HB97 Alabama 2014 Session

Under existing law, a tax or fee is required to be collected regardless of whether the administrative cost associated with the collection of the tax or fee exceeds the actual amount of the tax or fee collected.

This bill would require the Department of Revenue, by administrative rule, to suspend the collection of a tax or fee when the administrative costs of collecting the tax or fee exceed the collection amount of the tax or fee for each of the previous three fiscal years.

This bill would prohibit the department from suspending the collection of the a tax or fee if the tax or fee is mandated by federal law or regulation, if suspending the collection of the tax or fee would result in reduced funding received from the federal government that exceeds the state costs of collecting the tax or fee, if suspending the collection of the tax or fee would result in a reduction in collection of local taxes or fees that exceeds the state costs of collecting the tax or fee, or if suspending collection would negatively affect the public health, safety, or welfare.

This bill would prohibit the department from applying a rule suspending the collection of a tax or fee retroactively.

This bill would provide for periodic review of all rules suspending payment of a tax or fee.

To add Section 40-1-49 to the Code of Alabama 1975; to require the Department of Revenue, by administrative rule, to suspend collection of certain taxes or fees if the administrative cost of collection is more than the amount collected; to provide exceptions; to provide that no administrative rule suspending collection of a tax or fee shall be applied retroactively; and providing for periodic review of such rules.