HB24 Alabama 2015 2nd Special Session

Summary

Primary Sponsor

Randall Shedd

Republican

Session

Second Special Session 2015

Title

Soft drinks, canned or bottled, bulk syrup or powders used to produce, add'l. excise tax auth. on wholesale sale, collection and distribution by Revenue Dept.

Summary

HB24 would create a wholesale excise tax on bottled or canned soft drinks and bulk syrups, with the revenue directed to state programs or a designated fund.

What This Bill Does

The bill imposes an additional excise tax at the wholesale level on soft drinks and the bulk syrups used to make them. Tax rates are 5 cents per 12 ounces or less, an extra 5 cents for each additional 12 ounces, $1 per gallon of syrup, and 3 cents per 12 ounces of powder base. The tax would be paid by manufacturers, bottlers, distributors, or importers and collected by the State Department of Revenue. Net tax proceeds would go to a Priority Budgeting and Responsibility Fund if created; otherwise they would be appropriated to various state agencies and programs listed in the bill.

Who It Affects

• Manufacturers, bottlers, distributors, and importers of soft drinks would owe the tax on wholesale sales and remit payments to the state.
• State agencies and programs would receive the net proceeds for specified uses (e.g., Medicaid, Veterans Affairs, prison reform, public health, senior services, parks, etc.) unless the Priority Budgeting and Responsibility Fund is enacted.

Key Provisions

• Imposes an additional excise tax on the wholesale sale of bottled/canned soft drinks and the bulk syrup or powders used to produce them.
• Tax definitions establish terms for containers, syrups, powders, soft drinks, and sale scope (wholesale to licensed retailers, not to end users).
• Tax rates: 0.05 dollars per 12 ounces or less; 0.05 dollars for each additional 12 ounces; 1.00 dollar per gallon of syrup; 0.03 dollars per 12 ounces of powder-based production.
• Tax is payable by manufacturers, bottlers, distributors, or importers and collected by the State Department of Revenue.
• Net proceeds are defined as gross tax receipts minus collection costs, refunds, grants, and credits, and are distributed as specified.
• If the Priority Budgeting and Responsibility Fund is enacted, net proceeds go there; otherwise they are appropriated to designated agencies with specified amounts.
• Effective date: October 1, 2015.

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