SB183 Summary

• Amends Section 40-1-44 of the Alabama Code to modify when the Department of Revenue must pay interest on tax refunds.

• Requires interest to be paid on properly documented refund petitions beginning 30 days after the department receives the refund petition and supporting documentation.

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

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

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