HB7 Summary

• Amends Section 40-18-140, Code of Alabama 1975, to add three new income tax refund check-off options beginning in the 2017 tax year.

• Allows Alabama resident individual income taxpayers to designate a portion of their refund to contribute to the State Parks Division of the Department of Conservation and Natural Resources, the Department of Mental Health, or the Alabama Medicaid Agency.

• Contributions are deposited with the State Treasurer, with up to 5 percent deducted for Department of Revenue administrative costs.

• Any check-off that fails to achieve average annual gross contributions of $7,500 over a three-year period will be removed from tax return forms in the succeeding tax year.

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