Alabama Senate Bill SB85

Alabama 2022 Regular Session

• Introduced: 1/13/22
• Refer: 1/13/22

Caption

Toll road and bridge fees, income tax credit for state taxpayers for payments to Ala. Toll Road, Bridge, and Tunnel Authority, Revenue Dept. authorized to adopt rules, funds transferred from sales tax revenue to cover

Impact

The implementation of SB85 is expected to influence state laws by formally recognizing and incentivizing the payment of toll fees through an income tax credit mechanism. This shift not only aids in mitigating the financial burden on users but also aligns with broader objectives of state revenue management by redirecting certain sales tax revenues to support this initiative. Furthermore, a separate account within the Education Trust Fund, designated as the Toll Authority Income Tax Credit Account, will facilitate the processing of these credits, ensuring that the funds are managed appropriately.

Summary

SB85 proposes to establish an income tax credit for eligible Alabama taxpayers who pay toll fees associated with toll roads, bridges, or tunnels constructed with public funds. The bill aims to provide a financial incentive for taxpayers who regularly utilize these infrastructure projects, encouraging usage of newly constructed transportation routes that may enhance statewide mobility and reduce congestion on older roadways. This approach signifies the state’s commitment to enhancing its infrastructure while simultaneously providing relief to taxpayers who shoulder the costs of utilizing these facilities.

Contention

Notable points of contention surrounding SB85 include discussions on the impacts of toll fees on low-income individuals and the potential revenue loss from the income tax credit. Critics may argue that while the intent is to promote infrastructure use, the reliance on tolls can disproportionately affect lower-income residents who may struggle to afford added fees for travel. Furthermore, the bill would require careful analysis and monitoring to ensure the tax credits do not result in significant fiscal burdens on the state while attempting to balance the promotion of public infrastructure improvements.