Title
AN ORDINANCE AMENDING CHAPTER 5, ARTICLE II OF THE CODE OF ORDINANCES FOR THE CITY OF FOLEY, ALABAMA ENTITLED "SALES TAX" TO REQUIRE ELECTRONIC FILING AND PAYMENT OF TAXES ONLINE
Summary
DESCRIPTION OF TOPIC: AN ORDINANCE TO REQUIRE PAYMENT OF TAX TO THE ONLINE "MAT" SYSTEM THROUGH ALABAMA DEPARTMENT OF REVENUE.
SOURCE OF FUNDING:
Please provide the amount requested: __$ 0________
Is this a budgeted item? Yes /No
Please provide the budgeted amount: $____N/A_________ Account No. _____N/A______________________
If budgeted, is this a capital purchase, capital project, or special fund? ___N/A______________________
Was this item included in the Fiscal Year Capital Projects Plan? Yes/No
If yes, please provide the amount included in Capital Projects Plan: $_0__________
Body
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FOLEY, ALABAMA, THAT CHAPTER 5, ARTICLE II OF THE CODE OF ORDINANCES FOR THE CITY OF FOLEY IS HEREBY AMENDED AS FOLLOWS:
That a new section entitled, “Electronic Filing and Payment of Tax Returns,” be added as follows:
Sec 5-56 - Electronic filing and payment of tax returns.
a. Electronic filing required. To increase the accuracy and efficiency of reporting and collection the taxes levied in Sections 5-50 through 5-55 of this Article - i.e. sales, use, lease and lodging - all taxpayers shall file said tax reports electronically through the state filing and remittance program known as My Alabama Taxes (MAT).
b. Electronic payment required. All taxpayers whose electronically filed returns show a payment due in the amount of seven hundred fifty dollars ($750.00) or more shall make the payment electronically. After the seven hundred fifty dollar ($750.00) threshold is met for the first time, all subsequent payments must be made electronically regardless of the amount.
c. Electronic filing and signature requirements.
1. The tax return consists of the electronic transmission and electronic data, and any and all supporting documentation as required by rule, regulation or policy.
2. Electronic filing signature requirements shall be as set forth by the State of Alabama, Department of Revenue Rules and Regulations, and/or other applicable law, rule, regulation or policy.
d. Hardship. The Revenue Officer/Director may relieve a taxpayer from the electronic filing mandate upon a showing of undue hardship. For the purpose of this section, “undue hardship” means special circumstances exist that make it unreasonable for the taxpayers to file electronically. “Undue hardship” also includes any exemption recognized by the Unites States Internal Revenue Service Regulations promulgated pursuant to section 6011(3)3 of the Internal Revenue Code. To qualify for a hardship exemption:
The taxpayer shall file a request for the relief under this section with the Revenue Officer/Director within thirty (30) days of the time the return is due.
The Revenue Officer/Director is authorized to prescribe application forms, request documents and other information as may be required to make a decision on the application.
The decision of the Revenue Officer/Director shall be made within thirty (30) days of the receipt of the completed application. The decision of the Revenue Officer/Director is final.
e. Due date for filing electronic returns and payments. The due date for filing electronic returns for city taxes shall be the same date applicable to paper tax forms and payments. The date and time the taxpayer filed the tax return through the MAT system shall be the date and time used to determine the timely filing of an electronic return.
2. That Section 5-52 be amended and restated as follows:
Sec. 5-52 State statutes and regulations applicable, penalties for failure to pay tax.
The taxes levied by sections 5-50 and 5-51 shall be subject to all definitions, exceptions, exemptions, proceedings, requirements, provisions, rules and regulations promulgated under the Alabama Administrative Procedure Act, direct pay permit and drive-out certificate procedures, statute of limitation, penalties, fines, punishments, and deductions that are applicable to the taxes levied by the state sales tax statutes, except where inapplicable or where herein otherwise provided, including all provisions of the state sales tax statutes for enforcement and collection of taxes.
Any person who fails to pay the tax levied in this division within the time required by this division shall pay, in addition to the tax, a penalty of ten percent (10%) of the amount of tax due, or a fraction thereof, from the date at which the tax levied in this division became due and payable. Such penalty shall be assessed and collected as part of the tax. The City, if a good and sufficient reason is shown, may waive or remit the ten percent penalty or a portion thereof.
3. That Section 5-55 be amended and restated as follows:
Sec. 5-55. State statutes and regulations applicable, penalties for failure to pay tax.
The taxes levied by sections 5-53 and 5-54 shall be subject to all definitions, exceptions, exemptions, proceedings, requirements, provisions, rules and regulations promulgated under the Alabama Administrative Procedure Act, direct pay permit and drive-out certificate procedures, statute of limitation, penalties, fines, punishments, and deductions that are applicable to the taxes levied by the state use tax statutes, except where inapplicable or where herein otherwise provided, including all provisions of the state use tax statutes for enforcement and collection of taxes.
Any person who fails to pay the tax levied in this division within the time required by this division shall pay, in addition to the tax, a penalty of ten percent (10%) of the amount of tax due, or a fraction thereof, from the date at which the tax levied in this division became due and payable. Such penalty shall be assessed and collected as part of the tax. The City, if a good and sufficient reason is shown, may waive or remit the ten percent penalty or a portion thereof.
4. That this Ordinance shall become effective on March 1, 2021 following its adoption and publication as required by law.