Alabama Senate Committee advances phone tax increase

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…