SUBTOTAL (OTHER TAXES) 1,011,590,879.61 1,023,898,993.24 (1.20)

TOTAL (ALL TAXES) $6,274,906,840.84 $6,470,691,972.96 (3.03)

Interest Rates Remain the Same for Third Calendar Quarter 2010

Interest rates for the calendar quarter beginning July 1, 2010, remain the same (4%a.p.r.) for underpayments, according to the Internal Revenue Service Ruling 2010-14.This ruling was scheduled to appear in Internal Revenue Bulletin No. 2010-26, dated

June 28, 2010.Under Sect. 40-1-44, Code of Alabama 1975, the Department of Revenue will calculate

interest on underpayments and overpayments (where applicable) at this same annual rate(4%); however, land sold by the state for taxes, shall be calculated at 12% in accordancewith Sect. 40-5-9. (Historical rates shown below.)

Interest Rates By Calendar Quarter(Established by: 26 USCA §6621; §40-1-44, Code of Alabama 1975)

1ST QTR 2ND QTR 3RD QTR 4TH QTR

2001 9% 8% 7% 7%2002 6% 6% 6% 6%2003 5% 5% 5% 4%

2004 4% 5% 4% 5%2005 5% 6% 6% 7%2006 7% 7% 8% 8%

2007 8% 8% 8% 8%2008 7% 6% 5% 6%2009 5% 4% 4% 4%2010 4% 4% 4%