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HB480 INTRODUCED
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HB480
NRVGY8T-1
By Representative England
RFD: Fiscal Responsibility
First Read: 19-Feb-26
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NRVGY8T-1 02/11/2026 MRF (F)MRF 2026-842
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First Read: 19-Feb-26
SYNOPSIS:
Under existing law, the proceeds from the
simplified sellers use tax (SSUT) are distributed to
the State General Fund, Education Trust Fund, and the
counties and municipalities in this state.
This bill would require each county and
municipality to distribute a portion of SSUT proceeds
to the local boards of education serving students in
the respective jurisdictions.
A BILL
TO BE ENTITLED
AN ACT
Relating to the simplified sellers use tax; to amend
Section 40-23-197, Code of Alabama 1975, to require each
county and municipality to allocate a portion of its
simplified sellers use tax proceeds to the local boards of
education ; and to repeal Section 40-23-197.1, Code of Alabama
1975, regarding monthly distributions of simplified sellers
use tax proceeds.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 40-23-197, Code of Alabama 1975, is
amended to read as follows:
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amended to read as follows:
"§40-23-197
(a) The proceeds of the simplified sellers use tax paid
pursuant to this part shall be appropriated to the department,
which shall retain the amount necessary to fund the
administrative costs of implementing and operating the program
and to cover the amounts paid for refunds authorized in
Section 40-23-196. The balance of the amounts collected shall
be distributed as follows:
(1) FiftyThirty-seven and one-half percent to the State
Treasury and allocated 75 percent to the State General Fund .
and
(2) 25 Twelve and one-half percent to the State
Treasury and allocated to the Education Trust Fund.
(2)(3)a. Twenty-five percent Twenty percent to each the
county counties in the state and deposited into the general
fund of the respective county commission on thea prorated
basis according of the ratio of the to population of each
county to the total population of all counties in the state as
determined in the most recent federal census prior to the
distribution.
b.1. On a monthly basis, each county commission shall
distribute a minimum of 40 percent of the proceeds received
pursuant to this subdivision to the local boards of education
serving any portion of the county in the same manner as
countywide taxes are apportioned pursuant to Section 16-13-31.
2. The distribution required by subparagraph 1. shall
not apply to any county where the county commission has
adopted a resolution, prior to October 1, 2027, to distribute
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adopted a resolution, prior to October 1, 2027, to distribute
a portion of these proceeds to the local boards of education
that serve the county.
(3)(4)a. Twenty-five Thirty percent of funds to be
distributed to each the municipality municipalities in the
state on a prorated the basis of the ratio of the according to
population of each municipality to the total population of all
municipalities in the state as determined in the most recent
federal census prior to the distribution.
b.1. On a monthly basis, each municipal governing body
shall distribute a minimum of 40 percent of the proceeds
received pursuant to this subdivision to the local boards of
education serving any portion of the municipality in the same
manner as countywide taxes are apportioned pursuant to Section
16-13-31.
2. The distribution required by subparagraph 1. shall
not apply to any municipality where the municipal governing
body has adopted an ordinance, prior to October 1, 2027, to
distribute a portion of these proceeds to the local boards of
education that serve the municipality.
(b) Effective for tax periods beginning on or after
January 1, 2019, the net proceeds after the distribution
provided in subdivision (1) of subsection (a) shall be
distributed 60 percent to each municipality in the state on a
basis of the ratio of the population of each municipality to
the total population of all municipalities in the state as
determined in the most recent federal census prior to
distribution and 40 percent to each county in the state, and
deposited into the general fund of the respective county
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deposited into the general fund of the respective county
commission, on a basis of the ratio of the population of each
county to the total population of all counties in the state as
determined in the most recent federal census prior to the
distribution.
(c) The distribution of the proceeds from the
simplified sellers use tax distributed pursuant to
subdivisions (a)(3) through (4) paid to counties and
municipalities shall occur quarterly monthly in a manner
prescribed by the department."
Section 2. Section 40-23-197.1, Code of Alabama 1975,
regarding monthly distributions of simplified sellers use tax
proceeds, is repealed.
Section 3. This act shall become effective on January
1, 2028.
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