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AL SB47

Bill

Status

Introduced

3/7/2023

Primary Sponsor

Arthur Orr

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Origin

Senate

Regular Session 2023

AI Summary

  • 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, effective for tax year 2023 and beyond.

  • Eliminates the two percent tax rate on the first $1,000 of taxable income for married persons filing a joint returns, effective for tax year 2023 and beyond.

  • Maintains four percent tax rate on taxable income between $500-$3,000 (or $1,000-$6,000 for joint filers) and five percent rate on income exceeding those thresholds.

  • 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

Indefinitely Postpone

5/31/2023

Committee Referrals

Finance and Taxation Education3/7/2023

Full Bill Text

No bill text available