HB435 Summary

• Authorizes Lee County Commission to levy a 1% sales and use tax outside the corporate limits of Auburn, Opelika, and Phenix City, subject to voter approval through referendum.

• Tax applies to gross sales, use, storage, or other consumption subject to state sales taxes under specified Alabama Code sections; items exempt from state sales tax are also exempt from this tax.

• State Department of Revenue collects the tax using the same methods as state sales and use taxes, with a collection charge not to exceed 5% deducted before funds are distributed to Lee County.

• Proceeds are allocated 50% for parks and recreation programs (including land purchase and facility construction) and 50% for funding additional deputy sheriffs with emphasis on school safety in county schools.

• Referendum must be approved by a majority of qualified electors residing outside the three designated cities; if approved, the act becomes operative immediately; if rejected, the act is repealed and has no effect.