WIREGRASS, Ala. (WDHN) — At least 13 municipalities here in the Wiregrass will not be able to collect taxes and fees from areas outside their towns or city limits.

According to a 2021 reporting law, municipalities throughout the state of Alabama had to report annual fees and tax revenue collected within the police jurisdictions and the services they provided.

If an area failed to report these collections by March 1, 2022, then the municipality is not allowed to collect any more taxes or fees from outside the police jurisdiction, which could hinder services, such as police protection to outside areas.

The department has received the letter from the Examiner of Public Accounts and is in the beginning process of notifying the municipalities that were deemed to be noncompliant with the requirements of Act 2021-297. The act states noncompliant municipalities “may not collect any further license revenue or any other taxes or fees in the police jurisdiction outside the corporate limits.” §11-51-91(c). The Examiners and not ALDOR make the determination regarding compliance under the Act.

Statement from Alabama Department of Revenue

The Examiner of Public Accounts says that the following areas in the Wiregrass did not file or incorrectly filed their reports:

  • Ariton
  • Clayhatchee
  • Cottonwood
  • Columbia
  • Daleville
  • Grimes
  • Headland
  • Napier Field
  • Newton
  • Newville
  • Pinckard
  • Taylor

New Brockton and Kinston filed their collection for 2022 but didn’t in 2021, so the Examiner of Public Accounts says they are working with them to get the 2021 collection filed.