HB533 Alabama 2015 Session

Summary

Primary Sponsor

Will AinsworthLt. Governor

Republican

Session

Regular Session 2015

Title

Taxation, state tax revenue, distribution, provided further for, Secs. 2-21-24, 2-22-9, 2-23-5, 2-26-15, 8-17-91, 9-13-84, 10A-1-4.31, 22-21-24, 22-21-46, 22-27-17, 22-30B-2.1, 22-40A-15, 27-4-2, 27-4A-3, 28-3-74, 28-3-184, 28-3-200, 28-3-201, 28-3-202, 28-3-203, 28-3-204, 28-7-16, 32-2-8, 32-6-5, 32-6-6.1, 32-6-49.19, 32-8-6, 33-5-10, 38-4-12, 38-4-12.1, 38-4-13, 40-1-31, 40-8-3, 40-12-246.1, 40-12-318, 40-17-223, 40-17-360, 40-21-51, 40-21-87, 40-21-107, 40-21-123, 40-23-2, 40-23-35, 40-23-50, 40-23-61, 40-23-77, 40-23-85, 40-23-108, 40-23-174, 40-25-23, 40-26-20 am'd.

Summary

HB533 would overhaul how Alabama distributes state tax revenues and associated fees by creating new dedicated funds, redefining shares for major funds, and specifying county and municipal distributions for infrastructure, health, education, and environmental programs.

What This Bill Does

The bill changes the distribution rules for a wide range of taxes, fees, and permit revenues, directing them into newly designated funds such as the Agricultural Fund, Alabama Recycling Fund (ARF), Solid Waste Fund (SWF), Scrap Tire Fund, and several health and education funds; it also fixes the shares that go to the General Fund, Education Trust Fund, and various state departments. It creates and allocates multiple funds to support programs in agriculture, transportation, environment, health, and welfare, and prescribes how net revenues (after collection costs) are split among these funds. It reorganizes how counties and municipalities receive revenue, often using population-based formulas and special committees to determine road and infrastructure spending, with funds kept in county special accounts. It also reallocates liquor and tobacco tax revenues to support state programs, including mental health, education, and welfare, and requires new reporting and governance surrounding these distributions. The measure takes effect October 1, 2015 and repeals laws that conflict with its provisions.

Who It Affects

• State agencies and funds (e.g., Department of Revenue, Department of Human Resources, Department of Mental Health, Department of Environmental Management, Department of Transportation, Department of Conservation and Natural Resources, Alabama Health Board, and Education-related accounts) by creating new revenue streams and specifying how revenues are to be deposited and spent.
• Counties and municipalities by changing how various taxes and fees are distributed to local governments, setting up county special funds, population-based allocations, and a Secondary Road Committee to guide road and bridge spending.

Key Provisions

• Creates and directs revenues into new or reorganized funds (Agricultural Fund, ARF, SWF, Scrap Tire Fund, Public Road and Bridge Fund, Alabama Recycling Fund, Special Mental Health Fund, Education Trust Fund) and specifies their use for state programs and local projects.
• Reallocates and codifies distribution of liquor store proceeds among the Alcoholic Beverage Control Board, General Fund, Department of Human Resources, Department of Mental Health, and other funds, with portions to wet counties and municipalities and for education and welfare purposes.
• Reallocates cigarette and other tobacco taxes and motor vehicle-related taxes to fund General Fund, Education Trust Fund, Special Mental Health Fund, and related departments, with specified shares and uses for public health, education, and welfare programs.
• Establishes and funds the Alabama Recycling Fund (ARF) and Solid Waste Fund (SWF) to support recycling grants, waste remediation, and environmental management, with distribution rules and oversight by the Department of Revenue and Department of Environmental Management.
• Creates a Secondary Road Committee under the State Transportation framework to designate high-density roads and recreational access roads, set minimum design standards, review county plans, and ensure funds are used per constitutional and statutory rules; funds are kept in county special funds and not commingled with other county funds.
• Requires counties and municipalities to allocate and use proceeds from these revenues for transportation planning, road and bridge construction and maintenance, and other public works, under oversight and approval by transportation authorities.
• Amends multiple sections to require quarterly or monthly reporting of tax/toll receipts, with penalties and remedies for late filings or underpayments, and mandates compliance with the new distribution scheme.
• Effective date of the act is October 1, 2015; it repeals conflicting laws to align with the new distribution framework.

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