HB364 Summary

• Amends Alabama severance tax law (Code §40-13-51 through §40-13-58) governing taxation of natural minerals including sand, gravel, granite, limestone, and dolomite at $0.10 per ton.

• Requires the Department of Revenue to provide county commissions with severance tax records, returns, and information about collections and payments from operators in their counties upon request.

• Establishes that tax becomes due at time of sale or delivery and mandates producers identify the tax separately on sales documents; grants producers credits for taxes paid to other counties when materials are transported for further processing.

• Allocates collected revenues quarterly to counties where materials were severed, with at least 75% directed to road construction and maintenance, local economic development, public transit, or land reclamation; designates all Franklin County revenues exclusively for economic development.

• Mandates the Department of Revenue shall impose interest and penalties on delinquent taxes, with one-half retained by the department for administration expenses (capped at 1.5% of quarterly collections) and one-half distributed to the relevant county.