Alabama HB431 levies a tax on carbon dioxide storage wells and distributes the tax revenue between the state and local governments.

Alabama HB431 introduces a tax on carbon dioxide storage wells, defined as any well or underground space used for injecting or storing carbon dioxide. The tax rate is based on the gross value of the stored carbon dioxide and is remitted monthly to the Department of Revenue. Half of the collected tax revenue is deposited into the State General Fund, while the other half is allocated to the county where the carbon dioxide was stored, and further distributed to municipalities within that county. The bill also allows the department to adopt rules for administering this tax.

Alabama HB431 levies a tax on carbon dioxide storage wells and distributes the tax revenue between the state and local governments.

Alabama HB431 introduces a tax on carbon dioxide storage wells, defined as any well or underground space used for injecting or storing carbon dioxide. The tax rate is based on the gross value of the stored carbon dioxide and is remitted monthly to the Department of Revenue. Half of the collected tax revenue is deposited into the State General Fund, while the other half is allocated to the county where the carbon dioxide was stored, and further distributed to municipalities within that county. The bill also allows the department to adopt rules for administering this tax.