SB335 Alabama 2019 Session

Summary

Primary Sponsor

Linda Coleman-MadisonSenator

Democrat

Session

Regular Session 2019

Title

Taxation, gas tax proceeds, percentage distributed to counties with population greater than 600,000, distribution alt., Act 329 of 1969 Reg. Sess., amend.

Summary

SB 335 changes how Alabama distributes state gasoline tax proceeds to counties with 600,000+ people and their municipalities using a new tiered formula.

What This Bill Does

The bill amends Act 1969-329 to alter how highway gasoline tax proceeds are allocated among counties with 600,000+ residents and the municipalities within those counties. It introduces a multi-step distribution: an initial fixed portion to the county, then a remainder distributed between the county and municipalities based on population, with caps at $6,000,000 and $6,500,000 and an additional $500,000 to the county once the total exceeds $6,000,000; if there is still more, the excess above $6,500,000 is divided between the county and municipalities by population. This distribution replaces the previous method under Section 5 of the Highway Gasoline Tax Distribution Act, with the State Treasurer handling allocations to the county official for prompt distribution. The act becomes effective immediately after the Governor signs it or it otherwise becomes law.

Who It Affects

• Counties in Alabama with a population of 600,000 or more: their share of state gas tax proceeds will follow the new tiered distribution.
• Incorporated municipalities located within those counties: their share will be determined after the county’s initial payment, based on population ratios.
• County governments and officials (e.g., Probate Judge) who receive and distribute the funds within each county, and the State Treasurer who allocates the funds to those officials.
• Residents of the affected counties may experience changes in how revenue from the gas tax is distributed to local governments.

Key Provisions

• Amends Act 1969-329 Section 3 to change the distribution of gasoline excise tax proceeds to counties with 600,000+ population and the municipalities within those counties.
• Establishes a four-part distribution: (a) an initial fixed portion paid to the county; (b) remainder distributed between county and municipalities based on the population ratio of unincorporated area to total county population, with adjustments if the total amount is above $6,000,000; (c) if total > $6,000,000, the first $500,000 of the excess goes to the county; (d) if total > $6,500,000, the excess above $6,500,000 is distributed to county and municipalities by population ratio.
• The distribution is made in lieu of the Section 5 distribution under the Highway Gasoline Tax Distribution Act, with the State Treasurer allocating funds to the county official for prompt distribution to the county and its municipalities.
• Effective date: immediately following passage and governor approval, or as otherwise provided by law.

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