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Proposed Rule Changes

Key:

  • Upcoming Rule Hearings: Awaiting Public Hearing
  • Rules Pending Agency Certification: Hearing Held; 90 days to Certification
  • Rules Pending Final Adoption: Awaiting Required 45 day Period for Legislative Oversight Review

Rulemaking Timeline Under Administrative Procedures Act Title 41 Chapter 22

  1. Proposed Rule Filed with LSA (3rd week of each month)
  2. Notice of Intended Action published in the Alabama Administrative Monthly §41-22-5(a)(1)
  3. Department holds Public Hearing 35 – 90 days from publication date §41-22-5(a)(1)
  4. Hearing Officer makes recommendation to Revenue Commissioner
  5. Final Approval from Revenue Commissioner
  6. Final Rule must be filed with LSA within 90 days of Public Hearing §41-22-6(b)
  7. A business impact statement included, if required §41-22-5.1(c)
  8. Rule becomes effective 45 days after the Certification of the Administrative Rule is published in the Administrative Monthly §41-22-6(c)

Upcoming Rule Hearings

All interested parties may present their views in writing to the Secretary of the Alabama Department of Revenue, Room 4131, Gordon Persons Building, 50 N Ripley Street, Montgomery, Alabama 36132 at any time during the thirty-five (35) day period following publication of the notice or by appearing at the hearing.

Generally, public hearings are held in the Gordon Persons Building, Room 1203, located at 50 North Ripley Street, Montgomery, Alabama 36132. There are two public entrances to the Gordon Persons Building, the Ripley/Pelham Entrance and the Monroe/Jackson Entrance. For Directions to Room 1203 from these entrances click here. **Revenue is monitoring developments pertaining to the Coronavirus (COVID-19) and is following guidance from federal and state officials. Out of an abundance of caution for your health and well-being, as well as our employees, all public hearings will be conducted via web-conference until further notice. To participate in an upcoming web-conference public hearing please contact the Tax Policy and Governmental Affairs Division at taxpolicy@revenue.alabama.gov or 334-242-1380 to obtain the appropriate sign-in information for a specific public hearing date. **

