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Code of Alabama — Title 40 (Revenue and Taxation)

Ala. Code § 40-13-58

Disposition of Funds

Official textalison.legislature.state.al.us

# (a)

All revenues collected from the tax levied pursuant to this article, less an amount to cover the expenses of administration and collection and one-half of all interest and penalties collected, as provided in subsection (b) of Section 40-13-57, shall be remitted quarterly to the governing body of the county from which the severed material was severed within 60 days following the end of a calendar quarter along with a report prepared by the department detailing how the amount remitted was determined. Notwithstanding the above, the aggregate amount retained by the department to defray the expenses described herein shall not exceed 1.5 percent of the total revenues collected during such calendar quarter and shall be credited to its current service revenue.

# (b)

The revenues remitted to a county as provided in subsection (a) shall be deposited into a fund held and dispensed by the county commission and designated as the severed material severance tax fund. At least 75 percent of such funds shall be allocated and utilized by the county for the construction, maintenance, and repair of the county’s road system or, if provided by local legislation, for a local economic development authority, public transit, construction and maintenance of county roads and bridges, or the reclamation of lands where natural materials have been severed. Notwithstanding the foregoing, revenues distributed to Franklin County as provided in subsection (a) shall be allocated and utilized exclusively for economic development. Twenty-five percent of the funds distributed to a county as a result of the severance of materials from within the corporate limits of a municipality in the county shall be expended by the county on county roads or other projects authorized by this article within the corporate limits of that municipality.

# (c)

Revenues collected by the tax imposed by this article shall be remitted back to the county from which the severed material was originally produced based on total tons severed in such county subject to the severance tax multiplied by the rate of tax, less sums due the department, as provided in subsection (a), based on forms submitted to the department from the operator or producer.

# (d)

Any adjustment of taxes, interest, or penalties which is necessary to adjust any error in the calculation, collection, or disbursement may be made at a subsequent collection or disbursement.

Last amended: Act 2004-629, p. 1433, §9; Act 2012-318, p. 717, §1.

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In this chapter (32 sections)
  1. 40-13-1 · Definitions
  2. 40-13-2 · Excise and Privilege Tax Levied; Rate of Tax
  3. 40-13-3 · Monthly Report of Producer
  4. 40-13-4 · Monthly Report of Purchasers and Transporters
  5. 40-13-5 · Deposit of Proceeds; Disbursement and Appropriation of Funds
  6. 40-13-6 · Distribution of Tax Proceeds
  7. 40-13-8 · Termination of Tax; Application
  8. 40-13-9 · Political Subdivisions of State Prohibited from Levying Tax…
  9. 40-13-10 · Criminal Penalties
  10. 40-13-30 · Definitions
  11. 40-13-31 · Levy and Collection of Excise and Privilege Tax; Amount of…
  12. 40-13-32 · Deposit and Distribution of Proceeds of Taxes Collected…
  13. 40-13-33 · Computation of Tonnage Severed and Distribution of Taxes…
  14. 40-13-34 · Inspection of Books of Persons Engaged in Severing of Coal…
  15. 40-13-35 · Penalty for Violation of Provisions of Article
  16. 40-13-36 · Construction of Article
  17. 40-13-50 · Short Title
  18. 40-13-51 · Definitions
  19. 40-13-52 · Severance Tax Levied
  20. 40-13-53 · Applicability
  21. 40-13-54 · Rate and Collection of Tax; Credit; Liability for Tax
  22. 40-13-55 · Rules and Regulations; Accounting
  23. 40-13-56 · Tax Return
  24. 40-13-57 · Time for Making Return; Delinquent Taxes; Penalties
  25. 40-13-58 · Disposition of Funds
  26. 40-13-59 · Repeal of Conflicting Laws; Construction with Other Laws
  27. 40-13-60 · Election to Exempt County from This Chapter
  28. 40-13-61 · Violations; Penalties
  29. 40-13-80 · (Repealed Effective August 1, 2019) Legislative Findings
  30. 40-13-81 · (Repealed Effective August 1, 2019) Definitions
  31. 40-13-82 · (Repealed Effective August 1, 2019) Levy and Collection of…
  32. 40-13-83 · (Repealed Effective August 1, 2019) Repeal of Article
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