House Bill 480 Alabama 2026 Session

Summary

Primary Sponsor

Chris EnglandRepresentative

Democrat

Session

2026 Regular Session

Title

Simplified sellers use tax, distribution of local proceeds revised

Summary

HB480 would require Alabama counties and municipalities to pass through a portion of Simplified Sellers Use Tax proceeds to local boards of education, changing how the money is distributed and repealing the prior monthly-distribution rule, with the new system taking effect in 2028.

What This Bill Does

It amends SSUT distribution rules to allocate funds to local boards of education in each jurisdiction. It requires counties and municipalities to pass through a minimum share (and allows more via local resolutions) to the local boards of education, and it repeals the existing monthly distribution statute. It also reorganizes how remaining SSUT money is split among state funds and local governments, with distributions to be handled monthly/quarterly by the department. The act becomes effective January 1, 2028.

Who It Affects

• Counties and municipalities are required to allocate part of their SSUT proceeds to the local boards of education serving their area and must ensure minimum pass-throughs to those boards.
• Local boards of education receive funding from SSUT through the pass-throughs from counties and municipalities, supporting their students.

Key Provisions

• Amends Section 40-23-197 to require counties and municipalities to allocate a portion of SSUT proceeds to local boards of education.
• Repeals Section 40-23-197.1, eliminating the monthly distribution framework.
• Imposes a minimum pass-through (40%) of county/municipal SSUT shares to local boards of education, with monthly distributions under the Department's rules and population-based allocation.
• Allows counties or municipalities to adopt resolutions (by Oct 1, 2027) to direct more proceeds to local boards of education serving the county/municipality.
• For tax periods beginning on/after Jan 1, 2019, net proceeds are distributed between municipalities and counties on a 60/40 basis.
• Effective date of the act is January 1, 2028.

AI-generated summary using openai/gpt-5-nano on Feb 19, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation & Revenue