Rule Number Description Intended Action Substance of Proposed Action Date, Time; Location, Hearing to be Held
810-27-1-.09 Apportionment Formula: Double Weighting the Sales Factor. Amended Act 2021-1 amended Section 40-27-1 to provide that a single sales factor be used to apportion a multistate taxpayer’s income to Alabama effective for periods beginning on or after January 1, 2021. This rule is being amended to incorporate those changes. A public hearing will be at 1:30 pm on Tuesday, November 9, 2021, via web-conference. To participate in the upcoming web-conference public hearing please contact the Tax Policy and Governmental Affairs Division at Taxpolicy@revenue.alabama.gov or 334-242-1380 to obtain the appropriate sign-in information.
810-5-1-.205 Commitment to Purchase Distinctive License Plates Amended Pursuant to the Red Tape Reduction Act 2013-88, this rule has been reviewed and is being amended to update formatting and to remove specific registrant requirements submitted through the pre-commitment portal. A public hearing will be at 1:30 pm on Tuesday, November 9, 2021, via web-conference. To participate in the upcoming web-conference public hearing please contact the Tax Policy and Governmental Affairs Division at Taxpolicy@revenue.alabama.gov or 334-242-1380 to obtain the appropriate sign-in information.
810-5-1-.207 Motor Vehicle Wreckers Amended This rule has been reviewed pursuant to the Red Tape Reduction Act 2013-88 and is being amended to incorporate language referencing the issuance of the restricted wrecker license plate and to make format changes for a more concise topic flow. A public hearing will be at 1:30 pm on Tuesday, November 9, 2021, via web-conference. To participate in the upcoming web-conference public hearing please contact the Tax Policy and Governmental Affairs Division at Taxpolicy@revenue.alabama.gov or 334-242-1380 to obtain the appropriate sign-in information.
810-5-1-.209 Helping Schools Distinctive License Plates. Repealed In compliance with the Red Tape Reduction Act 2013-88, this rule has been reviewed and is being repealed as the rule is not necessary due to the statutory language already being clearly codified in Section 32-6-300, Code of Ala, 1975. A public hearing will be at 1:30 pm on Tuesday, November 9, 2021, via web-conference. To participate in the upcoming web-conference public hearing please contact the Tax Policy and Governmental Affairs Division at Taxpolicy@revenue.alabama.gov or 334-242-1380 to obtain the appropriate sign-in information.
810-6-1-.125.01 Amusement Tax Due On Fees Collected By Golf Courses Open To The Public New, Repealed In accordance with the Red Tape Reduction Act (2013-88), this rule has been reviewed and reformatted to detail the difference between public, private, and quasi public or quasi private golf courses. A public hearing will be at 1:30 pm on Tuesday, November 9, 2021, via web-conference. To participate in the upcoming web-conference public hearing please contact the Tax Policy and Governmental Affairs Division at Taxpolicy@revenue.alabama.gov or 334-242-1380 to obtain the appropriate sign-in information.
810-6-3-.77 Exemption For Certain Purchases By Contractors And Subcontractors In Conjunction With Construction Contracts With Certain Governmental Entities. Amended This rule is being amended to include statutory updates from Acts 2021-298 and 2021-372 related to exempt purchases by contractors and subcontractors for contracts with governmental entities. A public hearing will be at 1:30 pm on Tuesday, November 9, 2021, via web-conference. To participate in the upcoming web-conference public hearing please contact the Tax Policy and Governmental Affairs Division at Taxpolicy@revenue.alabama.gov or 334-242-1380 to obtain the appropriate sign-in information.
810-6-4-.03 Discounts Allowed on Payments of Sales Tax Made Before Delinquency New, Repealed In accordance with the Red Tape Reduction Act 2013-88, this rule is being repealed and readopted to remove antiquated language references and to provide clarification to taxpayers on the calculation of the allowed discount. A public hearing will be at 1:30 pm on Tuesday, November 9, 2021, via web-conference. To participate in the upcoming web-conference public hearing please contact the Tax Policy and Governmental Affairs Division at Taxpolicy@revenue.alabama.gov or 334-242-1380 to obtain the appropriate sign-in information.
810-6-4-.13 Permit Issued To Electric Cooperatives, Telephone Companies and Others Repealed In accordance with the Red Tape Reduction Act 2013-88, this rule has been reviewed and was determined to be no longer necessary due to its duplicative nature of Rule 810-6-4-.14. A public hearing will be at 1:30 pm on Tuesday, November 9, 2021, via web-conference. To participate in the upcoming web-conference public hearing please contact the Tax Policy and Governmental Affairs Division at Taxpolicy@revenue.alabama.gov or 334-242-1380 to obtain the appropriate sign-in information.
810-6-4-.14 Sales And Use Tax Direct Pay Permit Amended In accordance with the Red Tape Reduction Act 2013-88, this rule has been reviewed and is being amended to simplify the procedural language for the direct payment permit process. A public hearing will be at 1:30 pm on Tuesday, November 9, 2021, via web-conference. To participate in the upcoming web-conference public hearing please contact the Tax Policy and Governmental Affairs Division at Taxpolicy@revenue.alabama.gov or 334-242-1380 to obtain the appropriate sign-in information.
810-6-5-.30 Filing And Paying State Sales and Use Taxes and State Administered County and Municipal Sales And Use Taxes On A Quarterly Or Annual Basis New, Repealed This rule has been reviewed and is being repealed and replaced to update the filing frequencies to incorporate the semi-annual filing election for qualifying taxpayers pursuant to the passage of Act 2019-253. A public hearing will be at 1:30 pm on Tuesday, November 9, 2021, via web-conference. To participate in the upcoming web-conference public hearing please contact the Tax Policy and Governmental Affairs Division at Taxpolicy@revenue.alabama.gov or 334-242-1380 to obtain the appropriate sign-in information.

