SB405 Summary

• Proposes a constitutional amendment requiring all new tax credits, exemptions, deductions, and preferential tax rates enacted beginning in the 2019 Regular Session to automatically expire within five years from their effective date.

• Tax expenditures may be extended beyond the five-year period only through a subsequent act of the Legislature.

• Defines "tax expenditure" as any law provision allowing special exclusions, exemptions, deductions, special credits, or preferential tax rates that result in a loss of state revenue.

• Amendment becomes effective upon approval by a majority of qualified voters voting in accordance with Sections 284, 285, and 287 of the Alabama Constitution.

• Election officials shall place the amendment on the ballot with the specified description and Yes/No voting options.