HB747 Alabama 2012 Session

Summary

Primary Sponsor

Greg Wren

Republican

Session

Regular Session 2012

Title

Taxation, realignment of distribution of use tax on automobiles to provide additional funding for State General Fund, Sec. 40-23-85 am'd

Summary

HB747 would change how use tax revenue, especially from automobiles, is distributed, sending more money to the State General Fund through a new allocation formula.

What This Bill Does

The bill amends a state tax statute to realign the distribution of use tax funds. After current distributions and the use tax on automobiles to the General Fund, the remaining use tax money would first go to the Education Trust Fund up to $200 million, and any leftover would be split 75% to the General Fund and 25% to the Education Trust Fund.

Who It Affects

• State General Fund – would gain a larger share of use tax revenue, receiving 75% of the remaining funds after the initial allocations.
• Education Trust Fund – would continue to receive use tax funds but under a new rule: at least $200 million goes to EFTF first, and then 25% of any remaining funds, helping EFTF maintain funding.
• State Treasury and Department of Revenue – would implement and manage the revised distribution system for use tax funds.

Key Provisions

• Amends Section 40-23-85 to change how use tax funds are distributed after the required distributions and the use tax on automobiles to the General Fund (as per Section 40-23-61(c)).
• Specifies that after those distributions, the remaining use tax funds go to the Education Trust Fund up to $200,000,000, and any additional funds are split with 75% to the General Fund and 25% to the Education Trust Fund.

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