SB131 Alabama 2018 Session

Summary

Primary Sponsor

Trip Pittman

Republican

Session

Regular Session 2018

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, 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

SB 131 would overhaul how Alabama distributes state tax revenue, create a new Veterans’ assistance fund, and set new shares for education, mental health, welfare, forestry, and local governments, with many changes taking effect October 1, 2018.

What This Bill Does

It reorganizes revenue distribution across multiple funds, notably creating the Special State Forestry Fund and directing forestry taxes so that 80% goes to that fund and 20% to the General Fund starting October 1, 2018, with at least 85% of the forestry fund allocation spent on forest protection. It reallocates various taxes and fees (including vital statistics fees, hospital licensing fees, premium taxes, liquor-store profits, table wine/spirits taxes, and cigarette taxes) among the General Fund, Education Trust Fund, Public Welfare Trust Fund, and new or existing mental health and welfare funds, plus a Veterans’ Assistance Fund. It establishes mechanisms for quarterly payments and credits for insurers, and for distributing state revenue to local governments (wet counties and municipalities) as part of the new framework. It also creates the Alabama Veterans’ Assistance Fund and directs how proceeds from certain old funds will be redirected to veterans and related programs, with many provisions taking effect on October 1, 2018.

Who It Affects

• Group 1: State programs and funds (e.g., General Fund, Education Trust Fund, Special Mental Health Fund, Public Welfare Trust Fund, Alabama Special Mental Health Fund, State Board of Health, Department of Human Resources, Department of Conservation and Natural Resources, State Forester, Department of Mental Health, Department of Revenue, and the Alabama Veterans’ Assistance Fund) — these groups would receive altered shares of various taxes and fees and would be responsible for administering or distributing those funds under the new rules, effective October 1, 2018.
• Group 2: Local governments (counties and municipalities, especially wet counties) — these entities would receive new or revised shares of liquor store profits, cigarette tax revenues, and other state-derived funds, with distributions specified by population, county status (wet/dry), and jurisdiction, starting October 1, 2018.

Key Provisions

• §9-13-84: Creates the Special State Forestry Fund; beginning Oct 1, 2018, 80% of severance taxes go to this fund and 20% to the State General Fund, with at least 85% of the Special Forestry Fund spent on forest protection and surplus allowed to accumulate; funds are continuously appropriated for the statewide forestry program.
• §22-9A-23: Vital statistics fees (searches, copies, etc.) begin Oct 1, 2018 with 20% credited to the State General Fund and 80% credited to the State Board of Health; other fee provisions remain, with local offices retaining portions as prescribed.
• §22-21-24: Hospital licensing fees begin Oct 1, 2018 with revised distribution of license revenue between the State General Fund and the State Board of Health.
• §27-4A-3: Premium tax on life, health, and other insurance; establishes annual, quarterly payment rules and credits; starting Oct 1, 2018, certain nonprofit and other premium tax components are adjusted to credit portions to the General Fund, Education Trust Fund, and Mental Health-related funds, with caps and aggregation rules for insurers and their affiliates.
• §28-3-74 and related liquor tax sections (28-3-184, 28-3-201, 28-3-202, 28-3-204, 28-7-16): Reforms distribution of Alabama Alcoholic Beverage Control revenues and liquor taxes; effective Oct 1, 2018, liquor store profits and tax proceeds are allocated among the General Fund, Department of Human Resources, wet counties, and municipalities, with specified percentages and purposes (e.g., public health, welfare, and general state needs).
• §38-4-12 and §38-4-12.1: Creates the Alabama Veterans’ Assistance Fund and shifts surplus distributions from Confederate soldier pensions and related funds to veterans’ programs; starting Oct 1, 2018, portions of the eighty percent of the one-mill revenue directed to veterans’ purposes are redirected to the Veterans’ Assistance Fund.
• §40-1-31, §40-8-3, §40-21-51, §40-21-87, §40-23-35, §40-23-50, §40-23-77, §40-25-23: Revisions to the distribution of various taxes (education, mental health, public welfare, general fund, and related programs) and adoption of new allocation formulas or credits, with many changes taking effect Oct 1, 2018.
• §40-23-50 and related sections: Taxable activities such as highway contract taxes and cigarette/tobacco revenues reallocated across General Fund, Public Welfare Trust Fund, and other funds, with new distribution rules and ongoing administration under the Budget Management Act; effective Oct 1, 2018.

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