HB600 By Representatives Poole, McCampbell, England, Harper, South and Wingo RFD Tuscaloosa County Legislation Rd 1 05-MAY-15

A BILL TO BE ENTITLED AN ACT

Relating to Tuscaloosa County; to amend Sections 1, 3, 4, and 11 of Acts 1953, No. 56, 1953 Regular Session, as amended by Act 94-535, 1994 Regular Session (Acts 1994, p. 976) and Act 94-554, 1994 Regular Session (Acts 1994, p. 1010), which authorized the levy and collection of certain sales and use taxes in the county; to increase the taxes and change the distribution of the proceeds of the taxes; to add Section 11A to create the Tuscaloosa County Road Improvement Commission with powers to make appropriations from certain taxes received pursuant to the act; and to bind itself to make future appropriations.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:

Section 1. Sections 1, 3, 4, and 11 of Acts 1953, No. 56, 1953 Regular Session, as amended by Act 94-535, 1994 Regular Session (Acts 1994, p. 976) and Act 94-554, 1994 Regular Session (Acts 1994, p. 1010), are amended to read as follows:

"Section 1.

"The following words and phrases shall have the following meanings:

"(1) CITY. The City of Tuscaloosa in the state.

"(2) CITY BOARD OF EDUCATION. The Tuscaloosa City Board of Education.

"(3) CITY OF NORTHPORT. Is specifically identified when included.

"(4) COMMISSION. The Tuscaloosa County Road Improvement Commission created by Section 11A.

"(5) COUNTY. Tuscaloosa County in the state.

"(6) COUNTY BOARD OF EDUCATION. The Tuscaloosa County Board of Education.

"(7) HOSPITAL AUTHORITY. The DCH Regional Health Care Authority.

"(8) MAXIMUM RATE.

"a. For purposes of Sections 3A and 4A of this act, maximum rate means a rate equal to the highest rate of sales or use tax now or hereafter levied by the city or by the City of Northport within their respective corporate limits, whichever is greater, at the date of enactment of this amendatory act or at any time thereafter, provided, however, that the maximum rate shall not decrease as a result of a decrease in the rate of sales and use tax levied by the city or by the City of Northport.

"b. All references in this act to the police jurisdiction or corporate limits of a municipality shall mean and refer to the municipality's police jurisdiction or corporate limits, respectively, as now or hereafter constituted.

"(9) NET DISTRIBUTABLE AMOUNT. The amount of taxes collected under this act and distributable to the recipients under subsection (a) of Section 11 less the amounts distributed under subdivision (2) of subsection (a) of Section 11 and less the amounts distributed under subdivision (1) of subsection (a) of Section 11 to the extent the amounts distributed under subdivision (1) of subsection (a) of Section 11 to a recipient are in excess of the amount that would have been distributed to the same recipient under subdivisions (3) to (8), inclusive, of subsection (a) of Section 11 had no amounts been distributed under subdivision (2) of subsection (a) of Section 11.

"(10) OBLIGATIONS. Warrants, bonds, notes, certificates, refunding warrants, refunding bonds, refunding notes, refunding certificates, and any other obligations for the payment of money issued by the state, the county, the hospital authority, a municipality located in the county, or any other recipient of taxes collected under this act.

"(11) QUARTERLY PERIOD. Each period of three calendar months commencing on each January 1, April 1, July 1, and October 1.

"(12) STATE. The State of Alabama.

"(13) STATE SALES TAX STATUTES. The provisions of Article 1, Chapter 23, Title 40, Code of Alabama 1975, as amended from time to time.

"(14) STATE USE TAX STATUTES. The provisions of Article 2, Chapter 23, Title 40, Code of Alabama 1975, as amended from time to time.

"(15) TAX BOARD. The Tuscaloosa County Special Tax Board created in Section 9.

"(16) THIS ACT. Act No. 56, 1953 Regular Session, as heretofore and as hereby amended.

"(17) TUSCALOOSA COUNTY LEGISLATIVE DELEGATION. Those members of the Legislature elected to represent some portion of the county.

"(18) Pronouns include all genders.

"(19) Those words and phrases used in Sections 3 and 3A of this act that are defined in the state sales tax statutes shall have the meanings respectively given them in the state sales tax statutes. Those words and phrases used in Sections 4 and 4A of this act that are defined in the state use tax statutes shall have the meanings respectively given them in the state use tax statutes.

