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AL HB116
Bill
Status
4/6/2023
Primary Sponsor
Danny Garrett
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AI Summary
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Eliminates the two percent tax rate on the first $500 of taxable income for single persons, heads of families, and married persons filing separate returns beginning in tax year 2024.
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Eliminates the two percent tax rate on the first $1,000 of taxable income for married persons filing joint returns beginning in tax year 2024.
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Makes the eliminated income amounts exempt from taxation rather than taxed at two percent.
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Maintains existing tax rates of four percent on income between $500-$3,000 (single filers) and $1,000-$6,000 (joint filers), and five percent on income exceeding those thresholds.
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Becomes effective on the first day of the third month following passage and approval by the Governor.
Legislative Description
Relating to individual income taxes; to amend Section 40-18-5, Code of Alabama 1975, to eliminate the two percent tax rate on the first five hundred dollars ($500) of taxable income for single persons, heads of families, and married persons filing separate returns and would also eliminate the two percent tax rate on the first one thousand dollars ($1,000) of taxable income for married persons filing a joint return.
Taxation and revenue, individual income tax lowest bracket eliminated
Last Action
Referred to Committee to Senate Finance and Taxation Education
4/6/2023