HB 240 provides $16.3 million from Alabama's Education Trust Fund to Tuskegee University for the 2027 fiscal year to support its educational programs and operations. The bill requires Tuskegee to submit an operations plan and audited financial statements before funds are released, along with quarterly spending reports and a final year-end performance report. At least $2 million of the appropriation must be used for agricultural research and extension services. This funding supports Tuskegee University as a state-supported institution with a unique historical relationship to Alabama, distinct from public universities or private colleges.
HB 190 extends Alabama's Railroad Rehabilitation Tax Credit program through 2032, increasing the annual credit cap from $3.7 million to $4.5 million and raising the per-mile credit amount from $3,500 to $4,100. It directly affects railroad companies owning or leasing track in Alabama by allowing them to claim tax credits covering 50% of eligible rehabilitation costs, with credits transferable at 85% value. The program is funded through sales tax revenues in the Education Trust Fund, with specific annual limits on total credits issued across the extended period.
HB 331 increases Blount County's lodging tax from 4% to 5% of room charges for short-term stays (under 30 days) and authorizes an additional $3 per room per night tax. It affects hotels, motels, and similar lodging businesses in Blount County that rent to transients. The tax will be collected like the state lodging tax, with proceeds deposited into the county tourism fund to support tourism promotion, park maintenance, beautification projects, and covered bridge upkeep. The bill takes effect October 1, 2026.
HB 321 allows Marshall County to annex new areas into existing volunteer fire districts and clarifies who pays a fire service fee. It defines "dwelling" to include mobile homes, tiny homes (under 500 sq ft), and recreational vehicles connected to utilities, and "business property" to cover structures used for commerce. The bill requires property owners in fire districts to pay the fee, adds late-payment penalties and collection fees, and directs the revenue commissioner to collect payments and report on fee assessments. This affects residential and business property owners within Marshall County fire district boundaries.
This bill requires Alabama tax officials to issue a "tentative certificate" to disabled veterans with a 100% VA disability rating who provide proof of their rating, a home purchase agreement, and an affidavit confirming the property will be their primary residence. It prohibits lenders and settlement agents from including homestead property taxes in these veterans' debt-to-income ratio calculations when processing mortgage applications. The certificate allows eligible veterans - who already qualify for homestead tax exemptions under existing law (Sections 40-9-19/21) - to avoid having their property tax burden counted toward loan eligibility. This change directly affects disabled veterans with 100% VA disability ratings seeking home loans in Alabama.
HB 133 revises how Lamar County distributes revenue from its one-cent privilege license tax. The bill amends an existing law to clarify that the state may charge up to 5% of collected taxes for administrative services, and it changes the distribution: half of the tax revenue must go to Lamar County's public schools, while the other half is allocated for road construction and maintenance (with one-fourth per commissioner's district). This affects Lamar County taxpayers and directly impacts the county's school funding and infrastructure budgets. The changes update outdated language in the original 1977 law but do not alter the tax rate or overall revenue amount.
HB 210 proposes a constitutional amendment for Fayette County, Alabama, allowing residents aged 65 or older to claim a property tax exemption on their primary residence. To qualify, seniors must own a single-family home as their principal residence for at least five years prior to claiming the exemption, which freezes the property’s assessed value at the prior year’s level. The exemption requires written application to Fayette County’s Revenue Commissioner between October 1 and December 31, 2027, and remains in effect as long as the property continues as the owner’s primary residence. This change does not affect millage rates or other existing exemptions like the homestead exemption.
SB 123 exempts retail sales of unmanufactured fish or seafood directly sold by anglers or fishermen (defined as "producers") from Alabama's state sales and use tax. It also allows counties and municipalities to choose to exempt these same sales from local sales taxes through a local resolution or ordinance. The bill applies only to seafood in its original, unprocessed state sold at retail by the producer, not to restaurants or processors. The exemption would take effect on September 1, 2026.
HB 250 amends Alabama's tax code to exclude employer contributions to "Trump Accounts" from an individual's gross income and makes permanent the existing exclusion for employer-paid qualified education loan payments. The bill directly affects Alabama taxpayers who receive these employer benefits, as it prevents these amounts from being counted as taxable income. Key provisions include updating Section 40-18-14 to add Trump Account contributions to the list of excluded items and removing the temporary nature of the education loan exclusion. This creates a permanent tax advantage for workers receiving these specific employer benefits under Alabama law.
SB 143 removes the expiration date (August 31, 2028) for three assessments on nursing home beds in Alabama, making them permanent. These include a supplemental privilege assessment, a secondary supplemental privilege assessment, and a monthly surcharge per bed. The bill ensures nursing facilities will continue paying these costs, and they remain fully included in Medicaid reimbursement rates for nursing homes. This directly affects all Alabama nursing facilities participating in Medicaid, as their reimbursement rates will continue to account for these assessments.
