Alabama. Dept. of Revenue

Sources:

Acts 1896-1897, No. 204.

Acts 1907, No. 337.

Acts 1915, No. 464, p. 386.

Acts 1919, No. 328.

Acts 1935, No. 194, p. 256.

Acts 1939, No. 4, p. 1.

Code 1940, T. 51, Sec. 125.

Ala. Dept. of Revenue, Annual Report, 1987.

Ala. Government Manual, 1982.

Ala. Official and Statistical Register, 1979.

General Laws, 1939-1940, No. 4, 1949 Feb. 1.

Owen, Thomas.

The Dept. of Revenue supervises the collection of all taxes assigned to it for collection. The programs/functions of the Dept. are administered by the Commissioner of Revenue. (Ala. Government Manual, 1982)

The Commissioner is appointed by the Governor. To qualify for appointment, one must be a qualified elector of good moral character over thirty years of age, and have been a citizen of Ala. for at least five years. The Commissioner of Revenue must have a knowledge of taxation and may not be financially interested in any public service corporation. Salary for the office is determined by the Governor within limits set by statute. The Commissioner serves at the pleasure of the Governor. (Ala. Government Manual, 1982).

The Dept. of Revenue was organized primarily for the purpose of establishing a more equitable and impartial system by which the citizens of Ala. could be taxed. The state's revenue laws were ineffectively and quite inequitably administered (primarily because such administration had previously been left to the counties; therefore, it was expedient to create an agency which would be granted the constitutional authority to reevaluate and reform the state's tax system, if necessary (Owen, p. 542).

In 1897, the State Tax Commissioner was created. The "originating act" of 1897 set forth that the Commissioner was to prepare and submit to the Auditor assessment and revenue bills or such amendments to existing tax laws as he (Commissioner) may have deemed necessary and/or expedient. Furthermore, the act stated that it shall have been the duty of the State Tax Commissioner to work under the supervision of the Auditor, as other tax officers were then required to do. Additionally, the Commissioner was also legally authorized/empowered to direct and supervise the actions of various clerks and deputies, as well as such county tax commissioners as had been theretofore placed under his control (Act 1896-1897, No. 204, Sec. 1-4).

Additionally, the Commissioner was legally authorized to aid the revenue officers of the state in the collection of escaped, delinquent, back taxes and licenses, in discovering and prosecuting by civil and criminal penalties and costs, all evasions or violations of the revenue laws of this state, and in the perfecting of all tax titles made under the laws of the state. Furthermore, the Commissioner was legally empowered to scrutinize the records and stubs kept in the office of the Judge of Probate, and if it shall have been reported to any county commissioner that any person(s), firms, or corporations had failed or refused to take out licenses as required by law, said Commissioner was required to institute criminal proceedings against such delinquent before any court having jurisdiction of the offense. To facilitate a more efficient expedition of the Commissioner's powers, duties, and functions, county and municipal judges of probate, sheriffs (and deputies), justices of the peace, tax collectors, and tax assessors were thereby legally bound to cooperate with the Commissioner, to allow him, as well as his legally authorized subordinates, full and free access to all records, books, affidavits, assessment lists and papers in their offices (Acts 1896-1897, Sec. 5-8).

In 1907, the State Tax Commissioner was legally eradicated and the State Tax Commission was established. The newly authorized agency was composed of three Commissioners, a chairman and two associate commissioners, all of which were appointed by the Governor. Furthermore, the "originating act" established the terms of office for the commissioners as well as such qualifications as were necessary for appointment consideration. Additionally, the "originating act" contained provisions pertaining to compensation, oaths of office, regular meetings, and quorums for said meetings (Acts 1907, No. 337, Sec. 1-6).

The State Tax Commission was legally authorized to exercise general and complete supervision over the assessment and collection of taxes and the enforcement of the tax laws of the state, to confer with, advise, and direct all assessors, collectors of state and county taxes and county tax commissioners as to their duty under the laws of the state, to direct actions, prosecutions, and proceedings to be instituted to enforce the laws of the state relating to penalties, forfeiture, liabilities, and punishments of public officers and officers or agents of corporations, companies, associations, or persons for failure/neglect to comply with the provisions of the law governing the return, assessment, and taxation of property privileges and franchises in the state, and to cause complaints, information, actions, or prosections to be made or instituted against any tax assessor or tax collector for official miconduct or neglect of duty.

Furthermore, the Commission was empowered to require county or circuit solicitors and the Attorney General of the state to commence and prosecute actions, proceedings and prosecutions for penalties, forfeitures, impeachments, and punishments for violation(s) of the laws of the state in respect to the assessment and collection of taxes, to require any county officer or other public officer in the state to report information as to the assessment of property, collection of taxes, receipts of licenses, and other sources, methods of taxation, values of franchises or intangible property or assets subject to taxation and such other information as may have been needed in the work of the Commission, to require all corporate entities to furnish information concerning their capital, funded or otherwise, current assets, liabilities, value of franchises, value of property, earnings, operating and other expenses, bonds, deeds, conduct of business, and all other facts, records, papers, documents, or other information pertinent to the expedition and/or administration of the Commission's duties/functions and to conduct all matters and transact all business conducive to the realization of the goals established by the "orginating act" (Acts 1907, No. 337, Sec. 1-17).

