A new law offers liability relief for business taxpayers who use the state’s ONE SPOT electronic tax filing system and rely on the state for correct information on local tax rates.

Act No. 2018-150 by Sen. Paul Sanford, R-Huntsville, offers businesses liability relief for using the wrong tax rate:

• if local governments do not properly notify the state of local tax increases, and
• if, as of March 1, 2019, the state provides incorrect information on the total tax rates for sales, use, rental or lodgings taxes.

The legislation also requires local taxing jurisdictions to notify the Alabama Department of Revenue of a tax change 60 days in advance, rather than the current 30 days. The bill shifts the effective date for local tax increases until the first day of the third month after the Revenue Department has received notification of an increase.

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