SB30 Alabama 2015 1st Special Session

Summary

Primary Sponsor

Del Marsh

Republican

Session

First Special Session 2015

Title

Motor vehicle, remote sales, sales and use tax, distribution to General Fund, Secs. 40-23-61, 40-23-85, 40-23-174 am'd.

Summary

SB30 would change how Alabama distributes use tax revenue, prioritizing CHIP funding and adjusting shares between the General Fund, Education Trust Fund, and local governments, with provisions for remote-seller tax collections.

What This Bill Does

The bill rewrites how use tax funds are distributed by amending three sections. It clarifies the distribution of auto-use tax (58% to the Education Trust Fund and 42% to the General Fund) and then sets new allocation rules for remaining use tax proceeds, including a 75% to General Fund and 25% to the Education Trust Fund for remote use tax amounts, with any remaining amounts split 75% to Education Trust Fund and 25% to the General Fund, and it requires CHIP funding as a first charge against General Fund allocations. It also outlines how proceeds would be distributed if a national agreement on remote sales tax collection is adopted, including a split that favors the General Fund and Education Trust Fund and allocations to municipalities and counties. The effective date is October 1, 2015.

Who It Affects

• State-level funds (General Fund and Education Trust Fund) and CHIP, because the bill changes how use tax proceeds are allocated among these funds and requires CHIP funding as a first charge against General Fund money.
• Local governments (municipalities and counties), because a portion of remote sales/use tax proceeds would be distributed to municipalities and counties under the remote-collection scenario.

Key Provisions

• Amends §40-23-61 to reaffirm the existing 4%, 1.5%, and 2% use tax rates for certain property and to set new distribution rules for the proceeds, including the 58% to Education Trust Fund and 42% to the General Fund for automobile use tax.
• Amends §40-23-85 to specify post-distribution allocations: remote use tax amounts go 75% to the General Fund and 25% to the Education Trust Fund, and any remaining amounts go 75% to the Education Trust Fund and 25% to the General Fund, plus CHIP funding as a first charge against General Fund amounts.
• Adds CHIP funding as a first charge against the General Fund allocations under this section, ensuring CHIPS funding priority in the distribution.
• Amends §40-23-174 to describe distributions if a national remote-seller tax collection agreement is enacted: half of such proceeds are distributed with 75% to the General Fund and 25% to the Education Trust Fund, 25% to municipalities where delivery occurs, and the remainder to county governments.
• Effective date: October 1, 2015 (following passage and approval or becoming law).

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