HB212 Alabama 2022 Session

Updated Feb 26, 2026

Notable

Summary

Primary Sponsor: Reed IngramRepresentative
Republican
Session: Regular Session 2022
Title: Prattville, taxation, distribution of certain sales and use tax proceeds revised, Elmore County Commission to remit certain lodging tax proceeds to the City of Prattville, Secs. 45-1A-43, 45-26-246.05 am'd.
Summary: HB212 reorganizes how Prattville’s Elmore County sales tax and lodging tax proceeds are distributed and allows the county to send lodging tax funds to Prattville for economic development.
What This Bill Does
Adds an extra general sales and use tax in the Elmore County portion of Prattville to make the tax rate in that area equal to the rest of Prattville, with certain exclusions (autos, manufacturing machinery, farm machinery, and vending sales). Distributes the new sales tax receipts: 50% to the Elmore County General Fund (10% for area improvements) and 50% to the City of Prattville General Fund (10% for area improvements). If there are remaining funds in a special improvement fund, 50% goes to Prattville and 50% to the Elmore County Commission for capital improvements or economic development in the Prattville area; expenditures require county notification to Prattville; unspent funds by September 30, 2024 are split 50/50 between Prattville and the county; related funds are abolished after all money is spent (by October 31, 2024). Authorizes the Elmore County Commission to remit a portion of lodging tax proceeds to Prattville, with 33% of lodging tax proceeds distributed to Prattville for economic development under an agreement, or revert to the lodging fund if no agreement exists, and 67% of remaining lodging tax funds used by the county for economic development.

Who It Affects
Group 1: Residents and businesses in the Elmore County portion of Prattville who would pay the new additional general sales and use tax (with specified exclusions) and whose tax revenues will be allocated to county and city funds for improvements and development.
Group 2: The Elmore County Commission and the City of Prattville (including Prattville City Council) responsible for collecting, distributing, and using the tax proceeds for improvements and economic development, and for coordinating use of lodging tax funds.

Key Provisions
§45-1A-43: Creates an additional general sales and use tax in Prattville’s Elmore County areas to equalize tax rates, excluding autos, manufacturing machinery, farm machinery, and vending; funds split 50% Elmore County General Fund (10% for area improvements) and 50% City of Prattville General Fund (10% for area improvements).
§45-1A-43: Special fund balance distribution—50% to Prattville, 50% to Elmore County Commission for improvements/economic development; county must notify Prattville City Council before expenditures; unexpended funds by Sept. 30, 2024 to be remitted 50/50 to City and County; remaining funds after 2024 to be handled per stated rules.
§45-1A-43: Abolishment of special funds upon expenditure, no later than Oct. 31, 2024.
§45-26-246.05: Lodging tax proceeds—balance deposited into Elmore County Lodging Fund; 67% used for economic development by the county; 33% distributed to municipalities where the tax was collected for economic development under an agreement; if no agreement, that portion reverts to the lodging fund; all net room-fee proceeds go to the lodging fund.
§45-26-246.05: The 33% portion for City of Prattville can be remitted to Prattville for economic development no more than 30 days after the act’s effective date.
Section 2: Effective date—becomes law on the first day of the month after the Governor signs or otherwise approves.

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