HB463 Alabama 2016 Session

Updated Feb 24, 2026

Summary

Primary Sponsor: Elaine Beech
Democrat
Session: Regular Session 2016
Title: Washington Co., sales and use tax, leasing tax, county commission authorized to levy, collection, distrib. to county general fund, referendum
Summary: Washington County, Alabama could adopt a county-level 1% sales tax and 1% leasing tax to fund roads and bridges, but only if voters approve in a local referendum.
What This Bill Does
It authorizes the Washington County Commission to levy a 1% sales and use tax (0.5% on motor vehicle-related sales) and a 1% leasing tax on the gross proceeds from leasing equipment or passenger vehicles, starting February 1, 2017. Proceeds would be collected by the state Department of Revenue and deposited into a county fund designated for road and bridge maintenance, repair, replacement, or construction, with reporting and enforcement requirements. A local referendum is required; if the majority votes Yes, the taxes take effect; if No, the act is void.

Who It Affects
Washington County residents and local businesses would pay the new sales/use and leasing taxes on qualifying transactions (vehicle-related sales taxed at 0.5% and other sales at 1%).
The Washington County government and the Alabama Department of Revenue would administer, collect, and enforce the taxes, handle reporting, and manage the distribution of funds (including a collection fee).

Key Provisions
Section 3(a): The county may levy a 1% sales and use tax (0.5% on motor vehicles and similar items) and a 1% leasing tax starting February 1, 2017.
Section 3(b)/Section 4: Existing state sales/use tax exemptions remain in effect; taxes are collected by the state Department of Revenue with prescribed reporting requirements.
Section 5: Taxpayers must add and collect the tax from buyers or lessees; it is unlawful to absorb or refund the tax.
Section 6-7: The tax becomes a debt of the county and can be collected by the Department of Revenue with the same powers as state taxes; violations are enforceable under applicable laws.
Section 8: The Department may charge up to 5% of total collections for collecting the tax; the amount is paid into the State Treasury and then distributed to Washington County.
Section 9: Proceeds must be deposited into a county special revenue fund for road and bridge maintenance, repair, replacement, or construction.
Section 10: The act becomes operative only if approved by a majority of voters in a county referendum; if approved, it takes effect as specified; if not, it is void.
Section 11: The act becomes effective on February 1, 2017.

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