HB153 Alabama 2015 Session

Summary

Primary Sponsor

Bill Poole

Republican

Session

Regular 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

HB153 changes how Alabama distributes use tax revenue, especially from remote sales, directing more funds to the General Fund, the Education Trust Fund, CHIP, and local governments.

What This Bill Does

It amends sections 40-23-61, 40-23-85, and 40-23-174 to establish new distribution rules for use tax receipts. It keeps the existing tax rates for storage/use (4%), mining machinery (1.5%), and vehicles (2%), but clarifies definitions and how undercollections are handled. It specifies that remote use tax receipts go 75% to the General Fund and 25% to the Education Trust Fund, while the remaining use tax receipts go 75% to the Education Trust Fund and 25% to the General Fund, with CHIP funded as a first charge on General Fund allocations. It also sets up a framework for distributing remote-sales proceeds to municipalities and counties if Alabama participates in a national agreement, and makes the measure effective October 1, 2015.

Who It Affects

• General Fund: receives 75% of remote use tax receipts and 25% of remaining use tax receipts, plus CHIP funding drawn as a first charge against General Fund allocations.
• Education Trust Fund: receives 25% of remote use tax receipts and 75% of remaining use tax receipts, plus any other specified distributions.
• CHIP program: funded as a first charge against General Fund allocations each year.
• Municipalities and counties: may receive a share (quarter of certain remote-sale proceeds) where deliveries occur, and the remainder goes to county governments.
• Taxpayers and remote buyers: transactions with out-of-state sellers are treated as use tax for distribution purposes.

Key Provisions

• Taxes and rates for storage/use (4%), machinery (1.5%), and automotive/vehicle-related use (2%) remain, with definitions and reporting provisions clarified.
• Remote use tax receipts are distributed 75% to the General Fund and 25% to the Education Trust Fund; the remaining use tax receipts are distributed 75% to the Education Trust Fund and 25% to the General Fund.
• CHIP funding is set as a first charge against the General Fund allocations derived from these use tax distributions.
• If a national agreement on remote sales collection is enacted, proceeds are distributed: roughly half to Alabama (75% to General Fund, 25% to ETF), with one-quarter to the municipality where delivery occurs and the remainder to the county governing body.
• The bill becomes effective October 1, 2015, and 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