Every Alabamian can expect a tax increase of 98 cents per phone line if the Alabama Legislature and the governor signs legislation to raise a new tax to fund the Alabama Department of Mental Health (ADMH).
Senate Bill 328 (SB328) is sponsored by State Senator Garlan Gudger.
The controversial phone tax legislation was given a favorable report by the Senate Fiscal Responsibility and Economic Development Committee on Wednesday.
The new tax would generate $69 million yearly in new revenues for the state.
The money raised by the bill would go to the Alabama Department of Mental Health. Alabama started a 988 crisis phone line last year. The funding from the new phone tax would be used for call centers and an expansion in mental health services, including 988 call centers, mobile crisis services, and crisis centers.
The funds would go directly into the non-reverting Alabama 988 Crisis Care Fund in the State Treasury to be managed by ADMH. This bill would also create the 19-member 988 Commission to study the impact of the crisis.
Companion legislation in the House is sponsored by State Representative Rex Reynolds. House Bill 389 (HB389) was carried over by the House Ways and Means General Fund Committee on Wednesday. Since this is a tax increase, by rule, it should originate in the House rather than the Senate.
An opponent of the legislation told Alabama Today that if you try to oppose this, they accuse you of being anti-mental health, which he is not, but feels that any additional funding for mental health comes from the state general fund (SGF) rather than by creating a new tax.
The 98 cent per phone line tax is similar to the $1.88 tax that funds the 9-11 system. That tax originally was just 44 cents per line. Tax opponents oppose growing government by increasing the tax burdens imposed on the people of Alabama.
Supporters argue that the high rates of suicide and mental health issues in the state justify the tax increase.
SB328 could be considered by the Senate as early as Tuesday.
Tuesday will be the 24th day of the 2023 Alabama Regular Legislative Session.
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