SB496 Alabama 2015 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

Regular Session 2015

Title

Use tax, distrib. to State General Fund reduced, distributed to Education Trust Fund increased, including distrib. from remote sales after national agreement on collection, Secs. 40-23-85, 40-23-174 am'd.

Summary

SB496 would change how Alabama distributes use tax and remote use tax revenue, reallocating funds between the General Fund and Education Trust Fund and, if a national remote-sales tax agreement is reached, also sharing some proceeds with municipalities and counties to help the General Fund and boost education funding.

What This Bill Does

It amends two sections (40-23-85 and 40-23-174) to specify new distributions of use tax receipts, including a first-charge for CHIP and revised splits between the General Fund and the Education Trust Fund. It makes a case that redistributing these funds will help the General Fund’s immediate shortfall and increase Education Trust Fund support once federal action on remote taxation occurs. It also creates a framework where, if a national remote sales tax agreement sets a single rate, half of those proceeds go to the state with 75% to the General Fund and 25% to the Education Trust Fund, with a quarter going to municipalities and the remainder to counties.

Who It Affects

• State General Fund and Education Trust Fund receive altered shares of use tax and remote use tax receipts (affecting funding for state programs, including CHIP first-charge).
• Municipalities and counties could receive a portion of the remote use tax proceeds if a national remote sales tax agreement is enacted (local revenue impact).

Key Provisions

• Revises distribution of use tax receipts after Department of Revenue expenses and existing allocations, establishing new splits for remote use tax receipts between the General Fund and Education Trust Fund and requiring CHIP funding as a first charge.
• If a national agreement creates a single remote sales tax rate, distributes half of those proceeds to the state with 75% to the General Fund and 25% to the Education Trust Fund, and the remainder to municipalities (one-quarter) and counties (remainder).

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