HB219 Alabama 2021 Session

Summary

Primary Sponsor

Kyle South

Republican

Session

Regular Session 2021

Title

Coal severance tax (1971 tax), extended to 2031, distribution of certain additional tax revenue beginning 2020-2021, remainder after certain distribution earmarked for Surface Mining Commission, Secs. 40-13-6, 40-13-8 am'd.

Summary

HB219 extends Alabama's coal severance tax to 2031, updates how extra tax revenue is distributed, and earmarks remaining funds for the Surface Mining Commission.

What This Bill Does

- Extends the coal severance tax to Oct 1, 2031 unless the Legislature acts to extend it again. - Changes and clarifies how additional severance tax revenue is distributed, including allocations to statewide funds, counties, and various development and community groups. - Sets aside and allocates funds from the Alabama State Docks Bulk Handling Facility Trust Fund to the Alabama Mining Academy, local governments, and development associations, with specific annual amounts and formulas. - Establishes formulas and minimums for county distributions based on coal produced, and creates a special 75/25 split if coal for shipping was loaded in another county. - Requires annual audits of foundations receiving funds and keeps a separate Surface Mining Commission operations fund funded from remaining revenue.

Who It Affects

• Coal producers and other taxpayers who pay the severance tax, as the tax rate and duration are extended and revenue distributions change.
• Counties, municipalities, and development organizations receiving severance tax distributions and the general fund allocations (e.g., Tuscaloosa County General Fund, Jefferson County General Fund, Walker County EDA, and various boards, libraries, schools, and community foundations).

Key Provisions

• Amends 40-13-6 and 40-13-8 to provide for distribution of additional severance tax revenue and to earmark the balance for the Surface Mining Commission.
• Extends the tax termination date to 2031 (unless extended by the Legislature).
• Requires transfers from the Alabama State Docks Bulk Handling Facility Trust Fund to the Alabama State Docks Department and the Alabama Mining Academy, and then to counties and development/community groups per set formulas (with Jefferson County receiving a fixed $500,000 and Walker County at least $100,000).
• Establishes annual and, starting in certain years, continuing distributions to specific counties based on coal tonnage produced, including minimums and pro rata adjustments when funds are insufficient.
• For fiscal years 2020-2021 and later, defines an additional distribution mechanism where 75% of the extra distribution goes to the county where coal was severed and 25% to the county where it was loaded if loaded elsewhere.
• Allocates funds to the Tuscaloosa County General Fund, Board of Education, Public Library, and Towns (Brookwood, Vance, Coaling, Coker, Lakeview) with specified amounts and prorating rules when funds are insufficient.
• Requires annual audits of recipient foundations/associations and reporting to the Legislature.
• Creates a dedicated funding stream from remaining revenue to the Surface Mining Commission.

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

Subjects

Coal