"Section 3.

"There is hereby levied in the county, in addition to all other taxes of every kind now imposed by law, and shall be collected as herein provided, a privilege or license tax against the person on account of the business activities and in the amount to be determined by the application of rates against gross sales, or gross receipts, as the case may be, as follows:

"(a) Upon every person, firm, or corporation (including the University of Alabama, and all other institutions of higher learning in the county, whether such institutions be denominational, state, county, or municipal institutions, and any association or other agency or instrumentality of such institutions) engaged, or continuing within the county, in the business of selling at retail any tangible personal property whatsoever, including merchandise and commodities of every kind and character (not including, however, bonds or other evidences of debts or stocks), an amount equal to three percent of the gross proceeds of sales of the business, except where a different amount is expressly provided herein. Any person engaging or continuing in business as a retailer and wholesaler or jobber shall pay the tax required on the gross proceeds of retail sales of such business at the rates specified, when his books are kept to show separately the gross proceeds of sales of each business, and when the books are not so kept, shall pay the tax as a retailer on the gross sales of the entire business.

"(b) Upon every person, firm, or corporation engaged, or continuing within the county, in the business of conducting, or operating, places of amusement or entertainment, billiard and poolrooms, bowling alleys, amusement devices, musical devices, theaters, opera houses, moving picture shows, vaudevilles, amusement parks, athletic contests, including wrestling matches, prizefights, boxing, and wrestling exhibitions, football, basketball, and baseball games (including athletic contests conducted by or under the auspices of any educational institution, or any athletic association thereof, or other association whether the institution or association is a denominational, state, county, or municipal institution, or association, or a state, county, or city school or other institution, association, or school), skating rinks, racetracks, golf courses, or any other place at which any exhibition, display, amusement, or entertainment is offered to the public or place or places where an admission fee is charged, including public bathing places and public dance halls of every kind and description within the county, an amount equal to three percent of the gross receipts of any such business.

"(c) Upon every person, firm, or corporation engaged or continuing within the county in the business of selling at retail any automotive vehicle, truck trailer, or semitrailer, an amount equal to three-quarters of one percent of the gross proceeds of the sale of the automotive vehicle, truck trailer, or semitrailer. Where any used automotive vehicle, truck trailer, or semitrailer is taken in trade, or in a series of trades, as a credit or part payment on the sale of a new or used vehicle, the tax levied herein shall be paid on the net difference, that is, the price of the new or used vehicle sold less the credit for the used vehicle taken in trade.

"(d) Upon every person, firm, or corporation engaged or continuing within the county in the business of selling at retail machines used in mining, quarrying, compounding, processing, and manufacturing of tangible personal property an amount equal to one and one-eighth of one percent of the gross proceeds of the sale of such machines. The term machines, as used herein, shall include machinery which is used for mining, quarrying, compounding, processing, or manufacturing tangible personal property, and the parts of such machines, attachments, and replacements therefor, which are made or manufactured for use on or in the operation of such machines and which are necessary to the operation of such machines and are customarily so used.

"Each exemption provided for in the state sales tax statutes, shall, during the period of time when such exemption shall be effective in the statutes, be applicable to the tax levied in this section. In the event of the repeal of the state sales tax statutes, the exemptions effective therein immediately prior to any repeal shall thereafter be applicable to the tax levied in this section. In addition thereto, and except as expressly enumerated hereinabove, there are hereby exempted from the tax levied in this section the gross receipts or gross proceeds of any business engaged in by any city or town in Tuscaloosa County. In the absence of any express provision herein to the contrary, all provisions and procedures with respect to the application for and issuance of licenses, the making of returns or reports, the contents of returns or reports, collection and payment of taxes, keeping of records, reporting and paying taxes with respect to sales on credit, determination of the amount of the tax due, penalties, assessments, notices, and examinations of taxpayers and their books provided for in the state sales tax statutes with respect to the tax levied in those statutes shall be applicable to the tax levied in this section, excepting however, the procedure for appeals from assessments, and such appeals shall be made as hereinafter set forth. Any procedure or provisions involving the State Department of Revenue which is incorporated herein by reference to the state sales tax statutes shall be deemed to apply, with respect to the tax levied in this section, to the tax board. Every person, firm, or corporation engaged in any business upon which the tax levied in this section is imposed shall add the tax herein levied to the sales and admission price with respect to which the tax is levied and shall collect the same from the purchaser.

