Alabama 2023 Regular Session

Alabama Senate Bill SB48 Compare Versions

Only one version of the bill is available at this time.

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1	1	SB48INTRODUCED
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4	4	By Senators Orr, Bell, Butler, Carnley, Sessions, Waggoner,
5	5	Hovey, Weaver, Reed, Scofield, Barfoot, Price, Williams,
6	6	Roberts, Elliott, Kelley, Allen, Givhan, Chambliss, Albritton,
7	7	Stutts, Singleton, Melson, Coleman-Madison
8	8	RFD: Finance and Taxation Education
9	9	First Read: 07-Mar-23
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17	17	8 XQIJZE-1 02/28/2023 KHF (F)KHF 2023-561
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19	19	SYNOPSIS:
20	20	Under existing law, Alabama levies an individual
21	21	income tax at rates ranging from two percent on taxable
22	22	income to a top rate of five percent on taxable income.
23	23	This bill would phase in a reduction in the top
24	24	tax rate from five percent to four and ninety-five
25	25	hundredths percent.
26	26	A BILL
27	27	TO BE ENTITLED
28	28	AN ACT
29	29	Relating to individual income taxes; to amend Section
30	30	40-18-5, Code of Alabama 1975, to phase-in a reduction in the
31	31	top tax rate from five percent to four and ninety-five
32	32	hundredths percent.
33	33	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
34	34	Section 1. Section 40-18-5, Code of Alabama 1975, is
35	35	amended to read as follows:
36	36	"§40-18-5
37	37	The tax levied and imposed by Section 40-18-2 shall be
38	38	computed as follows:
39	39	(1) For a single person, head of family, or married
40	40	persons filing separate returns:
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68	68	28 SB48 INTRODUCEDSB48 INTRODUCED
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70	70	a. Two percent of taxable income not in excess of five
71	71	hundred dollars ($500).
72	72	b. Four percent of taxable income in excess of five
73	73	hundred dollars ($500) and not in excess of three thousand
74	74	dollars ($3,000).
75	75	c. Five percent of For taxable income in excess of
76	76	three thousand dollars ($3,000) :.
77	77	1. Five percent through tax year 2022.
78	78	2. Four and ninety-nine hundredths percent for tax year
79	79	2023.
80	80	3. Four and ninety-eight hundredths percent for tax
81	81	year 2024.
82	82	4. Four and ninety-seven hundredths percent for tax
83	83	year 2025.
84	84	5. Four and ninety-six hundredths percent for tax year
85	85	2026.
86	86	6. Four and ninety-five hundredths percent for tax year
87	87	2027 and each tax year thereafter.
88	88	(2) For married persons filing a joint return:
89	89	a. Two percent of taxable income not in excess of one
90	90	thousand dollars ($1,000).
91	91	b. Four percent of taxable income in excess of one
92	92	thousand dollars ($1,000) and not in excess of six thousand
93	93	dollars ($6,000).
94	94	c. Five percent of For taxable income in excess of six
95	95	thousand dollars ($6,000) :.
96	96	1. Five percent through tax year 2022.
97	97	2. Four and ninety-nine hundredths percent for tax year
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127	127	2023.
128	128	3. Four and ninety-eight hundredths percent for tax
129	129	year 2024.
130	130	4. Four and ninety-seven hundredths percent for tax
131	131	year 2025.
132	132	5. Four and ninety-six hundredths percent for tax year
133	133	2026.
134	134	6. Four and ninety-five hundredths percent for tax year
135	135	2027 and each tax year thereafter.
136	136	Section 2. This act shall become effective on the first
137	137	day of the third month following its passage and approval by
138	138	the Governor, or its otherwise becoming law.
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