AL HB480

Requires counties and municipalities to distribute a minimum of 40% of their simplified sellers use tax (SSUT) proceeds monthly to local boards of education serving their jurisdictions

Changes state-level SSUT distribution from 50% to 37.5% for the State General Fund and from 12.5% to 12.5% for the Education Trust Fund (separating what was previously a combined 50% allocation)

Adjusts local government shares: counties decrease from 25% to 20% of total SSUT proceeds, while municipalities increase from 25% to 30%

Counties and municipalities may opt out of the 40% education distribution requirement by adopting a resolution or ordinance before October 1, 2027, to establish their own education funding arrangement

Effective date is January 1, 2028, and repeals Section 40-23-197.1 regarding existing monthly distribution procedures