SB244 Summary

• Amends Section 40-1-44 of the Code of Alabama 1975 to establish when interest accrues on tax refunds owed to taxpayers by the department.

• Interest on properly documented refund petitions shall begin accruing 30 days after the taxing division receives the refund petition and supporting documentation.

• Interest is computed at the same underpayment rate established by the Secretary of the Treasury under 26 U.S.C. §6621.

• Maintains existing exceptions to interest payments for specific taxes including gasoline taxes for agricultural purposes, tobacco taxes, and certain motor fuels excise taxes.

• Becomes effective on the first day of the third month following passage and approval by the Governor.