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AL HB23
Bill
Status
2/7/2017
Primary Sponsor
Lynn Greer
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AI Summary
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Amends Alabama Code Section 40-18-19 to exempt annual income from defined contribution deferred compensation plans from state and local income taxation, phased in over five years beginning January 1, 2018.
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Exemption percentages increase gradually: 20% for 2018, 40% for 2019, 60% for 2020, 80% for 2021, and 90% for 2022 and thereafter.
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Authorizes the Department of Revenue to promulgate rules necessary to implement and administer the exemption.
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Applies to all individuals receiving benefits from defined contribution deferred compensation plans, with exemptions available to both resident and nonresident taxpayers.
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Becomes effective immediately upon passage and approval by the Governor.
Legislative Description
Taxation, defined contribution deferred compensation plans, certain percentage 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
2/7/2017