Budget & Taxes (Revenue)

HB 142 would allow Class 2 municipalities in Alabama to include up to 50% of their total equalized taxable property value in tax increment districts, instead of the current 10% limit. This change aligns Class 2 cities with the existing 50% cap already permitted for Class 3 municipalities. Tax increment districts are tools for funding economic development projects by using increased property tax revenue from designated areas. The bill specifically amends Section 11-99-4 of Alabama law to adjust this property value threshold for Class 2 municipalities. This policy change directly affects Class 2 cities seeking to expand economic development funding through tax increment financing.

SB 152 increases the administrative funding for Alabama's food stamp program from 5% to 7.5% of statewide benefits issued, directly affecting the Department of Human Resources (DHR). It also changes how the Children's Health Insurance Program (CHIP) is funded by removing its requirement to be prioritized against use tax revenue, instead allowing other state revenue sources to support CHIP. The bill amends specific sections of Alabama law to adjust the distribution of sales and use tax funds, ensuring DHR receives a fixed annual amount for food stamp administration while providing flexibility for CHIP funding. These changes are limited to administrative adjustments in tax fund allocation, with no new program benefits or eligibility changes.

HB 326 expands tax exemptions for Alabama Masonic lodges. It adds all subordinate lodges under the Prince Hall Grand Lodge and the regular Grand Lodge to existing state tax exemptions, covering sales, county, and municipal fees until September 2027. Local governments may also choose to exempt these groups from local sales taxes. Lodges must annually report all subordinate locations to the state revenue department.

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 The changes update outdated language in the original 1977 law but do not alter the tax rate or overall revenue amount.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 3 exempts state sales and use taxes on fresh, unprocessed fish or seafood sold directly by anglers or fishermen (defined as "producers" in the bill). This applies only to retail sales of seafood in its original, unmanufactured state. Local counties and municipalities may choose to also exempt these sales from local taxes, but only if they adopt a specific resolution or ordinance. The exemption takes effect on September 1, 2026.