HB369 Alabama 2025 Session

Summary

Primary Sponsor

Troy StubbsRepresentative

Republican

Session

2025 Regular Session

Title

Elmore County; creates the Enhance Elmore Fund; levies a county sales and use tax

Summary

HB369 creates the Enhance Elmore Fund and imposes a new Elmore County sales and use tax to fund infrastructure and economic development.

What This Bill Does

Starting September 1, 2025, Elmore County will levy a county sales and use tax. The Revenue Commissioner will calculate the tax rate for each area (incorporated areas and unincorporated areas) using specified formulas and publish the rates by August 1, 2025; if a calculation is negative, no tax applies in that area. The tax proceeds go into the Enhance Elmore Fund, with 90% dedicated to infrastructure and 10% to economic development. The act also creates annual reporting on deposits and expenditures, and it allows withholding of funds from a fire department that fails to report, with withheld funds reallocated to public safety programs. Machinery and equipment covered by another state sales tax are exempt from this tax.

Who It Affects

• Residents and businesses in Elmore County will pay the new county sales and use tax, with rates varying by incorporated vs. unincorporated areas starting September 1, 2025.
• Incorporated areas and police jurisdictions within the county have separate rate calculations that may affect how much tax is paid there.
• Unincorporated areas of the county have their own rate calculation, which may differ from incorporated areas.
• Elmore County Firefighter's Association and local fire departments are affected by funding rules and annual reporting requirements, including monitoring and potential withholding of funds for non-reporting.
• Local government and public safety entities benefit from the fund's infrastructure and public safety funding, subject to annual reporting and allocation rules.

Key Provisions

• Creates the Enhance Elmore Fund in the county treasury to receive and allocate tax proceeds.
• Imposes a county sales and use tax beginning September 1, 2025, with rates calculated by the Revenue Commissioner and published by August 1, 2025.
• Uses area-specific rate formulas for incorporated areas (including police jurisdictions) and unincorporated areas, tying rates to state, county, and municipal tax rates and capping negatives (no tax if the calculation is negative).
• Exempts machinery and equipment subject to the sales tax under Section 40-23-37 from the new county tax.
• Directs that 90% of tax proceeds go to infrastructure and 10% to economic development through the Enhance Elmore Fund.
• Requires an annual report detailing deposits and expenditures, published on the county commission’s website by January 31 of each year.
• Requires by January 15 each year a report from the Elmore County Firefighter's Association on fund expenditures to fire departments; allows withholding and reallocation of funds for non-reporting.
• Allows rate adjustments if underlying state or local rates change, with notice of new rate adjustments published.
• Effective date of the act is June 1, 2025, with the tax starting September 1, 2025.
• Applies only to Elmore County.

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