AL HB89

Amends Section 40-29-70 of the Alabama Code to impose penalties on taxpayers who tender dishonored money orders or electronic funds in payment of tax liabilities.

Penalty equals 10 percent of the dishonored payment amount, except for payments under $500, which incur a penalty of $10 or the payment amount, whichever is lesser.

Penalty applies upon notice and demand by the tax commissioner or delegate and is collected in the same manner as tax.

Exceptions allow taxpayers to avoid penalty if they tendered payment in good faith with reasonable cause to believe it would be honored, or if they settle within 10 days after notification of the dishonored check, money order, or electronic funds.

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