SB388 Summary

• Amends Section 40-18-140 of the Code of Alabama to add the Children First Trust Fund as an authorized income tax refund check-off option beginning in the 2015 tax year.

• Allows Alabama resident individual income taxpayers to designate a portion of their tax refund (in whole dollar amounts) to contribute to the Children First Trust Fund by checking an appropriate box on the state income tax return form.

• Directs contributions to be deposited with the State Treasurer for distribution to the trust fund, with the Department of Revenue retaining no more than 5 percent for administration costs.

• Check-off programs that fail to collect an average of $7,500 annually over a three-year period will be removed from tax return forms and repealed.

• Act becomes effective on the first day of the third month following passage and approval by the Governor.