AL SB305

Amends Section 40-29-70 of the Code of Alabama 1975 to impose penalties on taxpayers who submit dishonored checks, money orders, or electronic funds as tax payment.

Establishes a penalty equal to 10 percent of the dishonored payment amount, with a minimum penalty of $10 for payments under $500.

Exempts taxpayers from penalties if they acted in good faith with reasonable cause to believe the payment would be honored, or if they settle within 10 days of notification of the dishonored payment.

Applies the penalty collection process in the same manner as tax collection, upon notice and demand by the commissioner, delegate, or other taxing authority.

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