House Bill 434 Alabama 2026 Session

Summary

Primary Sponsor

Chris EnglandRepresentative

Democrat

Session

2026 Regular Session

Title

Simplified sellers use tax, distribution of proceeds revised

Summary

HB434 would shift SSUT proceeds by reducing the Education Trust Fund’s share and increasing funding to local boards of education, while eliminating the current monthly distribution mechanism, with the change taking effect October 1, 2026.

What This Bill Does

It changes how the simplified sellers use tax proceeds are allocated among state funds, local boards of education, counties, and municipalities. The Education Trust Fund would receive a smaller portion, and local boards of education would receive a larger portion of the SSUT proceeds. It repeals the current monthly distribution rule and replaces it with a new distribution framework administered by the department; the department would retain funds needed for administrative costs and refunds.

Who It Affects

• Local boards of education in Alabama would receive a larger share of SSUT proceeds, supporting local K-12 funding.
• The Education Trust Fund would receive a reduced share of SSUT proceeds, affecting state education funding.

Key Provisions

• Section 40-23-197 is amended to reduce the Education Trust Fund share of SSUT distributions and reallocate that portion to the local boards of education; the department retains funds for administrative costs and refunds; the balance is distributed to state funds and local entities.
• Repeals Section 40-23-197.1, which governs monthly distributions of SSUT proceeds.
• Effective date: October 1, 2026.

AI-generated summary using openai/gpt-5-nano on Feb 12, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation & Revenue