"(e) The sale of school lunches sold by all public and private schools in Tuscaloosa County, Alabama, is expressly exempted.

"Section 4.

"(a) An excise tax is imposed on the storage, use, or other consumption in the county of tangible personal property purchased at retail on or after the effective date of the act amending this subsection, for storage, use, or other consumption in the county at the rate of three percent of the sale price of such property, regardless of whether the retailer who made the sale is or is not engaged in business in the county, except as provided in subsections (b) and (c).

"(b) An excise tax is imposed on the storage, use, or other consumption in the county of any automotive vehicle, truck trailer, and semitrailer purchased at retail, on or after the effective date of the act amending this subsection, for storage, use, or other consumption in the county at the rate of three-quarters of one percent of the sales price of such automotive vehicle, truck trailer, or semitrailer.

"(c) An excise tax is imposed on the storage, use, or other consumption within the county of any machines used in mining, quarrying, compounding, processing, and manufacturing of tangible personal property, purchased at retail on or after the effective date of the act amending this subsection, at the rate of one and one-eighth of one percent of the sales price of any such machine. The term machine, as used herein, shall include machinery which is used for mining, quarrying, compounding, or processing, or manufacturing tangible personal property, and parts of such machines, attachments, and replacements therefor, which are made or manufactured for use on or in the operation of such machines and which are necessary to the operation of such machines and are customarily so used.

"(d) Every person storing, using, or otherwise consuming in the county, tangible personal property purchased at retail shall be liable for the tax imposed by this section, and the liability shall not be extinguished until the tax has been paid; provided, however, that a receipt from a retailer maintaining a place of business in the county, showing that the property in question was purchased at retail from the retailer and the tax levied in Section 3 has been paid with respect to the purchase at retail of such property shall be sufficient to relieve the purchaser from further liability for a tax under this section with respect to the use, storage, or consumption of the property. Each exemption provided for in the state use tax statutes, during the period of time when such exemption shall be effective in the statutes, shall be applicable to the tax levied in this section. In the event of the repeal of the state use tax statutes, the exemptions effective therein immediately prior to any such repeal shall thereafter be applicable to the tax levied in this section. All provisions and procedures with respect to the filing of returns, collections, and payment of taxes, keeping of records, making of reports, determination of the amount of the tax due, penalties, assessments, notices, examinations of tax payers and their books provided in the state use tax statutes, with respect to the tax levied in those statutes, shall be applicable to the tax levied in this section excepting, however, the procedure for appeals from assessments, and such appeals shall be made as hereinafter set forth. Any procedure or provisions involving the State Department of Revenue which is incorporated herein by reference to the state use tax statutes shall be deemed to apply, with respect to the tax levied in this section to the tax board.

"Section 11.

"(a) Any and all expenses, including (but without limitation to) salaries, office rent, and other expenses that may be necessary to provide for the collection and distribution of the taxes herein levied as may be authorized or approved by the tax board, shall be deducted by the tax board and paid out of the proceeds from collections under this act before any distribution of proceeds. Provided, however, that under no circumstances shall the funds held or collected pursuant to Sections 3A and 4A of this act be commingled with other funds held or collected by the tax board, but shall be separately invested and accounted for and all the expenses shall be charged against the proceeds distributed to each recipient in proportion to the amount of proceeds distributed. After deduction of expenses, the tax board shall distribute the remaining proceeds from the taxes collected under this act as follows:

"(1) No later than November 30 of each fiscal year, sums sufficient to satisfy all pledges of tax proceeds collected under this act that were entered into on or before April 1, 2015, shall be paid to the general fund of the city, the City of Northport, the county, the hospital authority, the county school system, and the city school system, as applicable, for payment pursuant to such pledges; however, no sums may be distributed pursuant to this subdivision in excess of the distribution that the recipient would have received under this act as in effect before the 2015 amendment to the act.

"(2) No later than November 30 of each fiscal year, twenty-five thousand dollars ($25,000) shall be disbursed to the general fund of each of the municipalities of Lakeview, Brookwood, Vance, Coaling, and Coker for general municipal purposes. This disbursement shall be made after the distribution made pursuant to subdivision (1) and before any other distribution is made pursuant to subdivisions (3) to (9), inclusive.

"(3) Nineteen percent of the net distributable amount, less and except any amounts paid to the city pursuant to subdivision (1), shall be paid to the city for general municipal purposes.

