SB37 Alabama 2015 2nd Special Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

Second Special Session 2015

Title

Use tax receipts, portions redistributed from Education Trust Fund to State General Fund, Sec. 40-23-85 am'd.

Summary

SB37 would shift use tax receipts from Alabama's Education Trust Fund to the State General Fund, with a set split and plans to offset the transfer with increased ETF revenues.

What This Bill Does

It changes how use tax money is distributed between the Education Trust Fund and the General Fund. Remote use tax would go 75% to the General Fund and 25% to the ETF; remaining use tax would be split 57% to the ETF and 43% to the General Fund. It also specifies that funding for the Children's Health Insurance Program is paid as a first charge against General Fund allocations. The bill notes that ETF revenues are expected to rise by about $50 million annually starting in FY2016 to offset the redistribution, and it states there will be no reduction to the FY2016 appropriation cap. The act becomes effective October 1, 2015 and includes standard severability and repeal provisions.

Who It Affects

• Education Trust Fund (ETF): would receive a smaller portion of use tax receipts redistributed to the General Fund, though increased ETF revenues are intended to offset the shift.
• State General Fund (GF): would receive a larger portion of use tax receipts due to the redistribution.
• Children's Health Insurance Program (CHIP): funding would be treated as a first charge on General Fund allocations.
• Alabama Department of Revenue and state tax administrators: tasked with implementing and enforcing the new distribution rules.

Key Provisions

• Redistribute use tax receipts from the Education Trust Fund to the State General Fund with the following split: remote use tax is 75% General Fund and 25% ETF; remaining use tax is 57% ETF and 43% General Fund.
• CHIP funding is designated as a first charge against General Fund allocations.
• Increased ETF revenues of about $50 million annually beginning in FY2016 are intended to replace the redistributed use tax receipts as authorized by the act.
• The transfer does not reduce the FY2016 appropriation cap under the Education Trust Fund Rolling Reserve Act.
• Effective date is October 1, 2015, with 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

Appropriations