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SB 145ALABAMASession 2026rsState BillBecame law

Enacted

Alabama makes hospital provider privilege tax permanent and removes 2028 sunset clause

Original title: Hospitals, private hospital assessment and Medicaid funding program sunset clause removed.

Last action · April 9, 2026: EnactedSponsor: Greg Albritton

Companion · HB 232same policy, House version

Bill progressHistory & official text ↓

Introduced

Committee

Floor Vote

Passed

Law

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What This Bill Does

Alabama enacts Senate Bill 145 to remove all statutorily provided sunset dates, making the permanent starting October 1, 2026. The legislation eliminates Section 40-26B-88, which previously established a termination date of September 30, 2028, for the tax and associated Medicaid funding mechanism.

Why it matters

The measure permanently maintains a 6.00 percent assessment on privately operated hospitals' net patient revenue to secure federal matching funds for inpatient and outpatient hospital Medicaid services.

Background

The hospital provider privilege tax is a state-level assessment levied on private hospitals to generate revenue used as the state match for federal Medicaid funds. context
Previous iterations of the statute included sunset clauses that required periodic legislative renewal of the assessment program. context

Who It Affects

Groups the bill's text affects, as described in the record. Being affected is not a position for or against it.

Directly affected

privately operated hospital

Privately operated hospitals are subject to a 6.00 percent assessment on net patient revenue and are eligible for inpatient and outpatient hospital access payments.

Directly affected

publicly owned and state-owned hospitals

Publicly owned and state-owned hospitals make intergovernmental transfers to the Alabama Medicaid Agency and are eligible for hospital access payments.

Directly affected

Alabama Medicaid Agency

The Alabama Medicaid Agency administers assessments, evaluates adverse impacts on hospital reimbursement, and manages the Hospital Assessment Account.

Key Facts

You don't have to trust us. Each fact below is taken straight from the official document - click any one to see the exact passage, highlighted in the original.

Frequently Asked Questions

What does SB 145 change about the hospital provider privilege tax?

SB 145 removes all statutorily provided sunset dates, making the permanent and repealing the September 30, 2028 termination date.

What is the tax rate applied to privately operated hospitals?

An assessment of 6.00 percent of net patient revenue is imposed on each privately operated hospital.

When does this act become effective?

The act becomes effective on October 1, 2026.

What else do you want to know?

News Coverage

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Votes, people, money & the original source

Where This Stands

Current status: Became law.

Procedural history

21 actions

Apr 9, 2026SenateEnrolled
Enacted
Apr 2, 2026SenateEnrolled
Delivered to Governor
Apr 2, 2026House
Signature Requested
Apr 2, 2026Senate
Enrolled
Apr 2, 2026Senate
Ready to Enroll
Apr 1, 2026HouseFloor
Motion to Read a Third Time and Pass - Adopted Roll Call 1135

Show 15 earlier actions

Apr 1, 2026House
Third Reading in Second House
Mar 31, 2026House
Read for the Second Time and placed on the Calendar
Mar 31, 2026HouseCommittee
Reported Out of Committee Second House
Mar 12, 2026HouseCommittee
Pending Committee Action in Second House
Mar 12, 2026HouseIntroduced
Read for the first time and referred to the House Committee on Ways and Means General Fund
Mar 11, 2026Senate
Engrossed
Mar 11, 2026SenateFloor
Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 824
Mar 11, 2026Senate
Albritton motion to Adopt - Adopted Roll Call 823
Mar 11, 2026Senate
Finance and Taxation General Fund 1st Substitute Offered
Mar 11, 2026Senate
Third Reading in House of Origin
Mar 10, 2026Senate
Read for the Second Time and placed on the Calendar
Mar 10, 2026SenateCommittee
Reported Out of Committee House of Origin
Mar 10, 2026Senate
Finance and Taxation General Fund 1st Substitute
Jan 14, 2026SenateCommittee
Pending Committee Action in House of Origin
Jan 14, 2026SenateIntroduced
Read for the first time and referred to the Senate Committee on Finance and Taxation General Fund

Version history

Only one version on file - nothing to compare yet. As later stages (committee substitute, engrossed, enrolled) are captured, the redline appears here.

What This Bill Does

Who It Affects

Key Facts

Frequently Asked Questions

News Coverage

Where This Stands

Procedural history

Version history

Voting Record

Lobbying Activity

Full breakdown

Sponsors

Discoveries

Permanent Elimination of Tax Sunset

Connected Entities

Sources

Analysis Score

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