In 1915, the State Tax Commission was legally eradicated and the State Board of Equilization was established. The newly authorized agency was composed of a chairman and two associate members all of which were appointed by the Governor. Furthermore, the "originating act" established the terms of office for the board members as well as such qualifications as were necessary for appointment consideration. Additionally, the "originating act" contained provisions pertaining to compensation, oaths of office, bonds, regular meetings, and quorums for said meetings. Essentially, the legally authorized and allocated powers/duties of the newly created agency were consistent with those of the previous agency; therefore, the actual changes were in the "letter of the law," the "spirit" remained constant (Acts 1915, No. 464, Sec. 1-292).

In 1919, the State Board of Equlization was legally eradicted and the State Tax Commission restored to its previous position. The newly authorized agency assumed all of its previously expedited duties/functions as well as those vacated by the defunct Board of Equalization. Furthermore, the Commission was legally empowered to issue automobile licenses, assess gross receipts taxes on freight line equipment, and collect a tax on carbonic acid gas; the collection of tax on carbonic acid gas was repealed by the 1963 Legislature effective 1966 Oct. 1 (Acts 1919, No. 328, Sec. 156).

In 1939, the State Tax Commission was legally eradicated and Dept. of Revenue established. All rights, duties, powers, and authorities then vested in the State Tax Commission and in the members thereof were transferred to and vested in the newly created agency (Acts 1939, No. 4, Sec. 6).

Currently, the Commissioner of Revenue supervises, directs, and controls the Dept. of Revenue, appoints legal counsel and other personnel, provides for keeping full and complete records of all state revenues, and assesses the property of all public utilities. The Commissioner investigates the work of all local tax officials and certifies tax assessment books. On request of any city or town, the Commissioner collects privilege license taxes levied by the city or town when the levy parallels the state levy of sales and use taxes, although the rate of taxation may differ. The Commissioner institutes suits and court actions relating to taxes, and is responsible for preparation of an annual report to the Governor on fiscal matters. The Commissioner also serves as State Land Commissioner ex-officio, and as a member of the Public School Corporation, Ala. State Bridge Corporation, and Ala. Education Authority. In administering the Dept. of Revenue, the Commissioner is assisted by an Assistant Commissioner, a Deputy Commissioner, and an Executive Assistant (Ala. Government Manual, 1982).

The Dept. receives annual appropriations from the Legislature which are derived from assessments against each tax collected by the Dept. (Ala. Government Manual, 1982).

The Code of Ala. 1940 as well as the Acts of 1935 made specific concessions regarding the department's employment of staff personnel. The Acts stated that the Dept. of Revenue may employ a secretary and such other persons as experts, engineers, stenographers, clerks, or assistants as may be necessary for the performance of the duties which may be required of said department subject to the provisions of the merit system. The Commissioner utilizing these concepts has created several division which have been deemed relevant to the administration of Ala.'s tax laws (Acts 1935, No. 194, p. 256; Code 1940, T.51, Sec. 125).

Administrative divisions of the Dept. of Finance.

Administrative Law Division. The Administrative Law Division was created in September 1983 to provide an opportunity for all parties that would be directly affected by any proposed action of the department to be heard at a formal hearing before an impartial administrative law judge. The proceedings encompass disputed preliminary assessments; contested refund petitions; the granting, renewal ore revocation of licenses, certificates of title, etc., and declarator rulings on the applicability of regulations and statues. (1987 Annual Report).

Budget and Administrative Management Division. The Budget and Administrative Management Division was created to increase the effectiveness of the budgeting and accounting functions, in addition to improving overall administrative service provided to the Department of Revenue. (1987 Annual Report).

Internal Audit Division. This division performs financial, operational and compliance audits of all departmental functions and reports directly to the deputy commissioner. (1987 Annual Report).

Legal Division. The Legal Division acts as a legal advisor to the commissioner and the various divisions of the Department of Revenue with respect to legal questions which arise in administration of Alabama's revenue laws. Additionally, the division handles tax litigation involving the department in the carious state and federal courts. The attorneys, acting in the capacity of assistant attorneys general, write official and informal opions concerning tax matters for the attorney general. (1987 Annual Report).

Resources Management Division. The Resources Management Division primarily supports all divisions of the Alabama Department of Revenue by insuring that necessary and qualified personnel are employed by the department. The division works within the framework of the state merit system to provide this support. (1987 Annual Report).

Revenue Information Systems Division. Data processing services to all Revenue divisions are provided by the various sections of the Revenue Information Systems Division. (1987 Annual Report).

Program divisions of the Dept. of Revenue:

Ad Valorem Tax Division.

Collections Services Division.

Income Tax Division.

Motor Vehicle Division.

Natural Resources and License Tax Division.

Sales and Use Tax Division.

Special Investigations Unit.

From the description of Agency history record. (Unknown). WorldCat record id: 145407290