Rules Pending Agency Certification

Rule Number Description Intended Action Substance of Proposed Action Date, Time; Location, Hearing was Held
810-3-36-.01 Electing Pass-Through Entity Returns New This rule is being promulgated to provide taxpayers guidance on the requirements for the filing of an electing pass-through entity return and the payment of tax. A public hearing was held at 1:30 pm on Tuesday, October 5, 2021, via web-conference.
810-4-1-.05 Payment of Ad Valorem Tax using the Fleet Online Registration and Tax (FORT) System New Pursuant to the passage of Act 2019-129, this rule is being promulgated to provide guidance to fleet operators of the use of the Fleet Online Registration and Tax (FORT) System for payment of Ad Valorem Tax A public hearing was held at 1:30 pm on Tuesday, October 5, 2021, via web-conference.
810-4-1-.06 Valuation of Low-Income Housing Tax Credit Multifamily Housing New This Rule is issued pursuant to authority contained in §70-7-49, Code of Ala. 1975, for the purpose of establishing guidelines and procedures for the mass appraisal valuation of multifamily housing developments subject to binding provisions of law, such as those land use restrictive covenants which restrict the rents that may be charged in respect thereof (Rent Restricted Properties), including Low-Income Housing Tax Credit (LIHTC) and HOME Investment Partnership Program (HOME) multifamily housing developments, for property tax purposes. A public hearing was held at 1:30 pm on Tuesday, October 5, 2021, via web-conference.
810-5-1-.200 Fleet Online Registration and Tax (FORT) System New Pursuant to the passage of Act 2019-129, this rule is being promulgated to establish guidelines for the issuance of license plates and registrations to qualifying fleets using the department’s Fleet Online Registration and Tax (FORT) system. A public hearing was held at 1:30 pm on Tuesday, October 5, 2021, via web-conference.
810-5-1-.215 Vintage Vehicle License Plates New, Repealed In accordance with the Red Tape Reduction Act 2013-88, this rule was reviewed and is being repealed and replaced to provide clarifying procedures regarding the proper issuance and usage of license plates for a vintage vehicle. A public hearing was held at 1:30 pm on Tuesday, October 5, 2021, via web-conference.
810-5-1-.236 God Bless America Distinctive License Plates Repealed In compliance with the Red Tape Reduction Act 2013-88, this rule has been reviewed and is being repealed as the rule is not necessary due to the statutory language already being clearly codified in Section 32-6-610, Code of Ala, 1975. A public hearing was held at 1:30 pm on Tuesday, October 5, 2021, via web-conference.
810-5-75-.42 Dealer Designated Agent Records Amended In compliance with the Red Tape Reduction Act 2013-88, this rule has been reviewed and is being amended to change the record retention requirements for designated agents to maintain original title documents from one year to six months. This amendment also establishes standards for the secure disposal of confidential or other sensitive documents. A public hearing was held at 1:30 pm on Tuesday, October 5, 2021, via web-conference.
810-6-1-.04 Radio And Television Antennas And Television Satellite Dishes Amended In compliance of the Red Tape Reduction Act 2013-088, the rule has been reviewed and grammatical and citation updates have been made. A public hearing was held at 1:30 pm on Tuesday, October 5, 2021, via web-conference.
810-6-1-.183 Used and Secondhand Property Repealed In accordance with the Red Tape Reduction Act 2013-88, this rule has been reviewed and it has been determined that the verbiage in this rule could be merged into the Casual Sales rule 810-6-1-.33. A public hearing was held at 1:30 pm on Tuesday, October 5, 2021, via web-conference.
