HB109 Alabama 2012 Session

Summary

Primary Sponsor

Patricia Todd

Democrat

Session

Regular Session 2012

Title

Motor vehicles, sales tax increase, distribution for public transportation, Secs. 40-23-101, 40-23-102, 40-23-108 am'd.

Summary

HB109 would raise the state sales tax on autos, motorboats, and trailers from 2% to 4% and specify how the revenue is divided among education, government funds, and public transportation.

What This Bill Does

It increases the tax rate on purchases of listed vehicles to 4% starting January 1, 2013. It also sets how the new tax money is split: most goes to the Education Trust Fund and the State General Fund, with separate treatment for motorboats. Revenue from motor vehicle taxes would fund county-approved public transportation programs (buses, light rail, bike paths). Local taxes can still be added on top of the state tax.

Who It Affects

• Vehicle buyers and businesses in Alabama who purchase automobiles, motorboats, and certain trailers will pay a higher state tax (4% instead of 2%).
• State and local governments, including the Education Trust Fund, the State General Fund, and county public transportation programs, which would receive the new tax revenue for designated uses.

Key Provisions

• Increase the state sales tax on automobiles, motorboats, truck trailers, semitrailers, trailers, and travel trailers from 2% to 4% starting January 1, 2013.
• Of the total tax revenue, 58% goes to the Education Trust Fund and 42% goes to the State General Fund.
• For motorboats, 50% of the related tax revenue goes to the General Fund and 50% to the Education Trust Fund.
• Revenue from motor vehicle taxes shall be used for public transportation programs approved by the county where the tax was collected (e.g., buses, light rail, bike paths).
• Local taxes (municipal and county) remain in addition to the state tax and are collected as applicable.
• The act becomes effective on the first day of the third month after passage.

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