HB276 Alabama 2015 Session

Summary

Primary Sponsor

Chris EnglandRepresentative

Democrat

Session

Regular Session 2015

Title

Municipalities, utility gross receipts, payment, including certain municipal utility corporations, distrib. of additional revenue to State General Fund, Secs. 11-50A-7, 40-21-53, 40-21-55 am'd.

Summary

HB276 would require all public, private, and municipal utility corporations in Alabama to pay a 2.2% license tax on gross receipts, remove the Alabama Municipal Electric Authority’s exemption and in-lieu-of tax payment, and direct the new revenue to the General Fund and the Special Mental Health Fund.

What This Bill Does

It expands the state license tax to cover public, private, and municipal utilities and changes how revenue is distributed. It repeals the requirement that the Alabama Municipal Electric Authority make an in-lieu-of tax payment. It sets how the tax revenue is collected, credited, and split between the Special Mental Health Fund and the General Fund, and adds administration rules including reporting and penalties. It also creates an elderly/disabled credit on electric bills funded by the new tax and specifies how customers qualify and how utilities apply the credit.

Who It Affects

• Public, private, and municipal utility corporations operating in Alabama would owe the 2.2% license tax on gross receipts, and AMEA would lose its exemption and the in-lieu-of tax requirement.
• Electric utility customers, especially households headed by someone who is 62 or older or totally and permanently disabled, may receive a monthly credit on their electric bill if they meet income and other eligibility rules.

Key Provisions

• Imposes a 2.2% license tax on gross receipts for all public, private, and municipal utilities; allows deductions for gross receipts from electricity sold for resale and electricity sold to certain eligible customers; sets initial-year and ongoing payment/reporting requirements.
• Repeals the 2.2% in-lieu-of tax payment requirement for the Alabama Municipal Electric Authority.
• Provides that after deducting collection costs, 85.64% of the remaining license tax revenue goes to the Special Mental Health Fund and 14.36% goes to the General Fund.
• Establishes an elderly/disabled credit on electric bills for qualifying households, administered by the Department of Human Resources, with utilities expected to apply the credit within 45 days of notification.
• Requires quarterly tax payments to the Department of Revenue, with penalties for false statements and other standard enforcement provisions.
• Effective date: the act takes effect on the first day of the third month after enactment; includes a severability clause.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Municipalities