Simplified sellers use tax, distribution of local funds modified

This bill modifies how Alabama distributes local funds from the simplified sellers use tax, shifting the basis for allocation from the most recent federal decennial census to population projections updated every five years by the U.S. Census Bureau. The change directly affects counties and municipalities across the state by altering how they receive their share of tax proceeds, with the updated methodology beginning in 2027. Under the new system, 60% of local funds would go to municipalities and 40% to counties, with distribution ratios based on current population estimates rather than waiting for a full census. The bill also repeals existing provisions regarding the timing of tax distribution and sets the effective date for October 1, 2026.