AL SB409

Proposes the "Simplified Flat Tax Act of 2015" constitutional amendment, effective January 1, 2017, which repeals three existing constitutional amendments (Amendments 25, 212, and 225) related to income tax.

Imposes a flat tax rate of 2.75 percent on individual residents' adjusted gross income and on nonresidents' Alabama-source income, plus an additional 2.75 percent tax on residents' interest from out-of-state obligations.

Imposes a flat corporate income tax rate of 4.59 percent on taxable income of corporations incorporated in, doing business in, or deriving income from Alabama.

Allows individuals to exclude income derived from and taxed by other jurisdictions; restricts deductions, credits, and exemptions to charitable contributions, federally-required items, or those adopted by the Legislature by 80 percent vote in each house.

Requires the amendment to be submitted to voters at the next statewide election and authorizes the Legislature to enact implementing legislation.