HB165 Summary

• Amends Section 40-18-140 of the Alabama Code to add three new income tax refund check-off options beginning in the 2017 tax year: the State Parks Division of the Department of Conservation and Natural Resources, the Department of Mental Health, and the Alabama Medicaid Agency.

• Allows Alabama resident individual income taxpayers to designate any whole dollar amount of their refund to contribute to these newly authorized programs on their state income tax return form.

• Contributions are deposited with the State Treasurer and distributed to the respective agencies, with administration costs limited to five percent of contributions received.

• Check-offs that fail 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over a three-year period will be removed from tax return forms in the succeeding tax year and their authorization repealed.

• Effective date is the first day of the third month following passage and approval by the Governor.