810-6-1-.27 Building Materials New, Repealed In compliance of the Red Tape Reduction Act 2013-088, the rule has been reviewed and grammatical and citation updates have been made. Additionally, Rule 810-6-1-.28 has been incorporated to provide taxpayers with consolidated guidance on building materials. A public hearing was held at 1:30 pm on Tuesday, October 5, 2021, via web-conference.
810-6-1-.28 Building Materials Defined Repealed In compliance of the Red Tape Reduction Act 2013-088, this rule has been reviewed and is being consolidated into Rule 810-6-1-.27 Building Materials. A public hearing was held at 1:30 pm on Tuesday, October 5, 2021, via web-conference.
810-6-1-.33 Casual Sales New, Repealed In accordance with the Red Tape Reduction Act 2013-88, this rule has been reviewed and updated to create a better flow of the information. Additionally, rule 810-6-1-.183 has been incorporated to provide a single rule for similar guidance A public hearing was held at 1:30 pm on Tuesday, October 5, 2021, via web-conference. .
810-6-2-.90.04 Requirements for Certain Marketplace Facilitators and Marketplace Sellers Amended In compliance of the Red Tape Reduction Act 2013-088, the rule has been reviewed and is being updated to correct a code cite reference. A public hearing was held at 1:30 pm on Tuesday, October 5, 2021, via web-conference.
810-6-3-.37.03 Exemption for Certain Items Furnished To Medicaid Recipients Amended In accordance with the Red Tape Reduction Act 2013-88, this rule has been reviewed and citation corrections have been made as well as topic titles added to provide an easier flow for taxpayers. A public hearing was held at 1:30 pm on Tuesday, October 5, 2021, via web-conference.
810-6-5-.02.02 Informational Report For Entities Having A Statutory Exemption From The Payment Of Sales, Use, And Lodgings Taxes Amended Pursuant to Act 2021-374, this rule is being updated to incorporate required filing frequencies for certain statutorily exempt entities. A public hearing was held at 1:30 pm on Tuesday, October 5, 2021, via web-conference.
810-6-5-.36.01 Sales of Prepaid Wireless Service Amended This rule has been reviewed pursuant to the Red Tape Reduction Act 2013-88 and is being amended to provide topic titles and to update code citations. A public hearing was held at 1:30 pm on Tuesday, October 5, 2021, via web-conference.
810-7-1-.09 Procedure for Reporting and Payment of County Tobacco Taxes on Cigarettes and Submission of Tobacco Reports and Registration Requirements Amended In accordance with the Red Tape Reduction Act 2013-88, this rule has been reviewed and determined that an amendment was needed to remove obsolete language and add additional requirements created due to the PACT Act of 2009. A public hearing was held at 1:30 pm on Tuesday, October 5, 2021, via web-conference.
810-8-1-.67 Inspection Fee Floor-Stocks Return Repealed In accordance with the Red Tape Reduction Act 2013-88, This rule has been reviewed and determined to be no longer valid. It is past the statute of limitations to file the inspection fee floor-stocks return. A public hearing was held at 1:30 pm on Tuesday, October 5, 2021, via web-conference.
810-8-6-.01 Determining Gross Value or Market Price of Oil or Gas at the Point of Production Amended Pursuant to the Red Tape Reduction Act 2013-88, this rule has been reviewed and is being amended to remove obsolete language. A public hearing was held at 1:30 pm on Tuesday, October 5, 2021, via web-conference.
810-9-1-.02 Returns New, Repealed Pursuant to the Financial Excise Tax Reform Act 2019-284, this rule has been reviewed and is bring repealed and a new rule adopted to conform with the updated Financial Excise Tax Return requirements. A public hearing was held at 1:30 pm on Tuesday, October 5, 2021, via web-conference.

