HB474 Alabama 2016 Session

Summary

Primary Sponsor

Terri CollinsRepresentative

Republican

Session

Regular Session 2016

Title

Taxation, exemption for certain organizations, definition of the United Way and other united appeal funds provided for, Sec. 40-9-12 am'd.

Summary

HB474 defines United Way and other united appeal funds and ties their tax exemption to ongoing compliance, while clarifying who qualifies as exempt and how they must report and govern their supported charities.

What This Bill Does

The bill adds definitions for United Way, united appeal funds, supported charities, and United Way member agencies to the tax exemption law. It states that united appeal funds with a current Certificate of Exemption and in good standing with existing reporting requirements are considered within these definitions. It requires supported charities to be named in the fund's governing documents and to agree to join the fund, and it requires United Way organizations to annually list their member agencies with the Department of Revenue. It also maintains existing exemptions for numerous organizations and lays out how taxes apply to certain prepayments, while setting an effective date a few months after approval.

Who It Affects

• United Way organizations and United Way member agencies in Alabama, who would be recognized under the new definitions, must file annual lists with the Department of Revenue and meet governance and exemption requirements.
• Other united appeal funds and their supported charities, which must be defined, meet exemption criteria, have their supported charities named in governing documents, and ensure proper membership and reporting to sustain exemption.

Key Provisions

• Defines United Appeal Fund, Supported Charity, United Way Member Agency, and United Way Organization, with criteria including nonprofit status, federal tax exemption under Section 170(c), and primary purpose to raise funds for other charities.
• Provides that united appeal funds holding a Certificate of Exemption in good standing and complying with Act 2015-534 reporting are deemed within the new definitions.
• Requires each supported charity to be separately named in the fund's governing documents and to agree to become or remain a member of the united appeal fund; requires listing by name and EIN upon request.
• Requires every United Way organization to provide the Department of Revenue with a list of its constituent United Way member agencies annually, with the submission date set by Department rule.
• Maintains broad tax-exemption language for listed organizations and clarifies conditions under which it applies, including rules related to specific taxes and refunds.

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