HB353 Alabama 2010 Session

Summary

Primary Sponsor

Richard Lindsey

Democrat

Session

Regular Session 2010

Title

Alcoholic beverages, sales tax altered, Secs. 28-3-280, 28-3-281, 28-3-282, 28-3-283, 28-3-284 am'd.; Sec. 28-3-286 repealed

Summary

HB353 would restructure the extra state sales tax on ABC Board alcohol sales, setting tiered rates by county or municipality, shifting collection of local taxes, repealing a prior provision, and taking effect January 1, 2011.

What This Bill Does

The bill changes how the additional state sales tax on ABC Store alcohol sales is set and collected: it would be 0.5% in counties with no local tax or a rate below 0.5%, and 1.5% in municipalities with no local tax or a rate below 1.5%; in other areas, the ABC Board would collect the applicable local taxes in the store’s jurisdiction. Revenues would be collected by the Department of Revenue and distributed with costs deducted, giving 25% to counties and 75% to municipalities, with the remaining proceeds distributed to the local governing body where the store is located. The proceeds are intended for local uses (including law enforcement for counties), and authorities would not be allowed to levy additional separate alcohol taxes when these funds are in place. The bill would repeal Section 28-3-286 and establishes rules and regulations to implement these changes, effective January 1, 2011.

Who It Affects

• Local governments (counties and municipalities) where ABC Board stores operate, because their local tax structures determine the applicable rate, sharing of tax proceeds, and restrictions on additional alcohol taxes.
• The Alabama Alcoholic Beverage Control Board, the Department of Revenue, and other local governing bodies, because they would implement, collect, distribute, and regulate the new tax framework and associated rules.

Key Provisions

• Sets the additional state sales tax on ABC Board alcohol sales to 0.5% in counties with no local tax or local rate below 0.5%, and 1.5% in municipalities with no local tax or local rate below 1.5%; in all other cases, the ABC Board would collect the applicable local sales taxes in the store jurisdictions.
• Repeals Section 28-3-286.
• Revenue distribution: after processing costs (up to 5%), 25% to counties and 75% to municipalities of the tax proceeds collected, with the remaining proceeds distributed to the local governing body where the store is located and the tax is collected.
• County funds (from these taxes) are designated for law enforcement purposes, and counties must calculate annual growth for distribution; local governments must follow existing laws or local rules for distributing proceeds.
• Prohibits counties, cities, or municipalities receiving these taxes from levying additional separate taxes or fees on the sale of alcoholic beverages that would be collected by the ABC Board or its stores.
• Notwithstanding the above, the tax collected cannot be double-applied with the local sales tax on the same sale.
• Authorizes the Commissioner of the Department of Revenue and the ABC Board to promulgate necessary rules and regulations to implement these provisions.
• Effective date: January 1, 2011.

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

Subjects

Taxation