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Bill Summary · HB 505

Summary of House Bill 505 (HB 505)

Overview

House Bill 505, titled "Alabama Tax Tribunal, judge compensation revised, period of time to file an appeal to tribunal increased," was introduced on April 1, 2025, and has since been enacted. The bill primarily aims to enhance the operational efficiency of the Alabama Tax Tribunal by revising the compensation for judges and extending the appeal period for taxpayers.

Main Purpose and Intent

The primary intent of HB 505 is to:
- Revise compensation for judges of the Alabama Tax Tribunal to align with that of administrative law judges.
- Extend the timeframe for taxpayers to appeal final tax assessments from 30 days to 60 days, thereby providing them with additional time to prepare their cases.

Key Provisions

  1. Increased Appeal Period:

    • The bill extends the time frame for taxpayers to appeal a final tax assessment to the Alabama Tax Tribunal or circuit court from 30 days to 60 days.

  2. Revised Compensation for Judges:

    • The Chief Judge of the Alabama Tax Tribunal will receive a salary equivalent to the top of the pay range assigned to the Chief Administrative Law Judge, which is an increase from the previous top pay scale within Pay Grade 88.
    • Associate judges will have their compensation adjusted to a maximum of $12,600 annually, changing their pay grade from within Pay Grade 84 to align with the pay range for administrative law judges.

  3. Fiscal Impact:

    • The enactment of this bill is expected to increase the obligations of the Alabama Tax Tribunal Fund by an estimated $17,000 annually for the Chief Judge's salary and an additional amount for associate judges based on the new pay structure.

Affected Parties

  • Taxpayers: The extension of the appeal period benefits taxpayers by allowing them more time to contest tax assessments.
  • Judges of the Alabama Tax Tribunal: The bill directly impacts the compensation structure for both the Chief Judge and associate judges, potentially attracting qualified candidates to these positions.

Procedural Timeline

  • April 1, 2025: Bill introduced and referred to the House Committee on State Government.
  • April 8, 2025: Reported out of committee and read for the second time.
  • April 15, 2025: Passed in the House after a third reading.
  • April 17, 2025: Read in the Senate and referred to the Senate Committee on Fiscal Responsibility and Economic Development.
  • May 7, 2025: Enrolled and sent for signature.
  • May 14, 2025: Enacted into law.

Conclusion

House Bill 505 represents a significant change in the operational framework of the Alabama Tax Tribunal, enhancing the rights of taxpayers while ensuring that judges are compensated fairly. This legislation aims to improve the efficiency of tax appeals and the overall functioning of the tribunal.

Compiled from official sources — confirm details with the bill’s official record.

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