SB334 Alabama 2025 Session

Updated Feb 23, 2026

Notable

Summary

Primary Sponsor: Tim MelsonSenator
Republican
Session: 2025 Regular Session
Title: Lauderdale County, sales and use tax further provided for
Summary: The bill creates a dedicated Shoals Economic Development Fund for Lauderdale County sales and use tax proceeds and sets a monthly distribution formula to local economic development entities starting in 2025.
What This Bill Does
It requires sales and use tax proceeds to be deposited into a separate Lauderdale County fund. Beginning October 1, 2025, after deducting collection costs and allowable expenses, the money is transferred to the Shoals Economic Development Fund within 30 days and then allocated as follows: 1) an amount equal to one-twelfth of Colbert County’s total contributions to Shoals ED in the previous fiscal year; 2) 55% of the remaining funds to the Lauderdale County Commission for county economic development; 3) 45% of the remaining funds to the City of Florence for economic development. The funds must be used for purposes described in Subpart 2 of the relevant code sections. The act becomes effective June 1, 2025.

Who It Affects
Lauderdale County residents and the Lauderdale County Commission (economic development funding and programs).
City of Florence residents and City of Florence government (economic development funding and projects).
Colbert County (future distribution depends on Colbert County’s prior-year contributions to Shoals ED).
Shoals Economic Development Fund, and the committee/authority that administers it (management and use of funds for approved development activities).

Key Provisions
Creates a separate Shoals Economic Development Fund funded by Lauderdale County sales and use tax proceeds.
Requires monthly transfers to the Shoals ED Fund starting within 30 days of receipt, after deducting costs of collection and allowable expenses.
Distributes the funds as: (a) 1/12 of Colbert County’s prior-year contributions to Shoals ED; (b) 55% of the remainder to Lauderdale County Commission for county economic development; (c) 45% of the remainder to the City of Florence for economic development.
Restricts fund use to purposes described in Subpart 2 of Part 2, Chapter 17, and related sections.

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