HB154 Alabama 2013 Session

Summary

Primary Sponsor

Steve ClouseRepresentative

Republican

Session

Regular Session 2013

Title

Sales and use tax, collection, revenue from discount, distribution to Conservation and Natural Resources Department altered for two years, Secs. 40-23-35, 40-23-77 am'd.

Summary

HB154 changes how Sales Tax and Use Tax discounts are distributed and expanded, directing more revenue to counties, welfare programs, and conservation-related projects while setting new discount rules for sellers.

What This Bill Does

The bill amends sections 40-23-35 and 40-23-77 to modify discount distributions and authorize new discount rules. It allows the Governor to set up to a 3% discount for sellers and to establish a per-seller maximum discount starting in 2001. It creates a structured funding flow where remaining tax receipts after administration are allocated to counties, the Department of Human Resources, the Department of Conservation and Natural Resources (for parks and related capital outlay), debt service, and the State General Fund, with additional allocations to welfare programs, the Foster Children program, and other state funds, including provisions for Coast programs and special year-based adjustments. The act becomes effective October 1, 2013.

Who It Affects

• Counties (67 counties) receive a fixed annual allocation of $378,000 each, which must be used for full-time health services and extension services in cooperation with state or federal agencies, as determined by county commissions.
• State agencies and programs funded by the discount allocations (including the Department of Revenue, Department of Human Resources, Department of Conservation and Natural Resources, the General Fund, and the Education Trust Fund) receive redirected or new funding streams derived from the increased receipts caused by discount caps and the revised distribution schedules, affecting welfare services, foster care, parks capital projects, coastal programs, and related initiatives.

Key Provisions

• Amends 40-23-35 to require the Department of Revenue’s annual appropriation to cover salaries and operating costs, with remaining funds first applied to replacing lost school levies and homestead-exemption-related General Fund transfers, and then distributed to various funds.
• Allocates remaining tax proceeds after expenses as: (a) $378,000 to each of the 67 counties; (b) $1,322,000 to the Department of Human Resources; (c) funds to the Department of Conservation and Natural Resources for state parks capital outlay tied to the increase in receipts from discount caps; (d) debt service payments from the proceeds; (e) a minimum park-related funding level and ongoing adjustments; (f) funding for the Food Stamp program administered by Human Resources; and (g) the balance to the Education Trust Fund, with other specific provisions.
• Amends 40-23-77 to allow a seller discount of up to 3% (or a governor-approved maximum per seller) on taxes due, with rules to be set by the Department of Revenue by executive order; applies to taxes collected after June 1, 2001.
• From Oct 1, 2002 onward, the increase in receipts due to discount caps is allocated first to debt service and then to the Department of Conservation and Natural Resources (for parks and related programs), Coastal Programs, and a $1,000,000 allocation to Coastal Programs, with remaining balances allocated to the State General Fund or other specified funds; special provisions apply for fiscal years ending 2012-2014 directing $1,000,000 to the State General Fund instead of Coastal Programs.
• Effective date set for October 1, 2013.

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

Subjects

Sales and Use Tax