SB15 Alabama 2016 Session

Summary

Primary Sponsor

Cam Ward

Republican

Session

Regular Session 2016

Title

Taxation, state tax revenues, distribution further provided for, Secs. 9-13-84, 22-9A-23, 22-21-24, 27-4A-3, 28-3-74, 28-3-184, 28-3-201, 28-3-202, 28-3-204, 28-7-16, 38-4-12, 38-4-12.1, 38-4-13, 40-1-31, 40-8-3, 40-21-51, 40-21-87, 40-23-35, 40-23-50, 40-23-77, 40-25-23 am'd.

Summary

SB15 would overhaul how Alabama distributes state tax revenue, creating new dedicated funds and changing the share allocated to the General Fund, Education Trust Fund, mental health and welfare programs, veterans programs, parks, and local governments.

What This Bill Does

It amends multiple code sections to set new distribution rules for taxes, including creating a Special State Forestry Fund funded by forest product severance taxes with at least 85% used for forest protection. It reorganizes how revenues from liquor store profits and cigarette/tobacco taxes are allocated among the General Fund, Education Trust Fund, Public Welfare, mental health and veterans programs, and local governments (counties and municipalities), with various share formulas and potential transfers. It also updates premium tax distributions for insurers and adds credits and payment timing requirements, while directing certain past surpluses to veterans and foster care initiatives and adjusting funding for parks and coastal programs.

Who It Affects

• Forestry program and taxpayers funding forest protection (via the new Special State Forestry Fund and mandatory minimum allocations for forest protection).
• Insurers and their policyholders (through revised premium tax distributions, credits, quarterly payment requirements, and allocations to General Fund, Education Trust Fund, and mental health-related funds).
• Counties and municipalities (via distributions from liquor profits and certain alcohol/tobacco revenue provisions, including wet counties and local government shares).
• State agencies and program beneficiaries (Department of Human Resources, Department of Mental Health, Alabama Department of Veterans Affairs, Department of Conservation and Natural Resources, foster care and veteran programs, and park/coastal program funding).

Key Provisions

• Creation and funding rules for the Special State Forestry Fund: severance taxes on forest products go into this fund, at least 85% must be spent on forest protection, the fund does not revert to the General Fund, and disbursements are supervised by the State Forester for statewide forestry programs.
• Revised distribution of liquor and tobacco tax proceeds: net profits from Alabama liquor stores and cigarette/tobacco tax revenues are allocated among the General Fund, Education Trust Fund, Public Welfare Trust Fund, mental health and veterans-related funds, and local governments (counties and municipalities) with specified percentages and contingent transfers, including provisions for excess revenues and distribution timing.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation