Alabama HB434 revises the distribution of simplified sellers use tax proceeds, reducing the Education Trust Fund allocation and reallocating those.

Alabama HB434 modifies the distribution of proceeds from the simplified sellers use tax (SSUT). Under the bill, the portion of SSUT proceeds previously allocated to the Education Trust Fund is reduced. These funds are instead reallocated to local boards of education based on average daily membership. The bill also adjusts the distribution to municipalities and counties, ensuring funds are allocated proportionally according to population. The changes take effect for tax periods beginning on or after January 1, 2019, with the act becoming effective on October 1, 2026.

Alabama HB434 revises the distribution of simplified sellers use tax proceeds, reducing the Education Trust Fund allocation and reallocating those.

Alabama HB434 modifies the distribution of proceeds from the simplified sellers use tax (SSUT). Under the bill, the portion of SSUT proceeds previously allocated to the Education Trust Fund is reduced. These funds are instead reallocated to local boards of education based on average daily membership. The bill also adjusts the distribution to municipalities and counties, ensuring funds are allocated proportionally according to population. The changes take effect for tax periods beginning on or after January 1, 2019, with the act becoming effective on October 1, 2026.