"(4) Five percent of the net distributable amount, less and except any amounts paid to the City of Northport pursuant to subdivision (1), shall be paid to the City of Northport for general municipal purposes.

"(5) Fourteen and three-tenths percent of the net distributable amount, less and except any amounts paid to the county pursuant to subdivision (1), shall be paid to the county for general county purposes.

"(6) Six and seven-tenths percent of the net distributable amount, less and except any amounts paid to the hospital authority pursuant to subdivision (1), shall be paid to the hospital authority, which shall use the proceeds solely to defray all or a part of the costs of any hospital operated by the hospital authority for hospital services furnished to charity patients who are residents of the county, including any municipality therein.

"(7) Twenty-five percent of the net distributable amount, less and except any amounts paid to the county school system pursuant to subdivision (1), shall be paid to the county school system, which shall use the proceeds solely for public school purposes in the county, including, but without limitation to, payment of any obligations of the county board of education which have heretofore or may hereafter be issued for any public school purposes, together with the interest thereon and the necessary expenses in connection with the issuance thereof, acquiring, providing, or constructing schoolhouses and related buildings necessary or convenient for public school purposes, and equipping, furnishing, maintaining, repairing, or replacing any buildings and acquiring sites therefor, or any other general public school purposes.

"(8) Twenty percent of the net distributable amount, less and except any amounts paid to the city school system pursuant to subdivision (1), shall be paid to the city school system, which shall use the proceeds solely for public school purposes in the city, including, but without limitation to, payment of any obligations of the city which have heretofore or may hereafter be issued for any public school purposes, together with the interest thereon and the necessary expenses in connection with the issuance thereof, acquiring, providing, or constructing schoolhouses and related buildings necessary or convenient for public school purposes, and equipping, furnishing, maintaining, repairing, or replacing any such building and acquiring sites therefor, or any other general public school purposes.

"(9) All proceeds remaining shall be paid to the commission.

"(b) Tax proceeds shall be paid over to the recipients thereof on or before the tenth day of the calendar month next succeeding the calendar month in which the proceeds have been received by the tax board. The tax board is hereby authorized to retain on hand at all times as a revolving or contingent fund for payment of its expenses, as provided for in subsection (c) of Section 9, such amount of tax proceeds as it deems expedient; provided, that as disbursements are made from the revolving or contingent fund, the tax board shall have the power, immediately or at such times as it deems convenient, to restore the moneys so disbursed out of the proceeds from the taxes herein levied; and provided further, that the revolving or contingent fund shall not at any time exceed 10 percent of the collections made under this act during the then preceding calendar month.

"(c) The recipient of taxes under subsection (a) and recipients of appropriations by the commission, by appropriate proceedings, may appropriate, pledge, or enter into long-term contracts encumbering or restricting the use of the tax proceeds distributable to the recipient."

Section 2. Section 11A is added to Acts 1953, No. 56, 1953 Regular Session, as amended by Act 94-535, 1994 Regular Session (Acts 1994, p. 976) and Act 94-554, 1994 Regular Session (Acts 1994, p. 1010), to read as follows:

Section 11A.

(a) The Tuscaloosa County Road Improvement Commission is created to provide oversight for the prioritization and financing of public road and bridge construction and maintenance projects that are financed by the tax proceeds allocated for use by the commission in accordance with subdivision (9) of subsection (a) of Section 11.

(b) The commission shall be composed of the following members:

(1) The Mayor of the City of Tuscaloosa, or his or her appointee, who shall be a resident of the city and serve a term of office coextensive with the term of office of the mayor of the city making the appointment. The acceptance or appointment shall be evidenced by an instrument signed by the mayor of the city and delivered to the commission.

(2) The Mayor of the City of Northport, or his or her appointee, who shall be a resident of the City of Northport and serve a term of office coextensive with the term of office of the Mayor of the City of Northport making the appointment. The acceptance or appointment shall be evidenced by an instrument signed by the Mayor of the City of Northport and delivered to the commission.

(3) The Chair of the Tuscaloosa County Commission, or his or her appointee, who shall be a resident of the county and serve a term of office coextensive with the term of office of the chair. The acceptance or appointment shall be evidenced by an instrument signed by the chair and delivered to the commission.

(4) One member appointed by the West Alabama Chamber of Commerce, who shall be a resident of the county and shall serve a term of office of four years from the date of appointment. The appointment shall be evidenced by an instrument signed by the chair of the chamber of commerce and delivered to the commission.

