SB4 Alabama 2015 2nd Special Session

Summary

Primary Sponsor

Trip Pittman

Republican

Session

Second Special Session 2015

Title

Taxation, distribution of use tax funds, Sec. 40-23-85 am'd.

Summary

This bill changes how use tax money is split between Alabama's General Fund and Education Trust Fund, sets CHIP funding as a first charge, and temporarily alters revenues for FY2015.

What This Bill Does

It amends the use tax distribution rules to allocate remote use tax 75% to the General Fund and 25% to the Education Trust Fund, while remaining use tax goes 75% to the Education Trust Fund and 25% to the General Fund; CHIP is funded first from the General Fund allocations. It also clarifies that out-of-state seller transactions shipped from outside Alabama are treated as use tax for distribution purposes. For the fiscal year starting October 1, 2015, non-remote use tax (after DOR expenses) would be split 43% to the General Fund and 57% to the Education Trust Fund. Additionally, the bill allows a one-year transfer of recurring Education Trust Fund revenues to the General Fund for FY2015 with no reduction to the appropriation cap for FY2016, and it includes standard repeal and effective-date provisions.

Who It Affects

• State General Fund and Education Trust Fund — will receive modified shares of use tax revenue (including the remote vs. non-remote allocations) and will fund CHIP first from the General Fund allocations.
• Department of Revenue and CHIP program — DOR expenses will be paid from the appropriation, and CHIP will be funded as a first charge from the General Fund allocations.

Key Provisions

• Amends Section 40-23-85 to set new distribution rules: remote use tax 75% to the General Fund and 25% to the Education Trust Fund; remaining use tax 75% to the Education Trust Fund and 25% to the General Fund; CHIP funding as a first charge against General Fund allocations.
• Requires all out-of-state transactions shipped from outside Alabama to be treated as use tax for distribution purposes, regardless of other tax classifications.
• For FY2015 (beginning Oct 1, 2015), after DOR expenses and excluding remote use tax, distributes 43% of tax revenue to the General Fund and 57% to the Education Trust Fund.
• Section 2 allows a transfer of recurring Education Trust Fund revenues to the General Fund for FY2015 without reducing the appropriation cap for FY2016.
• Section 3 repeals laws that conflict with the act.
• Section 4 makes the act effective 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