SB209INTRODUCED
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SB209
NPKXTJ8-1
By Senators Jones, Butler, Smitherman, Hatcher, Allen, Givhan,
Weaver, Livingston, Melson, Sessions, Carnley, Bell, Kelley,
Shelnutt, Kitchens, Stutts, Elliott, Roberts, Barfoot,
Waggoner, Gudger, Williams, Price, Chesteen, Orr, Stewart,
Coleman, Coleman-Madison, Beasley
RFD: Veterans and Military Affairs
First Read: 06-Mar-24
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9 NPKXTJ8-1 02/16/2024 JRF (F)JRF 2024-751
Page 1
First Read: 06-Mar-24
SYNOPSIS:
Under current law, compensation for active
service members of the armed forces of the United
States in a combat zone is not subject to state income
tax.
This bill would expand this exemption to include
certain compensation of members of the National Guard
and Reserve and those members who are deployed to
locations outside the United States or activated to
support state or federal response to emergencies within
or outside of the United States.
A BILL
TO BE ENTITLED
AN ACT
Relating to income tax; to amend Section 40-18-3, Code
of Alabama 1975, to expand the current state income tax
exemption for military pay to include certain compensation of
members of the National Guard and Reserve and those members
who are deployed to locations outside the United States or
activated to support certain emergencies.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 40-18-3, Code of Alabama 1975, is
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Section 1. Section 40-18-3, Code of Alabama 1975, is
amended to read as follows:
"ยง40-18-3
The salaries, fees, commissions or other income of
officers or agents of the United States or its agencies and
instrumentalities or its contractees, received from the United
States or from its agencies and instrumentalities, shall be
subject to income taxes levied by the State of Alabama as
other income is taxed, but without discrimination, and only to
the same extent and in the same manner as other income is
taxed, insofar as the State of Alabama may be constitutionally
or legally authorized to tax such income; provided, that money
paid by the United States to a person as compensation for
active service as a member of the armed forces of the United
States,including members of the National Guard and Reserve
components, in a combat zone designated by executive order of
the President of the United States , deployed to locations
outside the United States, or activated by the Governor of the
State of Alabama or the President of the United States to
support state or federal response to emergencies within or
outside of the United States shall not be subject to income
taxes levied by the State of Alabama for the calendar year
1965 or any subsequent year ."
Section 2. This act shall become effective on January
1, 2025.
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