§ 40-25-23 — Disposition of Funds

Alabama § 40-25-23

• Jurisdiction: Alabama
• Title 40: Revenue and Taxation
• Ch. 25: Tobacco and Vaping Tax
• Art. 1: Sales Tax

Text

All revenues collected under the provisions of this article, except as otherwise provided, shall be paid to the Department of Revenue by check or draft made payable to the Treasurer of Alabama, and shall be distributed in the following manner:
(1) All of the revenue derived from the tax levied upon cigarettes by Sections 40-25-2 and 40-25-41 shall be deposited in the State Treasury and 38.82 percent of such revenue shall be divided as follows:
a. Six and six one-hundredths percent to the credit of the State Public Welfare Trust Fund, which is hereby appropriated for general welfare purposes. In this section, “general welfare purposes” means:
1. The administration of public assistance as set out in Sections 38-2-5 and 38-4-1;
2. Services, including supplementation and supplementary services under the federal Social Security Act, to or on behalf of persons to whom such public assistance may be given under Section 38-4-1;
3. Services to and on behalf of dependent, neglected, or delinquent children; and
4. Investigative and referral services to and on behalf of needy persons.
b. Nine and nine one-hundredths percent shall be set apart and used for the following purposes only and in the following order:
1. So much thereof as may be necessary for such purpose is hereby appropriated and shall be used by the State Treasurer to pay at their respective maturities the principal and interest that will mature during the then current fiscal year on all bonds at the time outstanding that may have been issued by the State Industrial Development Authority under the provisions of the following acts:
(i) Acts 1967, No. 231;
(ii) Acts 1971, No. 1420;
(iii) Acts 1973, No. 1039;
(iv) Acts 1975, No. 1217;
(v) Acts 1978, 2nd Ex. Sess., No. 99;
(vi) Acts 1981, No. 81-843;
(vii) Acts 1983, No. 83-925; and
(viii) Acts 1987, No. 87-550.
2. The balance thereafter remaining during each fiscal year shall be paid into a special fund in the State Treasury to be designated the “General and Mental Health Fund,” and is hereby appropriated and shall be distributed as follows:
(i) Thirty-six percent of the said balance shall be expended by the State Health Officer, with the approval of the state Board of Health, for salaries, other expenses and equipment purchases, incident to general health work;
(ii) Fifty-eight percent of the said balance shall be paid to the Department of Mental Health created in Chapter 50 of Subtitle 2 of Title 22, to be expended by the said department for such purposes as it may designate for the provision of mental health services; and
(iii) Six percent of said balance shall be paid to the Alabama Mental Health Board to be expended by said board for such purposes as it may designate for the provision of services to people with an intellectual disability.
c. Twelve and twelve one-hundredths percent shall be set apart and used for the following purposes only and in the following order:
1. So much thereof as may be necessary for such purpose is hereby appropriated to the purpose of acquiring and constructing mental health facilities in the state, and to that end shall be used by the State Treasurer to pay, at their respective maturities, the principal and interest that will mature during the then current fiscal year on whichever of the following may be issued:
(i) Any bonds of the state that may be issued for acquisition and construction of mental health facilities under Amendment 266 of the Constitution of Alabama; or
(ii) Any bonds that may be issued by the Alabama Mental Health Finance Authority under the provisions of Acts 1988, Act No. 88-475.
2. The balance thereafter remaining during each fiscal year shall be paid into a special fund in the State Treasury, designated the “General and Mental Health Fund,” and is hereby appropriated and shall be distributed as follows:
(i) Thirty percent of said balance shall be expended by the State Health Officer, with the approval of the state Board of Health, for salaries, other expenses, and equipment purchases incident to general health work; and
(ii) Seventy percent of the said balance shall be paid to the Department of Mental Health created in Chapter 50 of Subtitle 2 of Title 22, and shall be used by the said department for mental health purposes in the state.
d. Six and six one-hundredths percent shall be set apart and used for the following purposes only and in the following order:
1. So much thereof as may be necessary for such purposes is hereby appropriated and shall be used by the State Treasurer to pay, at their respective maturities, the principal and interest that will mature during the then current fiscal year on all bonds that may be issued by the State Parks Development Authority under the provisions of Acts 1967, No. 272, which provided for the creation of said authority and also provided for the submission of a constitutional amendment to authorize the issuance of general obligation bonds by said authority.
2. The balance thereafter remaining during each fiscal year shall be deposited into a special fund in the State Treasury to be designated the “State Parks Fund” and is hereby appropriated and shall be distributed as follows: Said fund may be expended by the State Director of Conservation at his discretion and with the approval of the Governor for salaries, other expenses, land acquisitions, equipment purchases, capital additions or improvements, or other lawful expenses relating to the state division of parks, monuments, and historical sites.
e. Sixty-six and sixty-seven one-hundredths percent to the credit of the General Fund.
(2) The remaining 61.18 percent of the revenue derived from the tax levied on cigarettes by Sections 40-25-2 and 40-25-41 shall be deposited into the State Treasury and allocated as follows:
a. Up to $2 million received annually shall be allocated to the various counties of the state levying a cigarette tax to offset the administrative expenses of obtaining local stamps to affix to cigarettes sold in their jurisdiction for the purpose of collecting their local cigarette tax and to provide a discount to wholesalers and jobbers for affixing such stamps. These funds shall be distributed by the Comptroller pro rata based on the actual administrative expenses reported to the Comptroller by the counties at the conclusion of each quarter of the fiscal year. The Comptroller shall insure that such funds are distributed as soon as possible following the receipt of such reports. Failure of any county to submit such a report shall not prohibit the Comptroller from distributing funds to the remaining counties.
b. Remaining revenues to the General Fund to be used for Medicaid services.
(3) All of the revenue derived from the tax levied by Sections 40-25-2 and 40-25-41 upon tobacco products other than cigarettes shall be deposited in the State Treasury to the credit of the State General Fund.

Legislative History

(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §741; Acts 1955, 2nd Ex. Sess., No. 73, p. 188, §2; Acts 1959, 2nd Ex. Sess., No. 101, p. 318, §3; Acts 1965, No. 654, p. 1177, §3; Acts 1967, No. 230, p. 599; Acts 1967, No. 275, p. 784, §3; Acts 1967, No. 309, p. 850, §3; Acts 1969, No. 168, p. 453; Acts 1969, No. 551, p. 1034, §3; Acts 1971, No. 1402, p. 2362; Acts 1973, No. 819, p. 1285; Acts 1973, No. 1021, p. 1558; Acts 1975, No. 1175, p. 2306; Acts 1978, 2nd Ex. Sess., No. 100, p. 1813; Acts 1981, 3rd Ex. Sess., No. 81-1141, p. 419; Acts 1983, 4th Ex. Sess., No. 83-922, p. 202; Acts 1984, No. 84-309, p. 684, §2; Acts 1987, No. 87-554, p. 857; Acts 1988, No. 88-78, p. 79; Acts 1988, No. 88-476, p. 749; Act 99-650, 2nd Sp. Sess., p. 96, §1; Act 2004-545, p. 1157, §1.)