"The nine most terrifying words in the English language are: “I'm from the government and I'm here to help.'" --President Ronald Reagan

Alabama Department of Revenue – Commissioner Julie P. Magee

ADOR is responsible for more than 50 different taxes but just a few really make up the bulk of our collections.

For fiscal year ending 2010, ADOR reported total revenue collections of $8,197,088,600.95.

For the fiscal year ending 2014, total collections were $9,402,559,270.47, an increase of $1,205,470,669.52 or 14.7%.

Two to five percent growth rate in each of the past four years helps fund the General Fund but mainly the Education Trust Fund.

While none of these yearly increases are large, we are proud to say that each year, over the past four years; we’ve grown total collections from the prior year anywhere from two to five percent.

OPPALOptional Personal Property Assessment Link

Act 2014-415 (HB 108)

Optional Non-Itemized Short Form for Filing Business Personal Property Tax Return

Provides for an optional non-itemized short form for certain taxpayers to file their taxable personal property each year; requires the creation of a state portal that taxpayers may use to electronically file their Business Personal Property Return with any county in the state

Short form allows taxpayers who own taxable tangible personal property that has a total acquisition cost of less than $10,000 to file the short form in place of filing an itemized listing of their assets

Provides provisions for the audit of any short form account and penalties for falsely filing the short form when it is determined that the assets actually had a total acquisition cost greater than $10,000

Requires the Department of Revenue to develop and implement a state portal through which taxpayers may file their yearly Business Personal Property Return with the appropriate county

• Implementation of the state portal must be ready by October 1, 2016

• County tax assessing and tax collecting officials will not be prevented from providing an electronic system for the filing of applicable business personal property tax returns

• County tax assessing and tax collecting officials will not be prevented from enforcing mandatory electronic filing of a business personal property tax return pursuant to a local act of the Legislature

Some may not actually receive a state income tax refund because we will be sending it to you. Seriously.

The County Association will manage the program.

Act 2014-321 (HB 82)

Allows All Alabama Municipalities and Counties to Offset State Individual Income Tax Refunds for Debts Owed Resulting from Any Administrative or judicial Proceeding

Allows all municipalities and counties in Alabama to offset state individual income tax refunds for debts owed to them as a result of any administrative or judicial proceeding

A county or municipality may submit a debt of at least $25 owed to it for collection; a county or municipality must submit the debt to the Department of Revenue through the Association of County Commissions of Alabama or an entity established through the Association of County Commissions of Alabama, or the Alabama League of Municipalities or an entity established through the Alabama League of Municipalities t

The organization that submits a debt on behalf of any county or municipality may assess a fee of $25 for submitting the debt.

Effective Date: July 1, 2014

It’s Important to Update Your Forms!

Act 2014-430 (SB 312) Applicants for Certain Licenses Required to Submit FEIN or SSN Requires an applicant for a license issued by the Department of Revenue/County to provide their federal tax identification number (FEIN) or Social Security number (SSN) when applying for a new license or renewing a license pursuant to Articles 2, 6, 8 and 9 of Chapter 12, Title 40; Licenses affected by this bill are new licenses and renewals of business privilege licenses, store licenses, regulatory dealer and automotive dismantler licenses; county licensing officials must transmit business privilege license application information for new licenses and renewals electronically to the Department of Revenue.

Preparing for 2015

Preparing for the upcoming session

ADOR is working with the Administration and many legislators by providing a long laundry list of revenue raising alternatives.

It is too soon to know which of these they will consider.

There is so much ear-marking in our history that even with our increased collections, the General Fund will be in serious trouble.

No one wants their Ox gored. The final solutions will likely be those that affect the smallest population but raise the most revenue.

We model many alternatives using actual Alabama Income Tax returns so we have the means to provide good estimates for any possible scenario.

In Conclusion

Currently, the Department utilizes micro-simulation tax modeling software to make projections regarding tax changes involving income tax, sales tax and business privilege tax. This information is relied upon by the Legislative Fiscal Office (who places fiscal notes on bills) and the Governor’s Executive Budget Office.

The Department is expanding its’ micro-simulation tax modeling software to include property taxes so that more accurate and timely projections regarding proposed changes in property tax laws can be made. The Department is in the process of notifying the property tax officials in each county and requesting that they make available their property tax data for use in this tax modeling system. We are requesting that all data be delivered by no later than January 31, 2015, so that it can be properly loaded and tested prior to the 2015 legislative session.

WE NEED YOUR HELP ASAP!

Any Questions?

Thank You!