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AL SB48

Bill

Status

Introduced

3/7/2023

Primary Sponsor

Arthur Orr

Click for details

Origin

Senate

Regular Session 2023

AI Summary

  • Amends Section 40-18-5 of the Alabama Code to phase in a reduction of the top individual income tax rate from 5% to 4.95% over five years
  • Top rate reduction schedule: 4.99% for tax year 2023, 4.98% for 2024, 4.97% for 2025, 4.96% for 2026, and 4.95% for 2027 and thereafter
  • Applies the phased reduction to both single filers (income over $3,000) and married joint filers (income over $6,000) in the highest tax bracket
  • Lower tax brackets remain unchanged at 2% and 4% rates
  • Becomes effective on the first day of the third month following passage and gubernatorial approval

Legislative Description

Relating to individual income taxes; to amend Section 40-18-5, Code of Alabama 1975, to phase-in a reduction in the top tax rate from five percent to four and ninety-five hundredths percent.

Taxation and revenue, individual income tax rate reduced

Last Action

Indefinitely Postpone

5/31/2023

Committee Referrals

Finance and Taxation Education3/7/2023

Full Bill Text

No bill text available