SB258 Alabama 2020 Session

Summary

Primary Sponsor

Bobby D. SingletonSenator

Democrat

Session

Regular Session 2020

Title

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

Summary

SB258 changes how motor vehicle license taxes and registration fees are distributed and creates new road funding oversight and planning requirements.

What This Bill Does

It rewrites the monthly distribution of net proceeds from motor vehicle taxes and fees to specify new shares for the state, counties, and municipalities. It details how the counties' share is split between equal allocations to all counties and allocations based on population, and how the remaining funds flow to the state, municipalities, and specific state programs. It creates the Secondary Road Committee to set criteria and standards for high-density roads and recreational access roads, requires county plans to be approved by the DOT, and requires funds be kept in separate county funds; it also clarifies the effective date of Oct 1, 2020.

Who It Affects

• State and local governments (State Treasurer, Alabama Law Enforcement Agency, Department of Revenue, and the counties and municipalities) — changes how money from motor vehicle taxes and fees is distributed, with new share percentages and flows to various state funds and local units.
• County and municipal governments (county commissions, county engineers, municipal treasurers) — must follow new distribution rules, use funds for road/highway purposes, submit plans to the DOT for approval, and operate under new oversight and reporting requirements.

Key Provisions

• Amends Section 40-12-270 to redefine how net proceeds from motor vehicle license taxes and registration fees are disbursed.
• Distributions to the State Treasurer and then to the State, counties, and municipalities are specified with detailed percentage splits (e.g., 64.75% to the State, 35.25% to counties; within counties, 42.16% equal among counties and 57.84% by population; 72% of the residue to the State, 21% to municipalities, 7% to counties by vehicle counts).
• A $1,200,000 annual amount from state distributions is set to ALEA for the Public Safety Fund; the remainder funds the Department of Revenue’s collection expenses and other state uses.
• The funds directed to counties and municipalities must be used exclusively for construction, improvement, and maintenance of highways or streets, including related administrative costs and debt service.
• For counties, additional uses from related funds are authorized for high-density roads and certain recreation access roads, with specific constraints and a new Secondary Road Committee to oversee criteria, design standards, and project approval.
• Creation of the Secondary Road Committee, with specific members, duties to publish criteria and standards, and requirements for counties to submit approved plans to the DOT Director.
• Funds distributed to counties are kept in a special fund and are not commingled with other county funds, with optional transfer into a county’s RRR fund under existing law.
• Effective date: October 1, 2020.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation