In 2013, the Alabama Legislature approved House Bill 101—The Red Tape Reduction Act—which was later signed into law. Five years later, this law is still working to reduce rules and regulations for the state’s job creators.
This legislation, which was NFIB-backed and sponsored by Rep. April Weaver and Sen. Jabo Waggoner, requires state agencies to perform a fiscal impact on the costs to small businesses for implementation of a new state rule or regulation. This economic impact statement must then be filed with the Joint Committee on Administrative Regulation Review. Additionally, under this law, state agencies are required to review their existing rules and regulations every five years and eliminate the ones that are unnecessary.
So, as a result of the Red Tape Reduction Act, the Alabama Department of Revenue recently announced that it would hold a hearing about repealing an old regulation that concern a property tax break for senior citizens in Baldwin County. The tax break is still available to qualifying individuals—property taxes are frozen for taxpayers 65 and older who have lived in their homes for at least 10 years—but the rule has since been updated because the original rule referenced dates that are no longer valid. But with both rules on the books, it causes confusion. Eliminating the old rule will not only meet the requirements of the Red Tape Reduction Act, but it will also provide clarity for taxpayers.
Two other proposed rules were also addressed during this hearing, reported Yellowhammer News.
One rule clarifies the procedure for tax lien auctions, tax lien sales, and collecting delinquent property taxes. It would also require county tax officials to decide which tax collection method to use no later than Oct. 1 when property taxes are due.
The second rule would amend a regulation that concerns manufacturers and salespeople of tobacco by requiring that salespeople be informed about the illegality of transporting unstamped tobacco between wholesalers in their own vehicles.