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AL HB64
Bill
Status
2/2/2016
Primary Sponsor
Lynn Greer
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AI Summary
HB 64 Summary
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Creates the Alabama Fair Income Tax Act of 2016 to amend Section 40-18-19 of the Alabama Code regarding income tax exemptions.
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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.
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Authorizes the Department of Revenue to promulgate rules as necessary to implement and administer the exemption provisions.
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Specifies that the act shall not affect the defined contribution deferred compensation plans themselves or their federal tax treatment.
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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