(1) Act 2014-331 was signed into law on April 7, 2014 and becomes effective on July 1, 2014. In accordance with Section 40-1-49, Code of Ala. 1975, as created by this Act, the Department of Revenue, by administrative rule, shall suspend the collection of a tax or fee when the cost of administering the collection of the tax exceeds the total amount of the tax collected for the previous three fiscal years.
- (a) Sections 40-12-128 through 40-12-130 provides for a privilege license tax on iron ore mining within Alabama.
- (b) Based upon a review of the collections of the Iron Ore Severance Tax for fiscal years 2011-2013, the annual administrative costs exceed the three-year average revenue collections for this tax. Therefore, this tax meets the suspension requirements established in the Act.
- (c) Through the adoption of this rule, the Department of Revenue exercises its authority to suspend the collection of the Iron Ore Severance Tax levied in Sections 40-12-128 through 40-12-130.
- (d) The effective date of this suspension shall be October 1, 2014.
- (e) The September 2014 return which is due by October 20, 2014 shall be the final return submitted for the iron ore severance tax.
- (f) Upon implementation of this rule, the Department shall notify all affected parties in writing.
Author: Alisa Johnson
Statutory Authority: Code of Ala. 1975, §§40-2A-7(a)(5); 40-1-49.
History: New Rule: Filed August 27, 2014; effective October 1, 2014.