HB144 Alabama 2016 Session

Summary

Primary Sponsor

Tommy Hanes

Republican

Session

Regular Session 2016

Title

Taxation, income tax refund check-off, contribution to Alabama State Parks, Mental Health Department, or Alabama Medicaid Agency, Sec. 40-18-140 am'd.

Summary

HB144 adds new income tax refund check-offs for contributions to Alabama state parks, the Department of Mental Health, and the Alabama Medicaid Agency.

What This Bill Does

If enacted, Alabama residents could designate part of their tax refund to one of the three new programs on their return. The donated funds would go to the State Treasurer to be distributed to the specified program, with administration costs capped at 5%. The mental health check-off remains, and the new check-offs would begin in the 2016 tax year; future check-offs would automatically appear on tax forms without new amendments. If a check-off average falls below $7,500 over a three-year period, it can be dropped from the tax form after three years.

Who It Affects

• Alabama resident individual income taxpayers who file tax returns and may choose to designate a portion of their refund to the new programs
• The Alabama state parks, the Department of Mental Health, and the Alabama Medicaid Agency, which would receive funds designated through these refund check-offs

Key Provisions

• Adds three new income tax refund check-offs for contributions beginning in the 2016 tax year: to the Alabama state parks, to the Department of Mental Health, and to the Alabama Medicaid Agency.
• Taxpayers may designate a whole-dollar amount of their refund in a box on the tax form to be credited to the chosen program; all future check-offs can be added without separate amendments to the law.
• Contributions to these check-offs, after subtracting administrative costs not to exceed 5%, are deposited with the State Treasurer and distributed to the respective programs as specified.
• Distribution specifics include: (a) state parks receive funds for the parks program; (b) mental health contributions are distributed according to existing rules (to the Alliance for the Mentally Ill of Alabama and the Mental Health Consumers of Alabama); (c) the Department of Mental Health and the Alabama Medicaid Agency receive funds designated for them.
• If a check-off's average annual contributions do not reach $7,500 over a three-year period, the check-off can be dropped from the tax return forms after three years and its authorization repealed.
• Effective date: the act becomes law on the first day of the third month after passage and approval by the Governor.

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

Subjects

Income Tax Check-Offs