AL HB5

Amends Section 40-18-140 of the Code of Alabama 1975 to add three new income tax refund check-off options beginning in the 2018 tax year: State Parks Division of the Department of Conservation and Natural Resources, Department of Mental Health, and Alabama Medicaid Agency.

Allows Alabama resident individual income taxpayers to designate any whole dollar amount of their state income tax refund to contribute to any authorized check-off program listed on their tax return.

Contributions to the new check-off recipients are deposited with the State Treasurer and distributed to the respective agencies, with up to 5 percent of contributions retained for Department of Revenue administrative costs.

Any check-off program that fails to achieve average annual gross contributions of $7,500 over a three-year period will be dropped from state income tax return forms and repealed.

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