SB136 By Senators Figures, Dunn, Ross, Beasley, Singleton, Coleman-Madison and Sanders RFD Finance and Taxation General Fund Rd 1 03-FEB-16

SYNOPSIS: Currently, the state levies a 6.5 mill annual ad valorem tax on the assessed value of taxable property in the state.

This bill would propose a constitutional amendment to levy an additional five (5) mill annual state ad valorem tax. The net proceeds of the additional levy would be distributed to the State General Fund for Medicaid purposes.

A BILL TO BE ENTITLED AN ACT

To propose an amendment to the Constitution of Alabama of 1901, as amended, to levy an additional five (5) mill of state ad valorem tax; and to provide that the net proceeds shall be distributed to the State General Fund.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:Section 1. The following amendment to the Constitution of Alabama of 1901, as amended, is proposed and shall become valid as a part thereof when approved by a majority of the qualified electors voting thereon and in accordance with Sections 284, 285, and 287 of the Constitution of Alabama of 1901, as amended:

PROPOSED AMENDMENT

(a) After December 31, 2016, an additional state ad valorem tax shall be levied at the rate of five (5) mill per annum on the assessed value of the taxable property within the state subject to exemptions, valuations, and limitations provided for by general law.

(b) The net proceeds of the tax levied by subsection (a) shall be distributed to the State General Fund for Medicaid purposes.

Section 2. An election upon the proposed amendment shall be held in accordance with Sections 284 and 285 of the Constitution of Alabama of 1901, now appearing as Sections 284 and 285 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, and the election laws of this state at the next statewide primary, general or special election held for that purpose.

Section 3. The appropriate election official shall assign a ballot number for the proposed constitutional amendment on the election ballot and shall set forth the following description of the substance or subject matter of the proposed constitutional amendment:

"Proposing an amendment to the Constitution of Alabama of 1901, to provide an additional five (5) mill of ad valorem tax to take effect after December 31, 2016, for years on taxable property in the state and distributing the net proceeds to the State General Fund for Medicaid purposes.

"Proposed by Act ________."

This description shall be followed by the following language:

"Yes ( ) No ( )."

Constitutional Amendments

Ad Valorem Tax

General Fund