Law ends joint consumer/retailer petitions for tax refunds

A consumer can now directly petition the Alabama Department of Revenue for a refund of sales, use, lodging or public utility taxes.

Previously, the consumer who overpaid or paid tax that wasn’t owed to the business taxpayer and the business that collected and remitted the tax to the Revenue Department had to file a joint petition for a refund. This law allows the purchaser, either an individual or corporation, to claim a tax refund reimbursement of more than $25 directly from the Department of Revenue.  For amounts of state or local tax less than $25, the purchaser can make an annual petition for a refund with the department.

The law gives the department authority to set the procedure for petitions and refunds.

On March 8, 2018, the governor signed Act No. 2018-180 by Sen. Steve Livingston, R-Scottsboro and Rep. Chris Pringle, R-Mobile.

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