Tax Reform
SB144 - Income tax deduction, deduction based on federal income tax paid, limit established. Constitutional Amendment
Sponsor(s): Senator Andrew Jones
Synopsis and Analysis: This bill would exempt sales of food from state sales and use taxes beginning October 1, 2020. It would replace the lost funding (which is earmarked for the Special Education Trust Fund) by removing a portion of the Federal Income Tax deduction that is granted for Alabama income taxpayers. This FIT deduction would be capped at $6,000 for individuals and $12,000 for those filing jointly.
This legislation requires a Constitutional Amendment.
Passage of this bill would give Alabamians some extra immediate income (because it lowers their grocery bills) while preserving much needed funding for the education budget.
League Action and Justification: Support. The LWVAL has long supported tax reform that is not regressive and takes into account the ability to pay tax without undue hardship. The burden of a grocery tax falls more heavily on low-income Alabamians especially since purchasing food is a necessity.
This bill is roughly revenue neutral: it replaces most of the education funding that would be lost without the grocery tax. Also, because this bill requires a Constitutional amendment, it would allow the people of Alabama to decide whether or not to remove this regressive tax.
Bill Progress in Legislature
Go here to get more information about the bill and changes in the bill as it progresses through the legislature.
SB144 - Income tax deduction, deduction based on federal income tax paid, limit established. Constitutional AmendmentSponsor(s): Senator Andrew Jones
Synopsis and Analysis: This bill would exempt sales of food from state sales and use taxes beginning October 1, 2020. It would replace the lost funding (which is earmarked for the Special Education Trust Fund) by removing a portion of the Federal Income Tax deduction that is granted for Alabama income taxpayers. This FIT deduction would be capped at $6,000 for individuals and $12,000 for those filing jointly.
This legislation requires a Constitutional Amendment.
Passage of this bill would give Alabamians some extra immediate income (because it lowers their grocery bills) while preserving much needed funding for the education budget.
League Action and Justification: Support. The LWVAL has long supported tax reform that is not regressive and takes into account the ability to pay tax without undue hardship. The burden of a grocery tax falls more heavily on low-income Alabamians especially since purchasing food is a necessity.
This bill is roughly revenue neutral: it replaces most of the education funding that would be lost without the grocery tax. Also, because this bill requires a Constitutional amendment, it would allow the people of Alabama to decide whether or not to remove this regressive tax.
Bill Progress in Legislature
Go here to get more information about the bill and changes in the bill as it progresses through the legislature.
| Calendar Date | Body | Amd/Sub | Matter | Committee | Nay | Yea | Abstain | Vote |
| 02/06/2020 | S | Read for the first time and referred to the Senate committee on Finance and Taxation Education | F&TE | |
Fiscal Note for SB144
Contact information for legislators and committees that might be referenced in this bill:
Representatives Representatives Phone Directory Standing House Committees
Senators Senators Phone Directory Standing Senate Committees
Find my legislators