SB207 Alabama 2023 Session

Summary

Primary Sponsor

Randy PriceSenator

Republican

Session

Regular Session 2023

Title

Relating to taxation; to amend Section 40-18-140, Code of Alabama 1975, to provide an income tax refund check-off for a contribution to the State Parks Division of the Department of Conservation and Natural Resources, the Department of Mental Health, or the Alabama Medicaid Agency.

Summary

SB207 adds an income tax refund check-off option for contributions to the State Parks Division, Department of Mental Health, or the Alabama Medicaid Agency, starting with the 2024 tax year.

What This Bill Does

It amends Section 40-18-140 to allow Alabama residents to designate a portion of their tax refund to one of three programs beginning with 2024. Contributions are deposited with the State Treasurer and distributed to the receiving department or agency; mental health contributions are split evenly between the Alliance for the Mentally Ill of Alabama and Mental Health Consumers of Alabama. Administrative costs may not exceed 5% of the contributions. If a check-off averages less than $7,500 per year over a three-year period, the check-off can be removed from the tax forms. The bill also states that future check-offs enacted after 2006 will automatically receive a check-off box on tax forms without needing another amendment, and the act becomes effective on the first day of the third month after passage/approval.

Who It Affects

• Alabama resident individual income taxpayers who may choose to contribute a portion of their refund to the new programs starting in 2024
• The three recipient programs and their administering agencies (State Parks Division, Department of Mental Health, Alabama Medicaid Agency) and the Department of Revenue as the collecting/disbursing authority

Key Provisions

• Adds income tax refund check-offs for contributions to the State Parks Division, the Department of Mental Health, and the Alabama Medicaid Agency, starting with the 2024 tax year.
• Contributions are deposited with the State Treasurer and distributed to the designated department or agency; mental health contributions are split evenly between the Alliance for the Mentally Ill of Alabama and Mental Health Consumers of Alabama; administration costs not to exceed 5%.
• If a check-off average annual gross contributions fail to reach $7,500 over three consecutive years, the check-off is dropped from the state tax return forms.
• Future check-offs enacted after April 17, 2006 automatically receive a check-off box on tax forms without needing amendments to the law.
• The act becomes effective on the first day of the third month following its passage and approval by the Governor.

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