HB198 Summary

• Amends Section 40-18-140 of the Alabama Code to add three new income tax refund check-off options beginning in the 2023 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 an amount of their refund in whole dollars to contribute to these three new programs through boxes on state income tax return forms.

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

• Establishes a minimum funding threshold requiring check-offs to achieve average annual gross contributions of $7,500 over a three-year period; check-offs failing to meet this threshold are removed from future tax return forms after three years.

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