AL HB353

Reduces the additional state sales tax on alcoholic beverages from 2% to 0.5% in counties without a local sales tax or with rates below 0.5%, and to 1.5% in municipalities without a local sales tax or with rates below 1.5%.

Requires the Alcoholic Beverage Control Board to collect applicable local sales taxes in jurisdictions where they exceed these thresholds, preventing double taxation on the same sale.

Allows the Department of Revenue to withhold up to 5% of collected taxes for administrative costs, with remaining proceeds distributed to the local governing bodies where retail stores are located.

Requires tax proceeds distributed to counties to be used exclusively for law enforcement purposes unless otherwise provided by local act.

Becomes effective January 1, 2011, and repeals Section 28-3-286 of the Alabama Code.