HB97 Alabama 2014 Session

Summary

Primary Sponsor

Jim Patterson

Republican

Co-Sponsors

Richard BaughnDan WilliamsKen JohnsonMicky HammonMack N. ButlerAllen FarleyMary Sue McClurkinMac ButtramSteve HurstJoe FaustMike HillAllen TreadawaySteve McMillanHoward SanderfordJack WilliamsHarry ShiverK.L. BrownAlan BakerKurt WallaceWayne JohnsonWilliam RobertsDavid StandridgeJohn MerrillDickie DrakeJim McClendonMark TuggleDonnie ChesteenLynn GreerMike HubbardRandall SheddWes LongBarry MooreBecky NordgrenPaul Beckman

Session

Regular Session 2014

Title

Revenue Department, taxes and fees, suspension by administrative rule when cost of collection is higher than amount collected, periodic review, Sec. 40-1-49 added

Summary

HB97 lets the Department of Revenue suspend collection of certain taxes or fees if the cost of collecting them is higher than what is collected, with safeguards and periodic reviews.

What This Bill Does

It authorizes the Department of Revenue to halt collecting a tax or fee by administrative rule when administration costs exceed the amount collected in the previous three fiscal years. It sets exceptions: suspension cannot occur if federal law requires the collection, would reduce federal funding beyond its costs, would reduce state/local revenues beyond its costs, or would negatively affect public health, safety, or welfare. If suspending would reduce local revenues, localities must be notified before the rule is filed. The rule cannot be retroactive and must be reviewed at least every five years; if collection costs no longer exceed potential collection, the rule must be repealed, and no tax or fee would be due for periods when the rule was in effect.

Who It Affects

• Department of Revenue: gains authority to suspend collections via administrative rules and to repeal those suspensions when appropriate.
• Local governments/localities: could lose revenue if a suspension reduces local receipts; must be notified before the suspension rule is filed.
• Taxpayers and fee payers: may temporarily avoid paying certain taxes/fees during the suspension; no tax/fee would be due for periods covered by an active suspension rule, and those periods remain non-pursuable if the rule is later repealed.

Key Provisions

• Adds Section 40-1-49 establishing that DoR may suspend collection of a tax or fee when administrative costs exceed the amount collected for the prior three fiscal years.
• Exceptions prohibit suspension if federal law requires collection, would reduce federal funding beyond state costs, would reduce state/local revenues beyond state costs, or would negatively affect public health, safety, or welfare.
• If the suspension could reduce local revenues, the DoR must notify affected localities before filing the rule.
• No administrative rule can be retroactive.
• Rules under this section must be reviewed at least every five years under the Red Tape Reduction Act; if collection costs no longer exceed potential collection, the rule must be repealed.
• If a rule is repealed, no tax or fee is due for any periods during which the rule was in effect.
• Effective date is the first day of the third month after passage/approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Revenue Department