SB5 Alabama 2021 1st Special Session

Summary

Primary Sponsor

Garlan GudgerSenator

Republican

Session

First Special Session 2021

Title

Community Development District, adjust rate of taxation on sale of alcholic beverages, Sec. 35-8B-1 am'd.

Summary

SB5 would raise the alcohol tax in Alabama community development districts from the beer-and-wine rate to the liquor rate, with updated language and distributions to counties.

What This Bill Does

The bill amends Section 35-8B-1 so that sales of alcoholic beverages inside a community development district are taxed at the county rate equal to the liquor tax in the largest municipality in the county, instead of the beer-and-wine rate. Tax revenues from these districts would be distributed to the counties as described in Section 35-8B-5, and any TVA in-lieu-of-taxes payments would be offset as specified. It also includes nonsubstantive, technical updates to modernize the code language. The change applies to the various types of community development districts defined in the statute and would take effect on the first day of the third month after passage and governor’s approval.

Who It Affects

• County governments and local tax authorities, who would collect and distribute the new liquor-rate alcohol tax revenues from community development districts and manage related offsets.

Key Provisions

• Amends Section 35-8B-1 to set the sale of alcoholic beverages in a community development district at the county liquor tax rate (as charged in the largest municipality in the county) rather than the beer-and-wine tax rate.
• Tax revenues from alcohol sales in community development districts must be distributed under Section 35-8B-5, with TVA in-lieu-of-taxes offsets applied as described in the bill.
• Makes nonsubstantive, technical revisions to update the code language to current style.
• Effective date: the act takes effect on the first day of the third month after passage and approval by the Governor.

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

Subjects

Community Development Districts