HB429 Alabama 2016 Session

Summary

Primary Sponsor

Elaine Beech

Democrat

Session

Regular Session 2016

Title

Washington Co., sales and use tax, county commission authorized to levy, collection, distrib. to county general fund, referendum

Summary

HB429 would allow Washington County to impose a 1% sales and use tax and a 1% leasing tax (with a 0.5% rate for certain vehicle sales) collected by the state and used for roads and bridges, subject to voter approval.

What This Bill Does

If approved, the county could levy the new taxes in addition to existing ones. The Alabama Department of Revenue would collect the taxes and remit the money to the county, after deducting up to 5% as a collection fee. The funds would be deposited into a county fund and used only for maintenance, repair, replacement, or construction of roads and bridges in Washington County. The act creates requirements for reporting and enforcement, establishes a debt and lien approach for tax collection, and requires a voter referendum to activate the taxes.

Who It Affects

• Washington County residents and visitors who buy goods or lease equipment or vehicles would pay the new sales/use and leasing taxes (with a reduced 0.5% rate on certain vehicle-related sales).
• Local businesses that collect sales, use, and leasing taxes would be responsible for adding and collecting the tax and filing periodic reports, with penalties for noncompliance.
• Washington County government would receive tax proceeds to fund roads and bridges, with the Department of Revenue handling collection and enforcing the tax.
• The Alabama Department of Revenue would administer collection and enforcement, and the county could use the funds for road and bridge projects.

Key Provisions

• Authorizes Washington County to levy a 1% sales and use tax, plus a 1% leasing tax; the vehicle-related portion of the sales tax is capped at 0.5% for certain motor vehicles and similar equipment.
• Exempts the new taxes from any gross proceeds that are already exempt under state sales and use tax statutes.
• Requires collection by the Alabama Department of Revenue with reporting by taxpayers; allows deferral of credit sales until collection and requires monthly reporting with audit access for the county.
• Proceeds must be deposited into a county special revenue fund for roads and bridges; the state may deduct up to 5% as a collection fee; the taxes become operative only if approved by a county referendum and a majority votes Yes.

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

Subjects

Washington County