Latest news with #HB386
Yahoo
09-05-2025
- Business
- Yahoo
Gov. Kay Ivey signs grocery tax cut into law
Alabama Gov. Kay Ivey delivers the State of the State address in the Old House Chamber at the Alabama State Capitol on Feb. 4, 2025 in Montgomery, Alabama. (Will McClelland for Alabama Reflector) Gov. Kay Ivey Friday signed a bill reducing the state sales tax on groceries. HB 386, sponsored by Rep. Danny Garrett, R-Trussville, will cut the state share of the tax from 3% to 2% effective Sept. 1. 'When we can reduce taxes in Alabama and provide some relief to the hardworking people of this state, I am all for it. I was pleased to sign House Bill 386 to take another notch off our state grocery tax,' Ivey said in a statement. Alabama is one of just a few states that still taxes groceries. Until September 2023, the state taxed groceries at the full 4% state sales tax that's been around since 1939. Combined with local taxes, the total tax on food in Alabama ran as high as 10% in some places. In Montgomery, a family spending $600 a month on groceries could pay up to $60 in taxes. The Legislature in 2023 reduced the state sales tax on groceries from 4% to 3%. But it also required growth of at least 3.5% in the Education Trust Fund (ETF), which gets most of the grocery tax. Compared to the previous fiscal year, the current 2025 ETF has grown 3.28% this year, compared to the 2024 ETF at the same point, but budget chairs indicated they were comfortable with moving forward. Under the new legislation, the tax bill on $600 worth of groceries in Montgomery will go from $54 to $48. Lawmakers also changed the bill to allow local governments to reduce their sales and use tax on groceries, effectively combining HB 387 with the legislation — which the House passed in March and a Senate committee in late April. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
07-05-2025
- Business
- Yahoo
Alabama Senate passes bill to reduce sales tax on groceries
General Manager Brian Horak walks down an aisle at Post 60 Market in Emerson, Nebraska. The Alabama Senate Thursday approved a bill to cut the state grocery tax from 3% to 2%. (Kevin Hardy/Stateline) The Alabama Senate Tuesday passed a bill to cut the state sales tax on groceries from 3% to 2%. HB 386, sponsored by Rep. Danny Garrett, R-Trussville, will fast-track a tax reduction on groceries by taking the next cent off the state sales tax on groceries. Lawmakers passed similar legislation in 2023 that would have made the cut if the Education Trust Fund (ETF), which pays for public education in the state and gets most of the grocery tax revenue, grew 3.5%. 'We took off the first cent. The second cent was going to come off when we hit a growth metric of 3.5%. We have not met that, but our budget chairman feels comfortable in going ahead and moving forward,' said Sen. Andrew Jones, R-Centre, who presented the bill to the Senate. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX Alabama is one of only 13 states that taxes groceries, and until September 2023, it had taxed groceries at the full state sales tax rate of 4% since the sales tax was implemented in 1939. With the addition of local taxes, the total tax on groceries in the state could reach as high as 10%. In Montgomery, a family would pay up to $60 in taxes if they spent $600 on groceries monthly. Under the bill passed Tuesday, the bill would reduce the levies on $600 of groceries from $54 to $48. The bill passed 34-0 with little discussion and went to the House for concurrence on the Senate amendment. Finance and Taxation Education Trust Fund Budget Chair Sen. Arthur Orr, R-Decatur, said it was a clarifying amendment from the Department of Revenue to ensure sales and use taxes are equal. The Senate also changed the bill to allow local governments to reduce their sales and use tax on groceries, effectively combining HB 387 with the legislation. The House passed HB 387 in March, and a Senate committee approved the bill in late April. 'This bill just basically takes [HB] 387, puts it into [HB] 386. So, in this one grocery tax bill, we're cutting the tax 1%, and also allowing locals to reduce their taxes when they want to,' Garrett said to the House during concurrence. The House concurred 102-0 with Senate changes, and the bill went to Gov. Kay Ivey. The bill carries a fiscal note of $121.9 million. State budget officials said last September that growth in the ETF was expected to be below the 3.5% required under the 2023 law to cut the state share of the grocery tax. Garrett was previously reluctant to support additional reductions to the grocery tax because of the potential impact on the ETF. Efforts to eliminate the grocery tax traditionally came from Democrats but had typically been unsuccessful due to concerns about the effect on the state's education budget. Alabama Arise, a left-leaning organization working on poverty issues, celebrated the bill's passage, saying that the first reduction was an 'essential first step toward tax justice' and said this legislation 'continues that momentum.' 