(5) The Executive Director of the Tuscaloosa County Industrial Development Authority, or his or her appointee, who shall serve a term of office of four years from the date of appointment. The acceptance or appointment shall be evidenced by an instrument signed by the executive director and delivered to the commission.

(6) One member of the Tuscaloosa County Legislative Delegation, selected by a majority of the members of the delegation, who shall be a minority and a resident of the county and serve a term of office coextensive with the term of office of the members of the delegation. The selection shall be evidenced by an instrument signed by a majority of the members of the delegation and delivered to the commission.

(7) One member of the Tuscaloosa County Legislative Delegation, selected by a majority of the members of the delegation, who shall be a resident of the county and serve a term of office coextensive with the term of office of the members of the delegation. The selection shall be evidenced by an instrument signed by a majority of the members of the delegation and delivered to the commission.

(8) The Director of the Alabama Department of Transportation, or his or her appointee, who shall serve in an ex officio, unofficial, advisory, and nonvoting capacity and shall serve a term of office coextensive with the term of office of the Governor. The acceptance or appointment shall be evidenced by an instrument signed by the director of the department and delivered to the commission.

(c) The commission shall apply the tax proceeds received under this act in the following priority, with the scope and the amount to be provided for each project to be determined by the commission, in its sole discretion. The commission, consistent with the following priorities, may appropriate funds to the county, the city, the City of Northport, the Alabama Highway Authority, the Alabama Department of Transportation, or other appropriate governmental bodies solely for the purpose of funding roads and highways in the county. The commission shall endeavor to fully fund each project, or the obligations issued to fund each project, in a timely manner, after taking into account other funding sources from the state or federal government. The commission is under no obligation to fully fund each project listed below before moving to the next project listed:

(1) Funds sufficient for the reimbursement of that portion of the City of Northport, Alabama General Obligation Warrants Series 2014-A, in the original amount of sixteen million five hundred twenty thousand dollars ($16,520,000), issued on July 21, 2014, that is used for improvements to Mitt Lary Road, determined as follows:

a. The amount needed to defease the debt service on that portion of the warrants; or

b. An amount needed to defease 10 percent of such amount each year for 10 years or, if sooner, until the warrants have been fully paid or defeased; or

c. The annual debt service on such portion of the warrants until the same are paid in full or defeased.

(2) Improvements to SR69 South.

(3) Improvements to SR69 North including, but not limited to, the intersection of Highway 43 and 69; however, this shall not include any part of the Mitt Lary Road warrant reimbursement identified in subdivision (1).

(4) Martin Luther King Boulevard/Jack Warner Parkway improvements.

(5) Improvements to McFarland Boulevard/U.S. 82, however, excluding any projects which have begun, for which a bid has been let, or for which funds have been encumbered for county projects on or before the effective date of the act adding this section.

(6) Improvements to McWright's Ferry Road.

(7) Improvements to the Bear Creek Cutoff Road.

(d) Any tax proceeds remaining after the construction of or the repayment of any obligations issued for the projects prescribed in subdivisions (1) to (7), inclusive, of subsection (c) shall be allocated as follows:

(1) Seventy-five percent to be administered by the commission for significant roadway infrastructure projects to be identified and prioritized by the commission.

(2) Twenty-five percent to the county and to each municipality located therein, in proportion to population, with the population of the county to be determined for this purpose net of the populations of the municipalities located therein, to be administered by the county or municipalities, respectively, for local roadway infrastructure projects to be determined by the county or municipalities in their sole discretion. For a municipality situated in both the county and another county, only the population of the municipality residing within the county shall be considered for purposes of this subdivision.

(d) The commission may bind itself by funding agreement, indenture, resolution, or other appropriate instrument to make appropriations in amounts specified by dollar amount or formula in future years, and may bind future road improvement boards by such means. However, the road improvement board is not obligated and may not obligate itself to pay more than it receives from the tax board. The recipient of any appropriations may pledge or otherwise commit or encumber such appropriations in accordance with law.

Section 3. This act shall become effective on June 1, 2016, following its passage and approval by the Governor, or its otherwise becoming law.

Tuscaloosa County

Tuscaloosa

Northport

Taxation

Sales and Use Tax

Highways, Roads, and Bridges

Tuscaloosa County Road Improvement Commission

Acts Amended