Alabama 2022 Regular Session

Alabama Senate Bill SB242

Introduced
2/22/22  
Refer
2/22/22  
Engrossed
3/1/22  
Refer
3/1/22  
Enrolled
3/3/22  
Chaptered
3/3/22  

Caption

Morgan Co., simplified sellers use tax, distribution of the proceeds for public schools and volunteer fire depts, retroactive application, const. amend.

Impact

This bill will significantly affect how tax revenues from the simplified sellers use tax are allocated in Morgan County. By prioritizing education and fire protection funding, the bill aims to enhance local resources for these critical sectors. The allocation methodology based on school enrollment attempts to ensure a fair distribution of funds according to the actual needs of the school systems in the county. This approach may promote educational equity and support for vital fire services, which are crucial for community safety.

Summary

Senate Bill 242 aims to amend the Alabama Constitution regarding the distribution of proceeds from the simplified sellers use tax specifically for Morgan County. The proposed amendment outlines that after retaining five percent for administrative purposes, the remainder of the funds should be allocated as follows: 85% to local education boards based on school enrollment figures, 13.5% directly to the Morgan County Board of Education, and 1.5% to certified volunteer fire departments within the county. The bill also stipulates that these changes would be retroactively applied to funds dating back to October 1, 2019.

Sentiment

The sentiment around SB242 has been largely supportive, particularly among local education advocates and those involved with fire departments. The emphasis on directing funds to both education and emergency services has been positively received, as it addresses key community needs. However, as with many legislative efforts involving tax distribution, there may be some apprehension regarding long-term financial implications and whether the funds will adequately meet the growing demands of these services in the future.

Contention

Despite general support, there are underlying tensions regarding potential concerns of fund adequacy and the impacts on local government budgets in other areas not addressed by this amendment. Opponents may argue that committing a significant portion of tax revenues to education and fire departments restricts flexibility in addressing broader county needs. The bill's retroactive application may also raise questions about the allocation of previously collected funds, potentially leading to disputes over fiscal management and prioritization of community services.

Companion Bills

No companion bills found.

Previously Filed As

AL HB17

Simplified sellers use tax, rate increased, distribution of proceeds.

AL HB36

Simplified sellers use tax, additional tax levied, distribution of proceeds provided

AL SB273

Sales and use tax, simplified sellers use tax, municipalities, distribution to be adjusted based on population adjusted for annexations annually based on report of U.S. Secretary of Commerce

AL SB107

Sales and use tax, simplified sellers use tax (SSUT), recalculation of distributions based on annexations, deannexations, or incorporations, on fifth year after release of census commencing on January 1, 2026

AL HB258

Simplified Sellers Use Tax; to levy an additional amount based on current sales tax rates to be distributed to municipalities and counties.

AL HB364

Simplified sellers use tax, marketplace facilitator further defined to exclude local delivery services

AL HB270

Tax delinquent properties, provides for distribution of excess funds from certain tax sale, actions to foreclose and quiet title, public auction demanded and distribution of proceeds, distribution of surplus proceeds, limited application of act.

AL HB581

Morgan County, distribution of county's TVA in-lieu-of-taxes payments further provided for

AL HB72

Motor vehicles, firefighter distinctive license plate for volunteer and professional firefighters, fee increased, distribution of funds

AL HB24

Covington County, court costs, Legislature may fix amounts and provide for distribution of revenue, constitutional amendment

Similar Bills

No similar bills found.