'The grocery tax drives many families deeper into poverty, and Arise remains committed to the goal of eliminating it entirely,' said Robyn Hyden, executive director of Arise, though she added that it's important to ensure the grocery tax reduction is sustainable in the future, suggesting that the state cap or end the state income tax deduction for federal income tax payments. 'Alabama is the only state to allow this full deduction, which overwhelmingly benefits the wealthiest households. Closing this skewed loophole would protect funding for public schools and ensure Alabama can afford to end the state sales tax on groceries forever,' Hyden said. SUPPORT: YOU MAKE OUR WORK POSSIBLE
USA Today
03-05-2025
- Business
- USA Today
Louisiana may soon recognize silver, gold as currency, according to proposed legislation
Louisiana may soon recognize silver, gold as currency, according to proposed legislation Show Caption Hide Caption What's really going on with gold prices? Gold recently reached a record high as geopolitical tensions pushed investors towards the traditional safe play. Merryn Somerset Webb explains what's going on - and where things could go from here. Bloomberg - Politics Louisiana House Bill 386 proposes making gold and silver official currency in the state. The bill defines key terms related to precious metals and currency and outlines the Louisiana State Treasurer's role in implementing the law. The bill stipulates that gold and silver currency cannot be used for loans or investments and remain the depositor's property. The bill aims to be cost-neutral to the state's general fund. A proposed bill before the Louisiana Legislature aims to establish gold and silver as currency in the state. Bossier City Republican Representative Raymond Crews' House Bill 386 designates gold and silver as official currency. Here's what you should know. Proposed bill establishes gold, silver as currency HB 386 defines "bullion," "bullion depository," "currency," "deposit," "depositor," "depository account," "depository account holder," "pooled depository account," "precious metal," "specie" and "treasurer." In case you missed it: Gold breaks $3,500 as investors continue to seek safe haven amid economic uncertainty According to the proposed law, the Louisiana State Treasurer is authorized to adopt rules in accordance with the Administrative Procedure Act as necessary or convenient to implement the use of gold and silver as currency. It also specified that the treasurer will not authorize or implement any rules or assume any duties beyond those roles and duties necessary to make gold and silver a means of currency in the state. The treasurer may issue and establish gold and silver specie as currency and choose to contract with a bullion depository of another state or a private vendor with the state. The proposed law stipulates that currency, bullion or specie cannot be used for loan or investment funding, and all currency established under the proposed law remains the depositor's property. The depository is also barred from withholding a depositor's currency or enforcing a waiting period for currency withdrawal. Money received pursuant to the proposed law, specie or bullion purchased and deposited in the pooled depository account, and money received from the sale of specie or bullion are not subject to legislative appropriation under certain circumstances. It also permits the treasurer to establish a fee for the issuance or redemption of the currency to cover the costs of administering the proposed law. HB 386 also stipulates that the state cannot incur additional costs to the state general fund to administer the provisions of the proposed law. Follow Ian Robinson on Twitter @_irobinson and on Facebook at
Yahoo
21-03-2025
- Politics
- Yahoo
What passed in the Alabama Legislature: March 18-20, 2025
U.S. Rep. Shomari Figures, D-Mobile (center) embraces his mother, Sen. Vivian Davis Figures, D-Mobile, on the floor of the Alabama Senate on March 19, 2025 at the Alabama Statehouse in Montgomery, Alabama. The first-term congressman spoke briefly to the chamber during a recess on Wednesday. To the Figures' left is Sen. Robert Stewart, D-Selma; to the right is Sen. Merika Coleman, D-Pleasant Grove. (Brian Lyman/Alabama Reflector) Here is a list of bills that passed the Alabama Legislature this week. House HB 299, sponsored by Rep. Brett Easterbrook, R-Fruitdale, adds a $50 court fee for civil and criminal cases in Choctaw County circuit or district courts and a $25 fee for civil cases in small courts. The bill passed 10-0. It goes to the Senate. HB 300, sponsored by Rep. Brett Easterbrook, R-Fruitdale, allows the Choctaw County probate judge to collect a $10 fee for each document subject to deed and mortgage taxes. The bill passed 9-0. It goes to the Senate. HB 325, sponsored by Rep. Ernie Yarbrough, R-Trinity, allows the Lawrence County commission to form and fund fire districts. The bill passed 28-0. It goes to the Senate. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX HB 343, sponsored by Rep. Jim Carns, R-Birmingham, makes membership of the General Retirement System for Employees of Jefferson County mandatory for eligible full-time employees effective Oct. 1. The bill passed 20-0. It goes to the Senate. HB 345, sponsored by Rep. Allen Treadaway, R-Birmingham, allows the Jefferson County sheriff to appoint special reserve deputies when the county has fewer than 250 deputies. The bill passed 24-0. It goes to the Senate. HB 351, sponsored by Rep. Brett Easterbrook, R-Fruitdale, allows the Choctaw County Commission to increase property taxes by 5 mills to fund county road and bridge projects. The bill passed 8-0. It goes to the Senate. HB 369, sponsored by Rep. Troy Stubbs, R-Wetumpka, allows the revenue commissioner of Elmore County to levy a sales and use tax, to fund local infrastructure projects and economic development. The bill passed 10-0. It goes to the Senate. HB 371, sponsored by Rep. Reed Ingram, R-Matthews, levies a $25 annual motor vehicle registration fee in Elmore County to be allocated to infrastructure and economic development. The bill passed 11-0. It goes to the Senate. HB 378, sponsored by Rep. Ron Bolton, R-Northport, allows the Pickens County Commission to levy a $10 vehicle registration fee to fund ambulance services. The bill passed 7-0. It goes to the Senate SB 162, sponsored by Sen. Wes Kitchens, R-Arab, revises the distribution of Tennessee Valley Authority in-lieu-of-taxes payments in Marshall County, allocating funds to education, economic development, emergency services, mental health programs and local organizations. The bill passed 12-0. It goes to Gov. Kay Ivey. HB 386, sponsored by Rep. Danny Garrett, R-Trussville, reduces the state's sales tax on groceries from 3% to 2%. The bill passed 103-0. It goes to the Senate. HB 387, sponsored by Rep. Danny Garrett, R-Trussville, allows local governments to reduce their local sales taxes on groceries. The bill passed 102-0. It goes to the Senate. HB 388, sponsored by Rep. Danny Garrett, R-Trussville, increases the amount of untaxable retirement income for Alabamians older than 65 from $12,000 to $24,000 for couples and from $6,000 to $12,000 for individuals. The bill passed 103-0. It goes to the Senate. HB 389, sponsored by Rep. Danny Garrett, R-Trussville, increases the threshold for optional income tax deductions. The bill passed 102-0. It goes to the Senate. HB 30, sponsored by Rep. Debbie Wood, R-Valley, requires county probate offices to conduct election audits for every county and state election in randomly selected precincts. The bill passed 63-30. It goes to the Senate. HB 320, sponsored by Rep. Chris Pringle, R-Mobile, allows public notice requirements for public works contracts to be advertised on a centralized Department of Finance website or direct mailing to interested parties if a print newspaper publication is insufficient. The bill passed 100-0. It goes to the Senate. HB 319, sponsored by Rep. Terri Collins, R-Decatur, establishes the Imagination Library of Alabama Program to provide free monthly age-appropriate books to children under five. The bill passed 103-0. It goes to the Senate. HB 281, sponsored by Rep. Cynthia Almond, R-Tuscaloosa, revises the appeals process for municipal zoning board decisions by setting deadlines for filing appeals, requiring boards to submit records to the court and establishing criteria for staying decisions during appeals. The bill passed 102-0. It goes to the Senate. HB 253, sponsored by Rep. Brock Colvin, R-Albertville, provides a state sales tax exemption for aircraft parts and maintenance services used by certified air carriers. The bill passed 101-0. It goes to the Senate. HB 322, sponsored by Rep. Frances Holk-Jones, R-Foley, requires education and screening for postpartum depression for mothers with Medicaid coverage. The bill passed 102-0. It goes to the Senate. HB 307, sponsored by Rep. Jim Hill, R-Odenville, authorizes the chief justice of the Alabama Supreme Court to appoint visiting judges for specific violent criminal cases. The bill passed 102-0. It goes to the Senate. HB 264, sponsored by Rep. Danny Crawford, R-Athens, adjusts the registration of boats to include a staggered renewal process and directs a portion of proceeds to the State Reservoir Management Grant Fund. The bill passed 101-1. It goes to the Senate. HB 232, sponsored by Rep. Alan Baker, R-Brewton, requires written notification to a school's superintendent or principal if a student is charged with or adjudicated delinquent for certain serious crimes, including capital