Bill > HB17

This bill amends existing Alabama law to increase the simplified sellers use tax rate from 8% to 9.25% and changes the distribution of the tax proceeds. Specifically, it allocates 50% of the 8% portion to the State General Fund and Education Trust Fund, and the remaining 1.25% portion to local boards of education based on average daily school enrollment. The bill also clarifies that the simplified sellers use tax replaces any additional state or local sales and use taxes on the transaction, and that the eligible seller is only required to report and remit the tax at the 9.25% rate statewide without providing locality-specific information. The bill is set to take effect on September 1, 2024.