Senate Bill 347 Alabama 2026 Session

Updated Mar 5, 2026

Notable

Summary

Primary Sponsor: Greg AlbrittonSenator
Republican
Session: 2026 Regular Session
Title: Simplified sellers use tax, distribution of local funds modified
Summary: SB347 would change how local shares of Alabama's simplified sellers use tax are distributed by using five-year population projections instead of the latest decennial census.
What This Bill Does
It changes the basis for allocating the county and municipal shares to use Census Bureau population projections from the Population and Housing Estimates Program, updated every five years. The overall funding split remains the same: 50% to the State Treasury (75% of that to the General Fund and 25% to the Education Trust Fund) and 25% to counties and 25% to municipalities, but the local shares will now be calculated using projections. It repeals the current timing provision (Section 40-23-197.1) and sets an effective date of October 1, 2026, with distributions to counties and municipalities scheduled by the administering department.

Who It Affects
Counties: will receive shares based on five-year population projections instead of the latest census counts.
Municipalities: will receive shares based on five-year population projections instead of census counts.
State budget (General Fund and Education Trust Fund): continues to receive its portion, but the basis for local-share calculations shifts to projections.
Department administering the tax program: will oversee and schedule distributions as prescribed.

Key Provisions
Amends Section 40-23-197 to base county and municipal distributions on Census Bureau population projections updated every five years (not the most recent decennial census).
Repeals Section 40-23-197.1 (timing of distribution).
Maintains the overall funding split: 50% to the State Treasury (75% General Fund, 25% Education Trust Fund) and 25% to counties and 25% to municipalities, with local shares calculated using projections.
Effective date: October 1, 2026.
Distribution timing to counties/municipalities will be set by the department (schedule to be determined).

AI-generated summary using openai/gpt-5-nano-2025-08-07 on Mar 5, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Taxation & Revenue