Opinion ID: 3169959
Heading Depth: 2
Heading Rank: 3

Heading: Alabama’s Remedies for Taxpayers

Text: Before the TIA bar applies, however, the state must meet “certain minimal procedural criteria” in providing a “plain, speedy, and efficient” remedy. See Grace Brethren Church, 457 U.S. at 411, 102 S. Ct. at 2509 (quotation marks omitted). In particular, the remedy must provide the taxpayer with a “full hearing and judicial determination at which she may raise any and all constitutional 12 Case: 15-12124 Date Filed: 01/15/2016 Page: 13 of 17 objections to the tax.” Id. (quotation marks omitted). The state remedy, however, need not “be the best remedy available or even equal to or better than the remedy which might be available in the federal courts.” Bland v. McHann, 463 F.2d 21, 29 (5th Cir. 1972).5 At the time of Kelly’s Alabama tax assessment, state law provided that a taxpayer had the right to appeal a final assessment to either the Administrative Law Division or to the state’s circuit courts within 30 days of the final assessment date. See Ala. Code § 40-2A-7(b)(5) (2013).6 Because Alabama law allows taxpayers a right to appeal an assessment to the circuit courts within 30 days of the assessment, it provides a plain, speedy, and efficient remedy within the meaning of the TIA. Lasker Boiler & Eng’g Corp. v. Hamm, 328 F.2d 429, 429-30 (5th Cir. 1964). In Lasker, Alabama’s appeals process was deemed sufficient even though the plaintiff’s attempt to appeal a tax assessment under state law was dismissed as untimely because the taxpayer appealed on the 31st day. See id. In addition, under Alabama law, taxpayers may petition for a refund of taxes paid to the state and may appeal the denial of such petitions and raise federal 5 The Supreme Court has found “no significant difference” between the TIA’s requirement for a “plain, speedy and efficient” state remedy and comity’s requirement for a “plain, adequate and complete” state remedy. See McNary, 454 U.S. at 116 n.8, 102 S. Ct. at 186 n.8. 6 Effective October 1, 2014, after Kelly filed her action in August 2014, the Alabama legislature amended the relevant code provisions to create an Alabama Tax Tribunal to replace the Administrative Law Division in hearing appeals from a final assessment by the ADR. See 2014 Alabama Laws 378 (Act 2014-146). 13 Case: 15-12124 Date Filed: 01/15/2016 Page: 14 of 17 constitutional challenges to state taxes in the state courts. See, e.g., AT&T Corp. v. Surtees, 953 So. 2d 1240, 1243-46 (Ala. Civ. App. 2006) (overturning the trial court’s dismissal of the plaintiff’s constitutional claims against an Alabama state tax assessment); see also Ala. Code § 40-2A-7(b)(4)-(5). A state scheme requiring a taxpayer to pay the contested tax and then seek a refund through state administrative and judicial procedures was deemed sufficient by the Supreme Court. See Roswell v. LaSalle Nat’l Bank, 450 U.S. 503, 522-28, 101 S. Ct. 1221, 1233-37 (1981). As the district court noted, a taxpayer also may file a declaratory judgment action in state court pursuant to the Alabama Declaratory Judgment Act and the Alabama Administrative Procedure Act. See Ala. Code §§ 6-6-220-232, 41-22-10; Rabren v. Mudd, 234 So. 2d 549, 285 Ala. 531 (Ala. 1970) (involving taxpayer’s declaratory judgment action against the ADR and two agents asserting that the plaintiff was not domiciled in Alabama and thus not required to file an Alabama income tax return); Gibbs v. Cochran, 198 So. 2d 607, 608, 281 Ala. 22, 25 (Ala. 1967) (stating that “controversies touching the legality of acts of public officials or public agencies” are properly brought in declaratory judgment actions). 14 Case: 15-12124 Date Filed: 01/15/2016 Page: 15 of 17