MONTGOMERY, Ala. (AP) -- The Alabama Legislature has voted to allow the state tax collection agency to suspend collection of any tax where the cost of collection exceeds the revenue generated for three years.
The Senate gave final approval to the bill in a 25-1 vote Tuesday. The bill, sponsored by Republican Rep. Jim Patterson of Meridianville, cleared the House earlier in the session and now goes to the governor for signing into law.
The state Revenue Department sought the bill. It said the severance taxes on iron ore and the playing card tax generate less than $100,000 combined annually, but the cost of collecting them totals about $115,000.
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