HB435 Alabama 2021 Session

Summary

Primary Sponsor

Mary MooreRepresentative

Democrat

Co-Sponsor

John W. Rogers

Session

Regular Session 2021

Title

Jefferson Co., sales and use tax, co. commission authorized to levy, distrib. for education and for community service grants

Summary

HB435 changes how Jefferson County’s sales and use tax money is distributed by setting a fixed priority and annual caps for debt service, county funds, and local programs.

What This Bill Does

It establishes a sequence for monthly tax proceeds: first covering refunding school warrant debt service; then allocating up to $36,300,000 to the county general fund; then up to $18,000,000 to the 2015 Sales Tax Fund; then up to $3,600,000 to the Jefferson County Community Service Fund (after bonds are repaid); then up to $2,000,000 to the Birmingham-Jefferson County Transit Authority for the first 10 years (and up to $1,000,000 thereafter); then up to $500,000 to Birmingham Zoo; and finally the remaining funds go to the county general fund. The Community Service Fund funds are to be spent under provisions in another section. The act becomes effective on the first day of the third month after governor approval.

Who It Affects

• Jefferson County residents and taxpayers, because the county’s sales tax revenue will be allocated through a fixed, prioritized schedule that determines how funds are used for debt service, general government operations, and local programs.
• Specific local agencies and programs (debt service for warrants, General Fund, 2015 Sales Tax Fund, Community Service Fund, Transit Authority, and Birmingham Zoo) that would receive set maximum annual allocations or discretionary funds under the bill.

Key Provisions

• Amends Section 45-37-249.08 to set the distribution priorities for Jefferson County's sales and use tax proceeds.
• Provision (1): First priority is to pay debt service on refunding school warrants, with funds segregated and not available for general county expenses.
• Provision (2): Second priority deposits remaining proceeds up to $36,300,000 per fiscal year into the county general fund for discretionary use by the county commission.
• Provision (3): Third priority deposits remaining proceeds up to $18,000,000 per fiscal year into the 2015 Sales Tax Fund for distribution as provided in Section 45-37-249.09.
• Provision (4): Fourth priority deposits remaining proceeds up to $3,600,000 per fiscal year into the Jefferson County Community Service Fund, to be spent as allowed by Section 45-37-249.10, with the note that after bond repayment, $3.6 million must still be deposited annually.
• Provision (5): Fifth priority deposits remaining proceeds up to $2,000,000 per fiscal year to the Birmingham-Jefferson County Transit Authority for the first 10 fiscal years after adoption, then up to $1,000,000 per year thereafter.
• Provision (6): Sixth priority deposits remaining proceeds up to $500,000 per fiscal year to Birmingham Zoo, Inc.
• Provision (7): Seventh and final priority deposits remaining proceeds into the county general fund for discretionary use.
• Provision (b): All amounts in provisions (1) through (6) must be paid in full as long as tax proceeds are sufficient.
• Section 2 provides the act’s effective date: the first day of the third month after the governor’s approval.

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

Subjects

Jefferson County