SB107INTRODUCED
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SB107
RAP5YYN-1
By Senators Sessions, Williams
RFD: Finance and Taxation General Fund
First Read: 05-Feb-25
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5 RAP5YYN-1 07/31/2024 FC (L)ma 2024-2043
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First Read: 05-Feb-25
SYNOPSIS:
Under existing law, a percentage of the net
proceeds from the simplified sellers use tax (SSUT) is
distributed to municipalities. The distribution of the
net proceeds is based on 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.
This bill would provide for the purposes of the
distribution of the net proceeds from the SSUT to
municipalities, that the population of a municipality,
under certain circumstances, may be adjusted every
fifth year after the release of a federal decennial
census upon the submission of the required
documentation to the Department of Revenue.
A BILL
TO BE ENTITLED
AN ACT
Relating to Simplified Sellers Use Tax (SSUT); to add
Section 40-23-197.2 to the Code of Alabama 1975, to provide
for the recalculation of the distribution of the proceeds to
municipalities as a result of annexation, deannexation, or
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municipalities as a result of annexation, deannexation, or
incorporation.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 40-23-197.2 is added to the Code of
Alabama 1975, to read as follows:
ยง40-23-197.2
(a) A municipality may submit required documentation to
request a recalculation of the municipal distribution of the
proceeds provided for in Section 40-23-197(b) based on a
change in population of the municipality as a result of an
annexation, deannexation, or incorporation. The recalculation
of the municipal distribution shall take effect on January 1
of the fifth year after the release of the most recent federal
decennial census, with the first recalculation to be performed
on January 1, 2026. A municipality shall submit the
documentation required in subsections (b) and (c) by the
preceding October 1 to be included in the January 1
recalculation.
(b) In the event of a change in population due to an
annexation or deannexation for a municipality occurring
between the most recent federal census used in Section
40-23-197, the updated population may be included in the
distribution if the following certified documents are provided
to the department:
(1) A copy of the annexation or deannexation resolution
with the legal description of the area and its associated
population impact.
(2) Except in the case of an annexation by consent or
an act of the Legislature or a deannexation by consent, a copy
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an act of the Legislature or a deannexation by consent, a copy
of the notice of election and corresponding probate
declaration of election results by the probate court.
(3) A copy of the information submitted for inclusion
in the U.S. Census Bureau Boundary and Annexation Survey.
(c)(1) In the event of an incorporation of a
municipality pursuant to Article 1, Chapter 41, Title 11,
occurring between the most recent federal decennial census
used in Section 40-23-197, a newly incorporated municipality
may be included in the distribution provided under Section
40-23-197(b) if the following certified documents are provided
to the department:
a. A copy of the petition of incorporation and required
documents filed with the judge of probate of the county where
the property is situated.
b. A copy of the notice of election and corresponding
election results.
c. A copy of the completed census as ordered by the
judge of probate.
d. A copy of the elected officers and their contact
information.
(2) The distribution shall be determined by the census
population from the census ordered by the judge of probate.
(d) This section shall not apply to municipalities
subject to Section 11-41-7.
(e) The department may request additional documentation
as needed to verify the true and correct census data. The
census population recalculation used for the distribution
shall prevail until after the next federal decennial census
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shall prevail until after the next federal decennial census
and shall not be otherwise altered.
(f) The department shall notify the requesting
municipality of the determined population to be used in the
distribution as provided under this section.
(g) The department may adopt rules for the
implementation and administration of this section.
Section 2. This act shall become effective immediately.
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