BALDWIN COUNTY, Ala. — State Sen. Chris Elliott, R-Josephine, is making another attempt to steer a share of a long-standing Baldwin County school sales tax to the Gulf Shores and Orange Beach city school systems, and this time he plans to bundle the proposal with two other county tax issues in a single, all-or-nothing bill.
The fight centers on a 1983 local law that dedicates nearly 40% of a countywide one-cent sales tax to the Baldwin County Board of Education. Elliott wants the two coastal city school systems, which split from the county system in recent years, to receive a share of that revenue equal to what is collected within their city limits.
Elliott has pushed unsuccessfully for the change since last year. For the upcoming legislative session, he says he hopes to build support by packaging the school tax change with a proposed lodging tax in unincorporated Baldwin County and the renewal of a property tax that supports the hospital in Bay Minette.
At a glance
- Who: State Sen. Chris Elliott, R-Josephine
- What: A single bill combining three Baldwin County tax issues
- School tax: Give Gulf Shores and Orange Beach city schools a share of a 1983 one-cent sales tax equal to what is collected in those cities
- Lodging tax: Allow a countywide lodging tax in unincorporated areas
- Hospital tax: Allow a 2-mill property tax supporting the hospital in Bay Minette to go before voters for renewal before it expires next year
- Opposition: Baldwin County Public Schools has opposed reducing its share of the tax
Elliott’s all-or-nothing approach
Elliott said he wants lawmakers to take one up-or-down vote on the full package rather than considering each issue separately.
“We have a number of different funding issues in the county that need to be addressed. Whether that’s, you know, hospital funding in north Baldwin or resolving this lingering school tax issue or some lodging tax issues. And we’re gonna put all of those in one piece of legislation so that, you know, everybody may not get all that they want, but it’ll certainly be a way to get things moving in the right direction,” Elliott said.
The strategy ties the school funding dispute, which has divided the county’s legislative delegation, to issues that matter to other parts of the county, including north Baldwin, where the hospital tax is a concern.
The school tax dispute
The 1983 local law was written long before Gulf Shores and Orange Beach created their own school systems. Gulf Shores City Schools began operating in 2019, and Orange Beach followed with its own city system a short time later. Before the split, students in both cities attended Baldwin County public schools, which received the education share of the penny tax for the entire county.
The tax is not general operating money. The one-cent levy is divided among several entities, including the Baldwin County Board of Education, the county’s juvenile court and district attorney’s office, Coastal Alabama Community College and county road and traffic projects. The school system’s portion is earmarked for capital construction and building maintenance.
In 2025, the two beach cities said in a joint statement that the school share of the tax generates about $28 million a year, that Gulf Shores and Orange Beach contribute about 17% of that revenue, and that their students receive none of it. Estimates of what the cities could receive under the proposals discussed that year ranged from about $3 million to $5 million annually.
Gulf Shores Mayor Robert Craft argued at the time that the tax should follow the student. “Every citizen in Baldwin County pays this tax and every child who attends a public school in Baldwin County should benefit equitably,” Craft said. Orange Beach Mayor Tony Kennon said, “I fail to understand why anyone would not see the unfairness of the distribution.”
The county school system’s position
Baldwin County Public Schools has opposed Elliott’s efforts, arguing that the beach cities agreed to the financial terms when they left the county system. In a statement responding to Elliott’s latest push, the system’s superintendent said in part:
“These agreements were made and signed many years ago when the city school systems broke away with a good understanding of what was being agreed to.”
County school officials have previously noted that the local law governing the tax was last revised in 2017, during the period when the separation terms were being negotiated. In 2025, Superintendent Eddie Tyler said, “The beach cities chose to leave the Baldwin County Public School System of their own free will.” The system’s chief financial officer, John Wilson, said that year that the tax revenue is pledged to bond payments for the construction of the county’s newest high school.
What happened last year
The dispute spilled into the State House during the 2025 legislative session. Elliott and state Rep. Frances Holk-Jones sponsored local bills that would have redistributed the tax, either based on where the money is collected or based on student enrollment. A separate statewide bill from Sen. April Weaver, SB 270, would have required county sales taxes for schools to be shared among school systems on an enrollment basis in most counties.
Elliott said at the time that the current arrangement is “fundamentally unfair” to the coastal cities. “When these two school systems split off, they had an expectation that their legislative delegation would update the statute,” he said. “Most of what we do here in Montgomery is update statutes.”
Sen. Greg Albritton, R-Atmore, whose district includes part of north Baldwin County, opposed the effort. He called the approach “patently unfair,” argued resources should not shift from the county system to the city systems and noted that northern Baldwin County has greater needs than the coastal communities. Albritton threatened to filibuster the statewide bill if it reached the Senate floor. None of the proposals became law.
The hospital tax in north Baldwin
The second piece of Elliott’s package involves a 2-mill property tax in northern Baldwin County that supports the hospital in Bay Minette. The tax is set to expire next year unless voters approve a renewal, and it cannot go on the ballot without action by the Legislature.
Under Alabama’s constitution, many local taxes, including property taxes dedicated to specific purposes, require legislation before local voters can approve or renew them. That gives the county’s legislative delegation significant control over the timing of a renewal vote.
The Bay Minette hospital is a key health care provider for the northern part of the county, which is more rural than the fast-growing Eastern Shore and coastal areas. Rural hospitals across Alabama have faced financial pressure for years, and local tax support can be an important part of keeping them open.
A lodging tax for unincorporated areas
The third piece would allow a countywide lodging tax in unincorporated parts of Baldwin County. Elliott said that would level the playing field between cities that levy their own lodging taxes and areas just outside their limits.
Lodging taxes are charged on hotel rooms, condominiums and short-term rentals. Beach cities such as Gulf Shores and Orange Beach rely on lodging tax revenue to help pay for services tied to tourism. Rental properties just outside city limits do not collect the city taxes, which can create a price difference for visitors and a gap in revenue for services those visitors use.
Why a package deal matters
Local legislation in Alabama typically depends on support from the lawmakers who represent the affected county. If members of a county delegation disagree, a local bill can stall. By combining three issues into one bill, Elliott is betting that lawmakers who want the hospital tax renewal or the lodging tax will be willing to accept the school tax change to get them.
That approach carries risk. Opponents of the school tax change could refuse to back the entire package, which could delay the hospital tax renewal. Supporters of the hospital tax or the lodging tax could also object to having their priorities tied to the long-running school funding fight.
About Elliott
Elliott, a Republican from Josephine, represents Senate District 32, which covers much of southern Baldwin County, including Gulf Shores and Orange Beach. He has been active on several regional issues this year, including a proposal to repaint the I-10 Bayway to add lanes and a draft bill that would create a state income tax credit for tolls on the new Mobile River Bridge and Bayway.
What comes next
Elliott plans to bring the package to the Legislature’s next regular session. Any bill would need to be drafted, advertised as local legislation where required and approved by both chambers. If the package passes, the hospital tax renewal would then go before voters in the affected area.
Residents who want to weigh in can contact members of the Baldwin County legislative delegation, the Baldwin County Board of Education or their city school boards in Gulf Shores and Orange Beach.