State Budget Includes $166 Million in New Taxes, Fees

Date: September 17, 2015

The Alabama Legislature adjourned the second special session on Wednesday, Sept. 16, after passing a $1.7 billion General Fund budget.  

The Budget was cobbled together with new taxes, and transferring the use tax receipts from the Education Trust Fund Budget to the General Fund.  

The General Fund Budget level funded Medicaid, Corrections, Mental Health, Human Resources and the court system.  

Some other agencies’ budgets were cut by 5.5 percent or more. The budget passed the House 71-21 and the Senate 23-9. Gov. Robert Bentley signed it into law on Thursday, Sept. 17.

The spending plan includes $166 million in new taxes, including: 

  • $80 million transfer of use tax money
  • $70 million state cigarette tax
  • $16 million in health care provider taxes. These include a 15-cent tax on prescription drugs and a nursing home tax of about $400 per bed.

Related Content: Small Business News | Alabama

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