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AL SB47
Bill
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, effective for tax year 2023 and beyond.
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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.
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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.
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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
Indefinitely Postpone
5/31/2023