SB273 Alabama 2024 Session

Summary

Primary Sponsor

David SessionsSenator

Republican

Session

Regular Session 2024

Title

Sales and use tax, simplified sellers use tax, municipalities, distribution to be adjusted based on population adjusted for annexations annually based on report of U.S. Secretary of Commerce

Summary

SB273 would reshape how Alabama distributes the simplified sellers use tax by using annexation-adjusted population shares to allocate 60% of net proceeds to municipalities and 40% to counties, with quarterly distributions starting in 2024.

What This Bill Does

It amends Section 40-23-197 to set a 60/40 split of net SSUT proceeds after administrative costs and refunds, with 60% going to municipalities and 40% to counties, distributed quarterly. For municipalities, the population share used to determine their 60% portion would be adjusted annually to include population increases from annexations occurring between decennial censuses, and municipalities can request these adjustments by notifying the Department of Revenue and providing census blocks involved. Counties receive their 40% share based on population as determined by the most recent federal census prior to distribution. The act takes effect June 1, 2024.

Who It Affects

• Municipalities: would receive 60% of SSUT proceeds allocated by population shares, with those shares adjusted for annexations between decennial censuses; they can request annexation-based adjustments and must notify the Department of Revenue and provide relevant census blocks.
• Counties: would receive 40% of SSUT proceeds allocated by population shares based on the latest census; distributions occur quarterly.

Key Provisions

• Amends Section 40-23-197 to implement a 60% share of SSUT proceeds to municipalities and a 40% share to counties (after administrative costs and refunds).
• Municipality population shares shall be adjusted annually to include population increases from annexations that occur after the decennial census and before the next decennial census; municipalities may request such adjustments and must provide notice and census block information to the Department of Revenue.
• Counties receive 40% of the net SSUT proceeds, distributed to county general funds based on the population ratio from the most recent federal census prior to distribution.
• Distributions to counties and municipalities occur quarterly; effective date is June 1, 2024.

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 & Revenue