SB363 Alabama 2021 Session

Summary

Primary Sponsor

Clay Scofield

Republican

Session

Regular Session 2021

Title

Taxation, sales tax revenue, distribution and expenditure of further provided, Sec. 40-23-35 am'd.

Summary

SB363 changes how sales tax discount revenues are distributed by removing the year-to-year formula and capping the amount, to provide more predictable General Fund funding.

What This Bill Does

It eliminates the existing distribution formula for revenues from the sales tax discount and sets a fixed maximum, increasing certainty for deposits into the General Fund. After paying the Department of Revenue’s administrative expenses, the remaining proceeds would be allocated to specific recipients: a fixed portion to the 67 counties for health and extension services, funds to the Department of Human Resources for general welfare programs, and funds to the Department of Conservation and Natural Resources for state parks capital projects funded by the cap increase. Starting in 2021, park funding is set at 7.5 million dollars per year (with CPI adjustments beginning in 2022). Remaining funds would go to the Education Trust Fund, with certain vapor-product receipts directed to the State General Fund.

Who It Affects

• Local governments: the 67 Alabama counties receive a fixed total distribution (with distribution between population-based and equal shares) to support county health services and extension services.
• State government and funds: the Department of Revenue (administrative funding), the Department of Human Resources (general welfare programs), the Department of Conservation and Natural Resources (state parks capital outlay funded by the cap), and the Education Trust Fund (remaining proceeds), plus certain vapor-product receipts directed to the State General Fund.

Key Provisions

• Eliminate the existing sales tax discount revenue distribution formula and cap the revenues at a specified maximum to provide certainty for deposits into the General Fund.
• Amend Section 40-23-35 to define the order and amounts of distributions from tax receipts: first cover Department of Revenue expenses, then allocate $378,000 to the 67 counties, $1,322,000 to the Department of Human Resources, and funds to the Department of Conservation and Natural Resources for capital outlay for state parks (sourced from the cap increase).
• Beginning October 1, 2021, allocate $7,500,000 to the Department of Conservation and Natural Resources for state parks capital outlay, with annual CPI-based adjustments starting October 1, 2022.
• After the above allocations, remaining proceeds are to be paid into the Education Trust Fund, with certain vapor-product receipts going to the State General Fund.

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