HB421 Alabama 2025 Session

Summary

Primary Sponsor

Frances Holk-JonesRepresentative

Republican

Session

2025 Regular Session

Title

Baldwin County, further provides for the distribution of the proceeds of the special privilege license tax

Summary

HB421 would allow Baldwin County municipalities with a municipal school board to opt in to share in the county's special privilege license tax proceeds, with distributions based on local tax collections starting October 1, 2025.

What This Bill Does

The bill adds a new section that lets eligible municipalities choose, by resolution, to share in the proceeds of the special county privilege license tax. If a municipality opts in, it would receive a pro rata share of the portion of the tax proceeds that is distributed to the Baldwin County Board of Education, based on the amount of tax collected within the municipality's boundaries. This changes how tax revenues are distributed, potentially increasing municipal funding while tying shares to local tax collection, with the law taking effect on October 1, 2025.

Who It Affects

• Municipalities within Baldwin County that have a municipal school board: may elect to participate and would receive a pro rata share of the Board of Education’s portion based on local tax collections.
• Baldwin County Board of Education and the county's tax distribution system: would distribute a portion of the proceeds to participating municipalities, potentially reducing the share kept by the Board of Education as those funds are allocated to municipalities.

Key Provisions

• Adds Section 45-2-244.078 allowing Baldwin County municipalities with a municipal school board to elect, by resolution, to share in the proceeds of the special county privilege license tax.
• If elected, the municipality receives a pro rata share of the portion of the tax proceeds distributed to the Baldwin County Board of Education under Section 45-2-244.077, based on tax collected within the municipality's corporate boundaries; the act becomes effective October 1, 2025.

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

Subjects

Baldwin County