LWVAL logo Tax Reform
including ending sales tax on groceries
A Tier I Legislative Priority for the League of Women Voters of Alabama in 2009
| Legislation to watch | About the legislation | LWVAL's position | Progress of the legislation | LWVAL action |

Legislation to watch in 2009

HB116  - Sponsored by Representative Knight,  Keahey, Fite, Rogers, Moore (M), Dunn, Robinson (O), Grantland, White, Millican, Page, Guin, Lindsey, Scott, England, Hilliard, Fields, Coleman and Todd

LWVAL is also monitoring HB16, HB53, SB6, and HB79. See Monitored Legislation to read about these bills that address Tax Reform.

About the Legislation

About HB116

A Constitutional Amendment to repeal Amendment 225: eliminated deduction of federal income tax on Alabama state tax returns for all tax years after December 31, 2010; the optional standard deduction allowed to individual income taxpayers shall be equal to the amount allowed for federal income tax purposes; personal exemption allowed for each individual income taxpayer shall be not less than $2,200 (for married taxpayers filing jointly not less than $4,400); exemption for each dependent of an individual income taxpayer shall be not less than $2,200.

Beginning January 1, 2011, the sale of food shall be exempt from state sales tax.  Corporations, S corporations and limited liability entities will not be exempt from state taxes. Local governments may continue their sales taxes on food.

This is the bill the League supported during the 2008 Legislative Session.

LWVAL's Position

LWVAL supported the original HB116.
Substitute 107046-1 is being considered for support.

The League’s position on Tax reform supports:  “an equitable distribution of the tax burden. . .” and the “system of taxation should be broad, equitable and efficient for the taxpayers of the state.  It should balance regressive and non- regressive taxes.”

Progress of Legislation

HB116 was prefiled 2/3/09 and assigned to the House Committee on Education Appropriations.  2/5/09 read for the second time and placed on the calendar with 1 substitute (Sub. 107046-1) and Pending third reading on day 3 Favorable from EA with 1 substitute EA first Substitute Offered. May 7 Indefinitely postponed.

LWVAL Action

LWVAL declared support for HB116. Substitute 107046-1 is being considered for support..

SUB 107046-1

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