Rules Pending Final Adoption

Rule Number Description Intended Action Substance of Proposed Action Date, Time; Location, Hearing was Held
810-3-19.1.01 Severance Pay Exemption Amended Pursuant to the passage of Act 2021-240, this rule is being amended to reflect the limit increase on the amount of severance pay that can be exempt from Alabama income tax withholding. Additionally, the rule is being amended to make a technical correction A public hearing was held at 1:30 pm on Tuesday, August 10, 2021, via web-conference. 
810-6-1-.10 Automobile Seatcovers, Top Linings, Vinyl Tops. New, Repealed In accordance with the Red Tape Reduction Act 2013-88, this rule is being amended to simplify the language and consolidate multiple rules with the same topic providing better guidance for taxpayers on services rendered by upholsterers. A public hearing was held at 1:30 pm on Tuesday, August 10, 2021, via web-conference. 
810-6-1-.182 Upholstery Shops Repealed In accordance with the Red Tape Reduction Act 2013-88, the rule has been reviewed and incorporated into Admin. Rule 810-6-1-.10. A public hearing was held at 1:30 pm on Tuesday, August 10, 2021, via web-conference. 
810-6-4-.02.05 Consigned Property Repealed Pursuant to the Red Tape Reduction Act 2013-88, this rule has been reviewed and found to be a duplicate of Rule 810-6-1-.38 and is not necessary. A public hearing was held at 1:30 pm on Tuesday, August 10, 2021, via web-conference. 
810-6-5-.30.01 Filing and Paying State Rental Tax and State Administered County and Municipal Taxes on a Quarterly or Annual Basis Amended This rule is being amended to update the filing frequencies to include semi-annual filing pursuant to the passage of Act 2019-253. A public hearing was held at 1:30 pm on Tuesday, August 10, 2021, via web-conference. 
810-9-1-.07 Extension of Time for Filing a Financial Institution Excise Tax Return New Pursuant to the Financial Excise Tax Reform Act 2019-284, this rule is being promulgated to provide guidance on the deduction of Federal Income Taxes (FIT) paid or accrued during the taxable year in accordance with the taxpayer’s method of accounting used in computing taxable income. A public hearing was held at 1:30 pm on Tuesday, August 10, 2021, via web-conference. 
810-5-1-.442 Farm and Forest Products License Plates Amended This rule has been reviewed and is being amended to incorporate law changes as a result of Legislative Act 2021-337. A public hearing was held at 1:30 pm on Tuesday, August 10, 2021, via web-conference.
810-5-75-.40 Requirements for Names and Signatures on Title Applications, Title Assignments, and Motor Vehicle Registrations Amended In compliance with the Red Tape Reduction Act 2013-88, this rule has been reviewed and is being amended to remove notarization requirements pursuant to the passage of Act 2021-171 and to incorporate references to the department’s agency-wide rule 810-14-1-.37 for electronic signatures. A public hearing was held at 1:30 pm on Tuesday, August 10, 2021, via web-conference.
810-14-1-.23 Procedures for the Use and Acceptance of Electronic Signatures under the Uniform Electronic Transactions Act (UETA) New This rule is being promulgated to provide guidance to taxpayers on the procedures to be used under the Uniform Electronic Transactions Act (UETA) concerning documents submitted to the department with an electronic signature. A public hearing was held at 1:30 pm on Tuesday, August 10, 2021, via web-conference. 
810-3-137-.02 Historic Rehabilitation Tax Credit of 2017 – Availability, Claiming, and Transferability of the Historic Rehabilitation Tax Credit Amended Pursuant to Act 2021-431, the rule is being updated to state that transferees may claim a refund of the HTC credit. This amendment reverses the 11/18/2020 rule amendment regarding the refundability of the transferred credit. A public hearing was held at 1:30 pm on Tuesday, August 10, 2021, via web-conference. 
810-4-1-.17 Assessment Procedures for the Valuation of Public Utility and Railroad Property in the State of Alabama Amended In accordance with the Red Tape Reduction Act 2013-88, this rule has been reviewed and a proposal of amendment has been created. The proposed amendment clarifies the definition of fair market value, specifies the due date of the financial information required to be filed with the Department from all utility and railroad companies, and provides technical changes. A public hearing was held at 1:30 pm on Tuesday, July 6, 2021, via web-conference.
