Budget & Taxes in Alabama

passed · Alabama · Senate Mar 12, 2026

SB 359: Chambers County; ad valorem fire protection tax levied, opt-out for certain areas of county provided; constitutional amendment

This bill proposes a constitutional amendment to allow Chambers County, Alabama to levy a property tax specifically to support volunteer fire departments. The tax would apply to all real property in the county except in areas where paid fire departments already provide services, which can opt out by passing a local resolution. Collected funds would be distributed to volunteer fire associations based on the area they serve and could only be used for equipment, facilities, training, and operational costs, not salaries or administrative expenses. The amendment would be voted on by voters in a special election scheduled for November 2026.

Topics ✓ Budget & Taxes

Sub-Topics Property Tax

in committee · Alabama · House Mar 10, 2026

HB 599: Agriculture value chains; grants, funds, training by Agriculture Department for value chain infrastructure required

This bill requires Alabama's Department of Agriculture and Industries to create programs supporting farmers, ranchers, and agricultural cooperatives by providing grants for infrastructure like cold storage and processing equipment. It mandates the department to offer training in business development, food safety compliance, and direct sales strategies to eligible producers. The legislation also authorizes matching funds for marketing and market participation, grants for building regional food hubs and shared kitchens, and establishes a revolving loan fund for infrastructure investment. All funding programs are subject to future legislative appropriation and include cost-sharing requirements for applicants.

Topics ✓ Budget & Taxes

Sub-Topics Appropriations Tags Agriculture

in committee · Alabama · Senate Mar 5, 2026

SB 347: 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.

Topics ✓ Budget & Taxes

Sub-Topics Sales Tax

in committee · Alabama · House Mar 17, 2026

HB 566: Municipalities; business license for certain businesses in the building trade provided for

This bill allows Alabama municipalities to charge business licenses to certain construction and trade companies that work within city limits but do not have a permanent office there. It specifically targets licensed contractors such as electricians, plumbers, HVAC specialists, general contractors, and home builders who operate on temporary job sites. The law requires these businesses to either pay a flat fee or a percentage of their gross earnings from work done in the municipality, while also allowing them to avoid double taxation by excluding income already taxed in other municipalities. Additionally, the bill exempts these businesses from licensing requirements when working on county-owned projects like roads and bridges. The changes take effect on October 1, 2026.

Topics ✗ Budget & Taxes

Sub-Topics Business Taxes Tags Licensing Local Government

passed · Alabama · Senate Apr 2, 2026

SB 357: Macon County; local privilege tax on pari-mutuel activities, established

This bill establishes an 8% privilege tax on net gambling revenue from historical horse racing wagering on computerized machines in Macon County, Alabama. The tax would be collected by the Macon County Racing Commission from historical horse racing licensees and distributed according to local law. The legislation defines net gambling revenue as total wagering amounts excluding free bets, promotional credits, federal taxes, voided wagers, and prize payouts. This new tax replaces any existing local taxes on historical horse racing pari-mutuel activities but does not affect taxes on live greyhound and thoroughbred racing. The bill does not authorize any new gambling activities beyond what is currently permitted by law.

Topics ✗ Budget & Taxes

signed · Alabama · House Apr 13, 2026

HB 611: Winston County, lodging tax authorized, fire protection fee imposed, collection and distribution provided, referendum provided

This bill would allow Winston County to collect an eight percent lodging tax on overnight stays at hotels, motels, inns, and short-term rentals, with the tax paid by guests and collected by lodging providers. The collected funds would be distributed to road and bridge improvements, the sheriff's office for law enforcement, and the county general fund for tourism development and debt repayment on the judicial building and jail. Additionally, the bill imposes a five dollar per night fire protection fee on transient accommodations, with the proceeds distributed equally among volunteer fire departments in the county. Both the lodging tax and fire protection fee would only take effect if approved by voters in a referendum held during the next state or local election.

Topics ✓ Budget & Taxes ✓ Criminal Justice ✓ Transportation

Sub-Topics State Budget Corrections Law Enforcement Bridges Roads & Highways

in committee · Alabama · House Mar 3, 2026

HB 539: Abatements; local governments, power to abate revised

This bill requires that local governments in Alabama, including municipalities, counties, and public industrial authorities, must obtain approval from the Secretary of Commerce and the Governor before granting tax abatements for the state portion of certain taxes on industrial property. Under current law, local entities could abate both state and local taxes independently, but this legislation adds a state-level review process specifically for state tax abatements. The bill mandates that local governments submit written requests with details about the proposed tax reduction, duration, and financial analysis to the Secretary of Commerce, who will evaluate the project's return on investment and check for any prior defaults on economic agreements before recommending the abatement to the Governor. This change applies to abatements for construction-related transaction taxes and ad valorem taxes on private use industrial property, with specific provisions for data processing centers and technical corrections to existing tax abatement procedures. The new requirements take effect on October 1, 2026.

Topics ✗ Budget & Taxes

Sub-Topics Tax Incentives

died · Alabama · Senate Apr 7, 2026

SB 368: Rural Health Transformation Program supplemental appropriations for the fiscal year ending September 30, 2026

This bill allocates up to $203 million in federal funds from the Rural Health Transformation Program to Alabama's Department of Economic and Community Affairs for fiscal year 2026. The money is divided among ten specific health initiatives focused on rural areas, including electronic health records, workforce development, maternal health, cancer care, mental health services, and emergency medical response improvements. The bill also establishes rules for carrying over unspent funds to the next fiscal year and requires state officials to obtain federal approval before reallocating money between different program categories. These provisions aim to support ongoing healthcare infrastructure and services in rural Alabama communities while maintaining compliance with federal funding requirements.

Topics ✓ Budget & Taxes ✓ Healthcare ✓ Technology

Sub-Topics Mental Health Women's Health

signed · Alabama · House Apr 9, 2026

HB 565: Higher education, College and Higher Education Excellence and Results (CHEER) Act established, bonus funding for eligible institutions authorized based on achievement of performance goals and objectives

This bill creates the College and Higher Education Excellence and Results (CHEER) Act, which establishes a new funding mechanism for Alabama's public higher education institutions. The legislation creates a dedicated CHEER Fund that will provide bonus funding to colleges and universities that meet specific performance goals related to student outcomes such as retention, completion rates, and post-graduation employment in high-demand or high-wage fields. The bill defines eligible institutions to include all Alabama public universities and community colleges, and establishes an Outcomes-Based Higher Education Funding Coordinating Committee to set performance metrics and oversee fund distribution. Funding will be distributed by the Alabama Commission on Higher Education based on how well institutions perform against established benchmarks, with special provisions for premier research universities that demonstrate growth in external research revenue.

Topics ✓ Budget & Taxes ✓ Education

Sub-Topics Higher Education

in committee · Alabama · House Mar 11, 2026

HB 534: Mobile County; local privilege tax on historical horse racing, levied

This bill proposes a new 8% privilege tax on net gambling revenue from historical horse racing activities in Mobile County, Alabama. The tax would be collected from licensed historical horse racing operators by the Mobile County Racing Commission and distributed according to local laws. The legislation defines net gambling revenue as money received from wagers after excluding free bets, promotional credits, federal taxes, voided wagers, and prize payouts. This tax would replace any other local taxes currently applied to historical horse racing in the county but would not affect taxes on live greyhound or thoroughbred racing. The bill does not authorize any new gambling activities beyond what is already permitted by law and would take effect on October 1, 2026.

Topics ✓ Budget & Taxes

All budget & taxes bills