HB10 Alabama 2015 2nd Special Session

Summary

Primary Sponsor

Paul Beckman

Republican

Session

Second 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

HB10 would reshape how Alabama distributes use tax revenue, outlining new allocation rules for the General Fund, Education Trust Fund, CHIP, and local governments, including remote-seller taxes.

What This Bill Does

It amends three code sections to specify and adjust how use tax funds are distributed. It sets detailed tax rates for different types of property and clarifies how a portion of vehicle-use tax revenue is split between the Education Trust Fund and General Fund. It outlines distribution rules if a national remote-seller tax agreement is adopted, and requires CHIP funding as a first charge against the General Fund; it also provides an effective date and standard severability and repeal provisions.

Who It Affects

• State General Fund — stands to receive the majority of use tax revenue after specific distributions and to fund CHIP as a first charge.
• Local governments (municipalities and counties) — would receive portions of remote-sales/use tax proceeds under a national-rate agreement and for deliveries within their jurisdictions.

Key Provisions

• Amends 40-23-61 to establish use tax rates by property class: 4% general rate for most property, 1.5% for machines used in mining/processing/manufacturing, and 2% for automotive vehicles and mobile home setup materials; the 0.02 tax on each dollar of sale is split 58% to Education Trust Fund and 42% to General Fund.
• Amends 40-23-85 to specify distribution of use tax revenues after Department of Revenue costs and automobile-use tax allocations: remote use tax proceeds would go 75% to the General Fund and 25% to the Education Trust Fund, with remaining amounts allocated 75% to the Education Trust Fund and 25% to the General Fund; CHIP must be funded as a first charge against General Fund allocations.
• Amends 40-23-174 to describe distributions if a national remote-seller tax agreement sets a single rate: half of such proceeds go to the State of Alabama (75% to General Fund, 25% to ETF); 1/4 to the municipality where delivery occurs; the remainder to the county; local distributions must be used as provided by law for sales/use tax proceeds.
• Effective October 1, 2015; includes severability and repeal provisions for conflicting laws.

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