SB337 Alabama 2011 Session

Summary

Primary Sponsor

Bryan Taylor

Republican

Session

Regular Session 2011

Title

Tax revenue, distribution altered, sales tax discount and use tax discount, distribution altered, Secs. 40-23-35, 40-23-77 am'd.

Summary

SB337 changes how sales and use tax discounts are distributed, directing money to counties, welfare programs, parks, foster care, coastal programs, and the education fund.

What This Bill Does

It rewrites the distribution rules for the Sales Tax Discount and the Use Tax Discount. After paying Department of Revenue operating costs and replacing certain lost levies, the remaining discount revenue is allocated to specific programs: a fixed amount to each of the 67 counties, funds to the Department of Human Resources (including a foster care program), and funds to the Department of Conservation and Natural Resources for state parks and related aims (with a minimum park funding level established and adjusted over time). The act also creates transfers to the General Fund and to the Education Trust Fund, and sets how increases in receipts from the discounts are split among DNCR, HR, and other funds (including Game and Fish, Seafoods, and Coastal Programs), with certain year-specific exceptions. In addition, it sets the seller discount at up to 3% and specifies how those increases are allocated, including temporary redirects in 2012-2013.

Who It Affects

• 67 Alabama counties, which receive a portion of the discount revenue ($378,000 total initially) and share it for local health and extension services.
• Department of Human Resources, which receives funds for general welfare purposes and a dedicated foster children program.
• Department of Conservation and Natural Resources, which receives funds for state parks capital outlay, repairs, and maintenance, plus allocations to the Game and Fish Fund, Seafoods Fund, and Coastal Programs.
• State General Fund, which receives portions of the increased receipts from the discount caps (with some years redirecting funds away from targeted programs).
• Education Trust Fund, which receives the remaining proceeds after other specified distributions.

Key Provisions

• Section 40-23-35(a): Administrative priority uses a portion of discount proceeds to cover Department of Revenue salaries and operations and to replace lost mill levies for schools and soldiers' relief; remaining funds are allocated after these priorities are met.
• Section 40-23-35(b)(1)-(4): Distributions of remaining discount proceeds include $378,000 to the 67 counties, $1,322,000 to the Department of Human Resources, and funds to the Department of Conservation and Natural Resources (DNCR) for parks-related capital outlay and maintenance, with a mechanism for debt service and a dedicated $1,000,000 to foster children started earlier in the timeline; beginning 2002, a minimum of $5,000,000 is directed to DNCR for parks (subject to adjustments), with 2012-2013 having a special provision.
• Section 40-23-35(b)(2)-(3): The increase in receipts due to the caps on discounts is allocated to the General Fund and to DNCR for parks funding, with specific annual formulas and debt service priorities, and with constraints on funds for the Coastal Programs.
• Section 40-23-35(c)-(e): Half of county-distributed funds go to health/extension services (population-based share and equal share), and funds are also used for general welfare programs and the state-administered food stamp program, with administration funds redirected to the Food Stamp Trust Fund and capped administrative costs.
• Section 40-23-77: The seller discount is set at up to 3% with Governor-authorized rules; increases in receipts due to maximum discounts are allocated to DNCR (Game and Fish Fund, Seafoods Fund), Coastal Programs, and the Department of Human Resources (foster care), with remaining funds going to the General Fund and the Education Trust Fund; in 2012-2013 the Coastal Programs' $1,000,000 share is redirected to the General Fund.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation