SB323 Alabama 2024 Session

Summary

Primary Sponsor

Randy PriceSenator

Republican

Session

Regular Session 2024

Title

Taxation, counties prohibited from distributing proceeds from certain taxes to certain entities

Summary

SB323 prevents counties from distributing tobacco tax proceeds to foreclosed or bankrupt entities, requires escrow for misallocated funds, and sunsets the rule in 2026.

What This Bill Does

If passed, counties cannot give tobacco tax proceeds to any entity whose property has been foreclosed or that has declared bankruptcy. If proceeds are already appropriated to such an entity but not distributed, they must be placed in a county escrow account until they can be given to a valid recipient. The law takes effect immediately and automatically ends on January 1, 2026.

Who It Affects

• County commissions and county governments that collect tobacco-related taxes and distribute proceeds; they must comply with the prohibition and escrow requirements.
• Entities whose property has been foreclosed or that have declared bankruptcy; they are restricted from receiving tobacco tax proceeds under this act.

Key Provisions

• Prohibits county commissions from distributing proceeds from county tobacco taxes to any entity whose property is foreclosed or that has declared bankruptcy.
• If proceeds are appropriated to an ineligible entity but not distributed, they must be deposited into an escrow account within the county until they can be reallocated to an eligible recipient.
• The section creating these rules is repealed on January 1, 2026 (sunset).
• The act takes effect immediately.

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