HB198 Alabama 2022 Session

Summary

Primary Sponsor

Debbie Wood

Republican

Session

Regular Session 2022

Title

Taxation, check-off contribution to State Park Division of the Department of Conservation and Natural Resources, Department of Mental Health or the Alabama Medicaid Agency, Sec. 40-18-140 am'd.

Summary

HB198 would add a new income tax refund check-off allowing Alabama residents to donate part of their refund to the State Parks Division, the Department of Mental Health, or the Alabama Medicaid Agency, starting in 2023.

What This Bill Does

It creates a new check-off on the state individual income tax return for three programs starting in 2023, letting taxpayers designate an amount (rounded to whole dollars) to contribute. The contributions, after up to 5% administration costs, are deposited with the State Treasurer and distributed to the chosen program. If three years after adoption the average annual contributions fall short of $7,500 for the following three-year period, the check-off could be removed from the tax forms.

Who It Affects

• Alabama resident individual income taxpayers who file a return and may choose to donate part of their refund to one of the three programs.
• The State Parks Division (Department of Conservation and Natural Resources), the Department of Mental Health, and the Alabama Medicaid Agency would receive designated funds from the check-off to support their programs.

Key Provisions

• Adds a new income tax refund check-off beginning in the 2023 tax year for contributions to the State Parks Division, the Department of Mental Health, or the Alabama Medicaid Agency.
• Taxpayers may designate an amount on their return, rounded to whole dollars, to be credited to the chosen program.
• Contributions are deposited with the State Treasurer and distributed to the designated program after administrative costs to the Department of Revenue do not exceed five percent; distribution follows the statutory framework for check-offs.
• If three years after adoption the program fails to average $7,500 in annual contributions for the subsequent three-year period, its check-off name will be dropped from the tax forms and the authorization repealed.
• Future check-offs listed on the tax form can appear automatically without needing amendment to the statute (no separate legislative action required for new check-offs).
• The act becomes effective on the first day of the third month after the Governor signs it into law.

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

Subjects

Taxation