HB5 Alabama 2019 Session

Summary

Primary Sponsor

Tommy Hanes

Republican

Session

Regular Session 2019

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

HB 5 would add three new income tax refund check-off options allowing Alabama residents to designate funds to the State Parks Division, the Department of Mental Health, or the Alabama Medicaid Agency.

What This Bill Does

It lets filers choose to donate a specified amount of their refund to these programs, starting with the 2019 tax year. The donations go to the State Treasury and are distributed under the existing check-off framework (with administrative costs capped at 5%). For the mental health check-off, existing law provides that designated funds are split equally between two advocacy groups; the exact distribution for the new program check-offs follows the same overall framework. If a check-off fails to meet an average of $7,500 per year over three years, it will be removed from the tax forms for the following year. The act becomes law three months after the Governor signs it.

Who It Affects

• Alabama residents who file individual income tax returns, who can choose to donate part of their refund to the three programs.
• State Parks Division of the Department of Conservation and Natural Resources; Department of Mental Health; and Alabama Medicaid Agency, which would receive these designated contributions under the bill.

Key Provisions

• Adds a new income tax refund check-off option starting in 2019 for contributions to the State Parks Division, the Department of Mental Health, and the Alabama Medicaid Agency.
• Contributions are deposited with the State Treasurer and are subject to the existing distribution framework, with administrative costs not to exceed five percent of the contributions.
• If a check-off does not achieve an average annual gross contribution of $7,500 over a three-year period, its name is dropped from the tax return forms for the next tax year.
• Effective date: the act takes effect on the first day of the third month after it is passed and approved.

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