Alabama § 40-1-49 - Suspension of Collection When Costs Exceed Amounts Collected.
Full text of Alabama Code of Alabama § 40-1-49 — Suspension of Collection When Costs Exceed Amounts Collected., with citation guidance and answers to common questions.
§ 40-1-49. Suspension of Collection When Costs Exceed Amounts Collected.
(a) The Department of Revenue, by administrative rule, shall suspend the collection of a tax or fee which it is authorized to collect when the cost of administering the collection of such tax or fee has exceeded the total amount of the tax or fee collected for each of the previous three fiscal years.
Should it be determined that the suspension of a tax or fee collection would result in reduced local revenues, the department shall notify the affected localities prior to filing a notice, pursuant to the Administrative Procedure Act, to promulgate an administrative rule to suspend the tax or fee.
(b) Notwithstanding subsection (a), the department shall not suspend the collection of a tax or fee in any of the following cases:
(1) If such tax or fee is mandated by federal law or regulation.
(2) If discontinuing the collection of such tax or fee would result in reduced federal funding received from the federal government that exceeds the state costs of collecting the tax or fee.
(3) If discontinuing the collection of a tax or fee would result in reduced state and local revenues that exceeds the state costs of collecting the tax or fee.
(4) If suspending collection of the tax or fee would negatively affect the public health, safety, or welfare.
(c) No administrative rule promulgated pursuant to this section shall be applied retroactively.
(d) In accordance with Sections 41-22-5.1 and 41-22-5.2, also known as the Red Tape Reduction Act, any rule promulgated pursuant to this section shall be reviewed not less than every five years. Should it be determined that the administrative cost of collecting a tax or fee no longer exceeds the total amount of tax or fee that could be collected, any corresponding rule suspending the collection of the tax or fee shall be repealed by the department.
If such rule is repealed, no tax or fee shall be due for any periods for which the rule was in effect.
Source: official Alabama text · Last verified 2026-08-27
Frequently Asked Questions About Alabama § 40-1-49
What does Code of Alabama § 40-1-49 cover?
Section 40-1-49 ("Suspension of Collection When Costs Exceed Amounts Collected.") is part of the Code of Alabama, the codified statutory law of Alabama. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Alabama § 40-1-49?
A common citation format is "Code of Alabama § 40-1-49" (Alabama). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Alabama law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Alabama official source linked on this page or consult a licensed Alabama attorney.
How does Alabama § 40-1-49 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Alabama can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Alabama.