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AL HB64

Bill

Status

Introduced

2/2/2016

Primary Sponsor

Lynn Greer

Click for details

Origin

House of Representatives

Regular Session 2016

AI Summary

HB 64 Summary

  • Creates the Alabama Fair Income Tax Act of 2016 to amend Section 40-18-19 of the Alabama Code regarding income tax exemptions.

  • Exempts income from defined contribution deferred compensation plans from state and local income taxation on a phased schedule: 20% exemption beginning January 1, 2017; 40% beginning January 1, 2018; 60% beginning January 1, 2019; 80% beginning January 1, 2020; and 90% beginning January 1, 2021 and thereafter.

  • Authorizes the Department of Revenue to promulgate rules as necessary to implement and administer the exemption provisions.

  • Specifies that the act shall not affect the defined contribution deferred compensation plans themselves or their federal tax treatment.

  • Becomes effective immediately upon passage and approval by the Governor or upon otherwise becoming law.

Legislative Description

Taxation, defined contribution deferred compensation plans, first $15,000, $30,000 of benefits exempt from state and local income taxes, Revenue Dept. authorized to adopt administrative rules, Sec. 40-18-19 am'd.

Taxation

Last Action

Read for the first time and referred to the House of Representatives committee on Ways and Means Education

2/2/2016

Committee Referrals

Ways and Means Education2/2/2016

Full Bill Text

No bill text available