Bill > HB480

This bill revises how the "simplified sellers use tax," a tax on online purchases collected by sellers, is distributed in Alabama, with changes taking effect on January 1, 2028. The bill reduces the percentage of tax proceeds allocated to the State General Fund from 75% to 37.5% and increases the allocation to the Education Trust Fund from 25% to 12.5%. It also reallocates a portion of the tax revenue to counties and municipalities, with 20% going to counties and 30% to municipalities, distributed based on population ratios. Importantly, both counties and municipalities are now required to distribute at least 40% of the funds they receive to their local school boards, unless they pass a resolution or ordinance before October 1, 2027, to distribute a portion of these proceeds to local education entities. The bill also changes the distribution frequency of these local proceeds from quarterly to monthly and repeals a previous law concerning monthly distributions of this tax.