SB18 Alabama 2012 Session

Summary

Primary Sponsor

Roger Bedford, Jr.

Democrat

Session

Regular Session 2012

Title

Coal, excise and privilege tax, termination date extended, tax proceeds further distributed, Sec. 40-13-6, 40-13-8 am'd.

Summary

SB18 would end the coal excise and privilege tax on Oct 1, 2016 unless the Legislature extends it, and would change how tax receipts are distributed to state and local funds.

What This Bill Does

It sets a termination date for the coal tax and outlines new distribution rules for the tax receipts. The receipts would be allocated to the State General Fund and to multiple state and local funds, including the Alabama Mining Academy and various county and town funds, with specific earmarks for libraries, schools, and development authorities. If revenue falls short of the planned allocations, the amounts would be prorated among the recipients. A portion of the mining academy funds would be used to retrain coal miners who lose their jobs; the law requires annual audits of certain funds and makes the act effective several months after passage.

Who It Affects

• Coal producers and workers, because the coal tax could end in 2016 unless extended and some funds (mining academy retraining) target workers affected by mine closures.
• State and local governments and development organizations, because the bill changes who gets coal tax money and how much goes to funds such as the State General Fund, Tuscaloosa County General Fund, Jefferson County General Fund, Walker County Economic and Industrial Development Authority, and multiple local libraries, schools, and development authorities.

Key Provisions

• The coal excise and privilege tax terminates on October 1, 2016 unless the Legislature extends it.
• Severance tax receipts remaining after bond payments and reserves are distributed to specified funds and entities, including the State General Fund, Alabama Mining Academy, and various county, town, library, education, and development accounts, with annual audit requirements.
• A portion of funds for the Alabama Mining Academy may be used to retrain terminated coal miners for new work opportunities.
• If revenue is insufficient to fund all distributions, amounts are prorated among the designated recipients.
• The act repeals conflicting laws and becomes effective on the first day of the third month after its passage.

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