Alabama § 45-20-242.27 - Charge for Collection; Disposition of Funds.
Full text of Alabama Code of Alabama § 45-20-242.27 — Charge for Collection; Disposition of Funds., with citation guidance and answers to common questions.
§ 45-20-242.27. Charge for Collection; Disposition of Funds.
The State Department of Revenue shall charge the county for collecting the sales tax levied under this subpart an amount of the percentage of total collections as may be agreed upon by the Commissioner of Revenue and the county commission, but the charge shall not, in any event, exceed five percent of the total amount of the sales tax collected in the county pursuant to this subpart. The charge for collecting the sales tax may be deducted each month from the gross revenues from the sales tax before certification of the amount of the proceeds thereof due the county for that month. The Commissioner of Revenue shall pay into the State Treasury all revenue collected pursuant to this subpart, as the tax is received by the Department of Revenue, and on or before the first day of each successive month, commencing with the month following the month in which the department makes the first collection hereunder the commissioner shall certify to the Comptroller the amount of tax collected pursuant to this subpart and paid into the State Treasury for the benefit of the county during the month immediately preceding the certification. Provided, however, that before certifying the amount of the tax paid into the State Treasury for the benefit of the county during each month, the commissioner may deduct from the tax collected in the month the charge due the department for the collection of the tax for the county. It shall be the duty of the Comptroller to issue a warrant each month payable to the County Treasurer of Covington County in an amount equal to the amount so certified by the Commissioner of Revenue as having been collected for use of the county. All revenues arising from the tax authorized to be levied shall only be allocated and used for the following purposes:
(1) Fifty percent to the county general fund.
(2) Twenty percent to the gasoline tax fund to be divided equally among each road district for roads and bridges maintenance.
(3) Twenty percent to the public highway and traffic fund for roads and bridges maintenance.
(4) Five percent to the Covington County School System.
(5) Five percent to Lurleen B. Wallace Community College.
Source: official Alabama text · Last verified 2026-08-27
Frequently Asked Questions About Alabama § 45-20-242.27
What does Code of Alabama § 45-20-242.27 cover?
Section 45-20-242.27 ("Charge for Collection; Disposition of Funds.") 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 § 45-20-242.27?
A common citation format is "Code of Alabama § 45-20-242.27" (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 § 45-20-242.27 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.