HB606 Alabama 2017 Session

Summary

Primary Sponsor

Chris PringleRepresentative

Republican

Session

Regular Session 2017

Title

Tennessee Valley Authority, payments in-lieu-of-taxes, redistribution of the payments to dry counties and municipalities under existing law to counties served by TVA, certain increases in liquor tax receipts distributed to dry counties and municipalities, Sec. 40-28-2 am'd.

Summary

HB606 would phase out Alabama's TVA in-lieu-of-taxes payments to TVA-served counties and shift those funds to the State General Fund over a three-year period, ending TVA county distributions by 2019-20.

What This Bill Does

It amends Section 40-28-2 to change how TVA in-lieu-of-taxes payments are distributed. The bill reduces the share of those payments that go to counties served by the Tennessee Valley Authority, eventually setting that share to 0% by fiscal year 2019-20 and transferring the funds to the State General Fund. It also adjusts the separate set-aside for dry counties not served by TVA, reducing that distribution over time and, starting in 2010, offsetting it with liquor tax revenues until those liquor-tax funds equal the 2009 dry-county amount, after which the remaining distributions would go to TVA counties. Local law would still govern allocations for Limestone, Madison, Marshall, and Morgan counties.

Who It Affects

• Counties and municipalities served by TVA: their in-lieu-of-taxes payments would be gradually reduced and eventually redirected to the State General Fund.
• Dry counties and municipalities not served by TVA: they currently get a 5% share of the payments; that share would be reduced and, over time, redirected toward TVA counties, with offsets from liquor tax revenues.

Key Provisions

• Phase-out plan: TVA-served counties' share of in-lieu-of-taxes payments declines over three fiscal years and ends by 2019-20, with the State General Fund receiving the remaining or all payments by 2020.
• General Fund shift: the state share rises from partial percentages toward 100% by fiscal year 2020, meaning the General Fund would receive all in-lieu-of-taxes payments after that.
• Dry counties provision and local allocations: the 5% distribution to dry counties not served by TVA is offset by liquor tax revenues starting 2010 until equal to the 2009 amount; after that, the distributions go to TVA counties; Limestone, Madison, Marshall, and Morgan counties have special local-law allocation rules.

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

Subjects

Tennessee Valley Authority