HB5 Alabama 2018 Session

Summary

Primary Sponsor

Tommy Hanes

Republican

Session

Regular Session 2018

Title

Taxation, check-off contribution to State Park Division of the Dept. of Conservation and Natural Resources, Dept. of Mental Health or the Alabama Medicaid Agency, Sec. 40-18-140 am'd.

Summary

HB5 adds a new income tax refund check-off allowing Alabama residents to contribute to the State Parks Division, the Department of Mental Health, or the Alabama Medicaid Agency.

What This Bill Does

It allows taxpayers to designate part of their refund (rounded to whole dollars) to one of the three programs on their Alabama state tax return. The contributions are collected by the Department of Revenue, with up to 5% used for administration, and then deposited to the State Treasurer for distribution to the chosen program. For mental health contributions, funds are split evenly between the Alliance for the Mentally Ill of Alabama and Mental Health Consumers of Alabama. The check-off would begin in the 2018 tax year, and if three years after adoption the average annual contributions fall below $7,500, the check-off could be dropped from the tax form.

Who It Affects

• Alabama resident individual income taxpayers who file a state tax return and want to support state programs by designating a portion of their refund.
• The three programs—the State Parks Division of the Department of Conservation and Natural Resources, the Department of Mental Health, and the Alabama Medicaid Agency—receive designated contributions as described.

Key Provisions

• Creates a new income tax refund check-off (beginning in the 2018 tax year) for contributions to the State Parks Division, the Department of Mental Health, or the Alabama Medicaid Agency.
• Taxpayers may designate a whole-dollar amount of their refund to one of the programs on their return; the contributions are subject to a 5% administration cap for the Department of Revenue.
• Contributions designated for mental health on the return are distributed equally to the Alliance for the Mentally Ill of Alabama and to Mental Health Consumers of Alabama.
• If three years after adoption the average annual contributions to a check-off fall below $7,500, the check-off name will be dropped from the tax form and the authorization will be repealed.
• The funds are deposited with the State Treasurer and distributed to the respective programs as specified in the statute.

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