HB609 Alabama 2014 Session

Summary

Primary Sponsor

Daniel H. Boman

Republican

Session

Regular Session 2014

Title

Fayette Co., additional one percent sales and use tax, ending October 30, 2017, unless continued by referendum, distribution provided

Summary

HB609 would authorize Fayette County to impose a 1% sales tax on local gross receipts, distribute the funds to the county hospital, Board of Education, and debt reduction, and expire in October 2017 unless voters approve its continuation.

What This Bill Does

If enacted, Fayette County could levy a 1% tax on most county sales, with exemptions aligned to state law (and specific exclusions for autos, farm machinery, boats, and manufacturing machinery). The tax would be collected like the state sales tax by the Department of Revenue or a contracted collector, with required taxpayer reporting and monthly payments. Net proceeds would be distributed 40% to the Fayette County Hospital Board, Inc., 40% to the Fayette County Board of Education, and 20% to the County Commission for debt reduction or matching grants, with collection costs up to 5% of total collections. The tax would automatically end on October 30, 2017 unless a majority of county electors votes to continue it in a referendum held on the first Tuesday in October 2017.

Who It Affects

• Residents and visitors of Fayette County who buy goods or pay admission would pay the 1% tax.
• The Fayette County Hospital Board, Inc., the Fayette County Board of Education, and the Fayette County Commission would receive and use the funds (40%, 40%, and 20% respectively) for hospital operations, education, and debt reduction or grant matching.

Key Provisions

• Authorizes Fayette County to levy a 1% sales and use tax on gross receipts within the county, with exemptions matching state statutes and excluding sales of automobiles, farm machinery, boats, and machinery used for manufacturing from the tax.
• Automatically terminates the tax on October 30, 2017 unless continued by a majority vote of county electors in a referendum on the first Tuesday in October 2017.
• Tax collection would be handled by the State Department of Revenue or a contracted entity, collected like state sales taxes, with required reports and the option to defer reporting credits until collection.
• Net proceeds would be distributed as 40% to the Fayette County Hospital Board, 40% to the Fayette County Board of Education, and 20% to the county commission for debt reduction or matching grants; collection costs may be up to 5% of total collections.
• The tax would be a debt due Fayette County, create a lien on property for unpaid amounts, and be administered under the same powers and statutes as the state sales tax, incorporated by reference.

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

Subjects

Fayette County