offenses. The bill passed 79-8. It goes to the Senate. HB 356, sponsored by Rep. Matt Woods, R-Anniston, increases punishments for making terrorist threats, like school shooting threats, and requires students charged with such crimes to be suspended for a year. The bill passed 101-0. It goes to the Senate. HB 333, sponsored by Rep. David Faulkner, R-Rainbow City, allows law enforcement to build indoor firing ranges for training. The bill passed 102-0. It goes to the Senate. HB 207, sponsored by Rep. Mike Shaw, R-Hoover, expands the role of the Office of Information Technology in Alabama by adding cybersecurity and other tasks related to data management and telecommunications. The bill passed 103-0. It goes to the Senate. HB 338, sponsored by Rep. Parker Moore, R-Hartselle, expands the exceptions for key duplication services that do not fall under the definition of a locksmith. The bill passed 102-0. It goes to the Senate. Senate SB 116, sponsored by Sen. Will Barfoot, R-Pike Road, would make it a state crime to possess or distribute firearm conversion devices, commonly referred to as 'Glock switches,' which enable semi-automatic pistols to fire as fully automatic weapons. The Senate concurred 24-2 with House changes. Gov. Kay Ivey signed the legislation into law Wednesday. HB 243, sponsored by Rep. Andy Whitt, R-Harvest, removes part of the property and construction taxes from private use industrial property, tangible property and taxable services after June 1, 2026, and requires the local tax collecting official and Department of Revenue to collect the money and deposit it into the Alabama Development Fund. The bill passed 27-0. It goes to Gov. Kay Ivey. HB 93, sponsored by Rep. Chip Brown, R-Hollingers Island, would exempt the personal property of members of the Alabama State Port Authority from being audited. The bill passed 28-0 and goes to the House. SB 156, sponsored by Sen. Will Barfoot, R-Pike Road, would give some people sentenced to life in prison under the state's Habitual Offender Law before May 26, 2000 to have their sentences reviewed. The bill passed 17-8 and goes to the House. SB 177, sponsored by Sen. Lance Bell, R-Pell City, would rename the Alabama Film Office the Alabama Entertainment Office and allow up to $3 million in unspent incentives to be carried forward each year. The bill passed 30-0. It goes to the House. SB 200, sponsored by Sen. Andrew Jones, R-Centre, would change the name of 'drug courts' to 'accountability courts' and to include offenders with mental illness and offenders who are veterans. The bill passed 29-0. It goes to the House. HB 159, sponsored by Rep. Joe Lovvorn, R-Auburn, renames the Alabama Space Science Exhibit Commission the U.S. Space and Rocket Center Commission. The bill passed 30-0. It goes to Gov. Kay Ivey. SB 106, sponsored by Sen. Rodger Smitherman, D-Birmingham, would raise the Small Estates Act distribution threshold to the combined maximum amount allowed for homestead allowance, exempt property, and family allowance. It passed 33-0. It goes to the House. SB 133, sponsored by Sen. David Sessions, R-Grand Bay, would require juvenile courts to notify the local school superintendent or private school principal in writing when a student is charged with or found guilty of a serious crime that would be a Class A or B felony if committed by an adult. It passed 29-0. It goes to the House. House HB 347, sponsored by Rep. Chris Blackshear, R-Smiths Station, would abolish the office of constable in Russell County on June 1. The bill passed 18-0. It goes to the Senate. HB 348, sponsored by Rep. Chris Blackshear, R-Smiths Station, allows the Russell County Commission to increase the probate recording fee from $5 to $10. The bill passed 14-0. It goes to the Senate. HB 349, sponsored by Rep. Chris Blackshear, R-Smiths Station, increases the annual salary of the sheriff of Russell County from $120,000 to $135,000, effective June 1. The bill passed 15-0. It goes to the Senate. HB 413, sponsored by Rep. Chad Robertson, R-Heflin, sets the salary for the sheriff and revenue commissioner of Cleburne County at $72,000, effective January 2027, and enrolls them in cost-of-living increases effective October 2028. The bill passed 16-0. It goes to the Senate. HB 417, sponsored by Rep. Troy Stubbs, R-Wetumpka, alters the boundaries and corporate limits of the city of Eclectic in Elmore County. The bill passed 17-1. It goes to the Senate. SB 127, sponsored by Rep. Keith Kelley, R-Anniston, allows the Calhoun County Commission to increase daily compensation for members of the Calhoun County Board of Registrars on days the board meets and conducts business. The bill passed 18-0. It goes to Gov. Kay Ivey. HB 352, sponsored by Rep. Danny Crawford, R-Athens, increases the assessment levy on the sale of cotton bales from $1 to $1.30 per bale. The bill passed 102-0. It goes to the Senate. HB 