HB371 Alabama 2020 Session

Summary

Primary Sponsor

Rex ReynoldsRepresentative

Republican

Session

Regular Session 2020

Title

Taxation, to update the dispursement of certain license taxes and registration fees, Sec. 40-12-270 am'd.

Summary

HB371 updates how motor vehicle license taxes and registration fees are distributed among the state, counties, and municipalities in Alabama.

What This Bill Does

It amends Section 40-12-270 to set new monthly rules for distributing the net proceeds from motor vehicle taxes. It establishes specific percentage splits between the State and counties, and between counties and municipalities, and it directs remaining funds to state programs and road work. It also creates and assigns oversight to the Secondary Road Committee to set criteria for road design and planning, with requirements for county plans and use of funds. The changes take effect October 1, 2020.

Who It Affects

• Counties and municipalities will receive defined shares of the motor vehicle tax proceeds under the new formulas, with county shares split between equal portions and population-based portions and municipalities getting distributions for local road projects within their counties.
• State agencies and programs (State Treasurer, Alabama Law Enforcement Agency Public Safety Fund, Department of Revenue for collection costs, and the Department of Transportation) will receive the remaining funds for debt service, road construction and maintenance, and related uses, under oversight by the Secondary Road Committee.

Key Provisions

• Amends Section 40-12-270 to update the monthly distribution of net proceeds from motor vehicle license taxes and registration fees.
• For the portion of net proceeds classified as additional amounts (Section 40-12-248), 64.75% goes to the State; 35.25% goes to counties, with 42.16% of the counties’ share allocated equally among the 67 counties and 57.84% allocated to counties by population.
• The remaining net proceeds after the above are distributed as follows: 72% to the State, 21% to the municipality where the owner resides or to the county of registration, and 7% apportioned to counties by vehicle registrations; within each county, 10% of the county share is distributed to municipalities in the county by population, with the remainder going to the county.
• Funds and uses: the State Treasurer distributes funds to the Public Road and Bridge Fund; a $1,200,000 portion goes to the Alabama Law Enforcement Agency for the Public Safety Fund; the rest covers Department of Revenue collection costs and other eligible uses; then priority is given to debt service and then to DOT road construction and maintenance, plus other lawful road and bridge uses.
• All moneys received by counties or municipalities under this section are to be used for public highways and streets (with certain administrative and debt-related allowances); counties may place proceeds into a special road fund, and may deposit funds into a Rural/Urban Road (RRR) fund under existing provisions; a Secondary Road Committee is created to set criteria and review county plans, with state approval of plans.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation