Alabama 2022 Regular Session

Alabama Senate Bill SB309

Introduced
3/10/22  
Refer
3/10/22  
Engrossed
3/29/22  
Refer
3/29/22  

Caption

Colbert Co., severance tax proceeds, 7.5 percent for railway overpass in City of Sheffield and 7.5 percent for broadband, tax applied on all severed material, regardless of mode of transportation, const. amend.

Impact

The bill sets a tax rate of eight cents per ton on severed materials and mandates that the net proceeds from this tax be allocated to the Colbert County Commission. The funds are intended for the construction, maintenance, and repair of infrastructure, such as roads, along with other local projects as stipulated by law. This new financial mechanism is designed to enhance the county's revenue base while directing funds to critical local needs, including infrastructure development and potentially broadband expansion.

Summary

Senate Bill 309 proposes a local constitutional amendment for Colbert County, Alabama, concerning the severance tax on materials removed from the county. It aims to broaden the application of the severance tax so that it encompasses all severed materials sold as tangible personal property, without regard to how they are transported. This change allows for taxes to be levied on materials that are transported beyond county lines and ensures that the tax applies uniformly regardless of the delivery method, which is a shift from existing provisions that didn’t cover transportation on public roads.

Contention

Though the bill passed with unanimous support in voting, debates surrounding it may arise from concerns about how the tax revenue will be utilized and whether it might place additional burdens on producers within the county. Stakeholders may argue about the overall effectiveness of the severance tax in achieving its intended purposes versus the possible negative implications for local businesses dealing with heightened taxation. Moreover, further discussions might focus on the amendment's adequacy in addressing the disbursement of funds to prioritize essential community projects effectively.

Companion Bills

No companion bills found.

Previously Filed As

AL HB330

Alabama Lead Ban Act; percentages of lead that constitute "lead-free" revised; city and county plumbing codes required to conform; certain applications exempted

AL HB451

Taxation; establishes Alabama Broadband Investment Maximization Act; exempts purchase of broadband equipment and supplies from sales and use tax

AL HB303

Ad valorem taxes, reimbursement of taxes for 100 percent disabled veteran to date of determination

AL HB486

Baldwin County, ad valorem tax further provided for, constitutional amendment

AL HB548

Taxation; establishes Alabama Broadband Investment Maximization Act; exempts ADECA project funded or administered purchases from sales and use tax

AL SB11

Motor vehicles; additional license tax and registration fee; distribution of proceeds to the Alabama Public Transportation Trust Fund

AL HB253

Taxation; certain aircraft and aircraft parts are exempt from sales, use, and lease taxes

AL SB175

Taxation; certain aircraft and aircraft parts are exempt from sales, use, and lease taxes

AL HB372

Elmore County; to levy a county rental tax; provide distribution of proceeds from tax

AL HB74

Taxation, sales tax exemptions, sales and use tax exemption provided for purchases of optical aids, including eyeglasses and contact lenses

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