HB30 Alabama 2015 2nd Special Session

Summary

Primary Sponsor

Bill Poole

Republican

Session

Second Special Session 2015

Title

Use tax, revenue redistributed to State General Fund, Sec. 40-23-85 am'd.

Summary

HB30 changes how Alabama distributes use tax revenue, moving many programs from the Education Trust Fund to the General Fund and adjusting split rules, with CHIP funding protected.

What This Bill Does

It rewrites how use tax funds are divided between the General Fund and the Education Trust Fund. For the automobile-related use tax, 58% goes to the Education Trust Fund and 42% to the General Fund. It also sets remote use tax distributions at 75% to the General Fund and 25% to the Education Trust Fund, with the remaining use tax distributed 75% to the Education Trust Fund and 25% to the General Fund, and CHIP funded as a first charge. Beginning in fiscal year 2017, numerous state programs listed would be funded from the General Fund instead of the Education Trust Fund, with a mechanism to restore ETF funding from use tax if those programs still receive ETF support. If a national remote sales tax agreement is enacted, proceeds would be distributed to Alabama and to municipalities and counties according to specified rules.

Who It Affects

• State agencies and programs currently funded through the Education Trust Fund, which would switch to funding from the State General Fund starting in FY 2017 (examples include Legislative offices, Archives and History, Health/Public Health programs, Mental Health, Law Enforcement, Youth Services, Higher Education-related programs, and several other state programs).
• Taxpayers and businesses paying use tax or remitting remote use tax, as the distribution of those funds changes and CHIP funding is prioritized, with potential implications for how local governments receive remote sales tax proceeds if a national agreement is reached.

Key Provisions

• §40-23-61: Amends distribution for the automobile-related use tax, setting 58% of the tax to the Education Trust Fund and 42% to the State General Fund.
• §40-23-85: After these distributions and the automobile-related use tax, remote use tax amounts are to be distributed 75% to the General Fund and 25% to the Education Trust Fund, while remaining use tax amounts are distributed 75% to the Education Trust Fund and 25% to the General Fund; CHIP funding is a first charge against General Fund.
• §40-23-85(b): Starting FY 2017, the agencies and programs listed will be funded from the State General Fund instead of the Education Trust Fund; if any of these programs still receive ETF funding, an amount equal to that ETF funding will be redistributed from use tax revenues to the ETF for that year.
• §40-23-174: If a national agreement for remote sales tax is enacted, proceeds would be distributed to Alabama with specified shares to General Fund and ETF, and the remainder would be allocated to municipalities and counties; distributions to municipalities and counties follow existing laws for sales and use tax proceeds.
• Section 4: The act becomes effective only after the enactment of HB (2015 Second Special Session) following its passage and governor's approval.

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