HB351 Summary

• Amends Section 40-28-2 of the Alabama Code to revise the distribution of Tennessee Valley Authority (T.V.A.) in-lieu-of-taxes payments to T.V.A.-served counties, increasing the percentage transferred from 75% to 78% beginning in fiscal year 2005-2006 and continuing thereafter.

• Allocates 5% of in-lieu-of-taxes payments to dry counties and municipalities not served by T.V.A., distributed on a proportionate basis according to fiscal year 1978-79 A.B.C. payments.

• Establishes that the State General Fund receives 17% of total in-lieu-of-taxes payments, with a floor of $17,840,233 beginning July 1, 2006.

• Provides special allocation procedures for Limestone, Madison, Marshall, and Morgan Counties to be determined by local law, and directs proceeds to agriculture authorities in counties that have established them.

• Repeals Section 40-28-5 of the Alabama Code and makes nonsubstantive technical revisions to update existing Code language, effective the first day of the third month following passage and approval by the Governor.