810-5-1-.202 Government License Plate New The proposed new rule is being adopted to provide guidance on the application process and issuance of government license plates issued for motor vehicles owned and used by an agency of the state, county, municipality, or a volunteer fire department. A public hearing was held at 1:30 pm on Tuesday, July 6, 2021, via web-conference.
810-5-1-.212 Undercover License Plates Amended In accordance with the Red Tape Reduction Act 2013-88, this rule is being amended to provide clarity and efficiency for the guidelines local licensing officials and law enforcement agencies must follow to obtain an undercover license plate. A public hearing was held at 1:30 pm on Tuesday, July 6, 2021, via web-conference.
810-5-1-.216 Redesign and Reissue of Stillman College Distinctive License Plates Repealed In compliance with the Red Tape Reduction Act, 2013-88, this rule is being repealed because the rule was specifically enacted as an emergency rule and the information in the rule is no longer relevant. A public hearing was held at 1:30 pm on Tuesday, July 6, 2021, via web-conference.
810-5-1-.217 License Plate Design Specifications New, Repealed In accordance with the Red Tape Reduction Act 2013-88, this rule was reviewed and is being repealed and replaced to provide additional detail on license plate design specifications, and an explanation of distinctive license plate design guidelines. A public hearing was held at 1:30 pm on Tuesday, July 6, 2021, via web-conference.
810-5-1-.233 Proof of Payment Of Federal Heavy Vehicle Use Tax Amended Rule is being amended to further clarify the requirement for payment of Federal Heavy Vehicle Use Tax on qualifying vehicles and to add language providing for the electronic verification of the tax filing and payment. A public hearing was held at 1:30 pm on Tuesday, July 6, 2021, via web-conference.
810-5-12-.06 Buyer’s Identification Cards for Automotive Dismantlers and Parts Recyclers Sales New, Repealed In compliance with the Red Tape Reduction Act 2013-88, the rule has been reviewed and is being replaced to clarify language, combine like subjects, and update procedures related to the requirements for buyer’s identification cards for automotive dismantlers and parts recyclers. A public hearing was held at 1:30 pm on Tuesday, July 6, 2021, via web-conference.
810-5-75-.52 Designated Agent Appointments For Motor Vehicles Amended This rule is being amended to include consolidated language from repealed rule 810-5-75-.65 regarding authority to act as a manufactured home designated agent of the Department A public hearing was held at 1:30 pm on Tuesday, July 6, 2021, via web-conference.
810-5-75-.60 Revocation of License or Authority to Act as Designated Agent or Title Service Provider Amended In compliance with the Red Tape Reduction Act 2013-88 this rule was reviewed and is being amended to clarify procedures and incorporate provisions of rule 810-5-75-.65 to provide centralized guidance on the revocation authority of designated agents. A public hearing was held at 1:30 pm on Tuesday, July 6, 2021, via web-conference.
810-5-75-.65 Appointment, Revocation, and Denial of Authority to Act as a Manufactured Home Designated Agent of the Department Repealed In compliance with the Red Tape Reduction Act 2013-88, the rule has been reviewed and is being repealed and its provisions incorporated into rules 810-5-75-.52 and 810-5-75-.60 to provide centralized guidance on the authority and appointment of designated agents. A public hearing was held at 1:30 pm on Tuesday, July 6, 2021, via web-conference.
810-6-3-.47.02 Private Schools, Sales to New, Repealed In accordance with the Red Tape Reduction Act 2013-88, the rule is being repealed and replaced in order to restructure the original rule and provide a proper flow of like subjects. A public hearing was held at 1:30 pm on Tuesday, July 6, 2021, via web-conference.
810-9-1-.01 Definitions Repealed This rule is being repealed pursuant to the passage of Act 2019-284, the Financial Institution Excise Tax Reform Act of 2019, as the rule and its definitional components are no longer valid. A public hearing was held at 1:30 pm on Tuesday, July 6, 2021, via web-conference.
810-9-1-.03 Refund Claims Repealed This rule is being repealed pursuant to the passage of Act 2019-284, the Financial Institution Excise Tax Reform Act of 2019, as the rule and its refund components are no longer valid. A public hearing was held at 1:30 pm on Tuesday, July 6, 2021, via web-conference.