SB12 Summary

• Amends Section 40-1-44 of the Alabama Code to require the Department of Revenue to refund erroneously paid or overpaid taxes within 30 days of receipt of the tax return.

• Changes the interest payment timeline for withholding tax and estimated tax overpayments from 90 days after the due date to 30 days after receipt of the return by the department.

• Sets the interest rate on income tax refunds at 12 percent annually instead of using the federal underpayment rate established by the Secretary of the Treasury.

• Maintains existing exceptions where no interest is paid on certain tax refunds including gasoline taxes, motor fuels excise taxes, tobacco taxes, and other specified categories.

• Takes effect immediately upon passage and approval by the Governor.