346, sponsored by Rep. Paul Lee, R-Dothan, removes 100-hour practice requirement for certification of retired physicians who volunteer in hospitals. The bill passed 103-0. It goes to the Senate. SB 47, sponsored by Sen. Bobby Singleton, D-Greensboro, provides civil liability protections for members of community emergency response teams who have completed FEMA-recognized training. The bill passed 102-0. It goes to Gov. Kay Ivey. SB 54, sponsored by Sen. Dan Roberts, R-Mountain Brook, criminalizes unauthorized interference with critical infrastructure facilities, including damage or use of drones, and increases penalties for tampering with sectors like energy and transportation. The bill passed 101-0. It goes to Gov. Ivey. SB 78, sponsored by Sen. April Weaver, R-Alabaster, criminalizes the possession, use or sale of inhalants such as butyl nitrite, nitrous oxide and amyl nitrite for people under 21 years old. The bill passed 102-0. The Senate concurred in House changes and sent the bill to Gov. Kay Ivey. HB 336, sponsored by Rep. Kenyatté Hassell, D-Montgomery, allows Alabama to join the Respiratory Care Interstate Compact, enabling licensed respiratory therapists to practice in multiple states. The bill passed 103-0. It goes to the Senate. HB 360, sponsored by Rep. Chad Robertson, R-Heflin, changes 'drug courts' to 'accountability courts' and expands their scope to include offenders with mental illnesses or those who are veterans. The bill passed 102-0. It goes to the Senate. HB 359, sponsored by Rep. Allen Treadaway, R-Birmingham, adds Parkinson's disease to the list of occupational diseases for firefighters. The bill passed 103-0. It goes to the Senate. HB 141, sponsored by Rep. Kenyatté Hassell, D-Montgomery, allows state employees to use pre-tax salary deductions to purchase household items like washing machines. The House voted 103-0 to concur with a Senate amendment that said deductions could not be used for political donations. The bill goes to Gov. Kay Ivey. Senate SB 65, sponsored by Sen. Steve Livingston, R-Scottsboro, would change the boundary lines and corporate limits of the Town of Paint Rock in Jackson County. The bill passed 29-0. It goes to the House. SB 44, sponsored by Sen. Gerald Allen, R-Cottondale, would propose a local constitutional amendment to prohibit any additional sales and use tax in the county except when approved by a majority vote of the qualified electors of the area where the proposed tax will be paid. The bill passed 29-0. It goes to the House. HB 193, sponsored by Rep. Ben Robbins, R- Sylacauga, removes certain property from the corporate limits of the town of Bon Air and adds it to the city of Childersburg. The bill passed 30-0. It goes to Gov. Kay Ivey. HB 87, sponsored by Rep. A.J. McCampbell, D-Linden, increases the expense allowance of the Marengo County coroner from $400 to $1,000 a month; authorizes the Marengo County Commission to approve future increases and authorizes the commission to hire a deputy coroner. The bill passed 30-0. It goes to Gov. Kay Ivey. HB 211, sponsored by Rep. Randy Wood, R-Anniston, would allow the Calhoun County Commission to regulate halfway houses and similar facilities. The bill passed 30-0. It goes to Gov. Kay Ivey. HB 210, sponsored by Rep. Randy Wood, R-Anniston, would increase Calhoun County's coroner's base salary to $54,570 starting in 2027 and raise the salaries of assistant coroners from $4,800 to $6,100. The bill passed 30-0. It goes to Gov. Kay Ivey. HB 104, sponsored by Rep. Barbara Drummond, D-Mobile, allows the governing body of a Class 2 municipality to determine whether debris is a public nuisance and remove it. The bill passed 30-0. It goes to Gov. Kay Ivey. HB 101, sponsored by Rep. Mark Shirey, R-Mobile, allows the Mobile County sheriff to create guidelines for using the Sheriff's Office credit or debit card. The bill passed 30-0. It goes to Gov. Kay Ivey. SB 221, sponsored by Sen. Jack Williams, R-Wilmer, would create a $49,000 expense allowance for the Mobile County Probate Judge beginning June 1, then increase the judge's base salary by $49,000 in 2031, at which point the allowance will be ended. The bill passed 30-0. It goes to the House. SB 224, sponsored by Sen. David Sessions, R-Grand Bay, would direct the Mobile County sheriff to administer and supervise all electronic monitoring of pretrial defendants in the Thirteenth Judicial Circuit of Alabama. The bill passed 30-0. It goes the House. SB 219, sponsored by Sen. Randy Price, R-Opelika, would authorize the Clay County sheriff to sell certain abandoned, stolen, and unclaimed property at public auction. The bill passed 30-0. It goes to the House. SB 220, sponsored by Sen. Randy Price, R-Opelika, would authorize the Clay County sheriff to conduct fundraising events. The bill passed 30-0. It goes to the House. HB 110, sponsored by Rep. Chris Pringle, R-Mobile, continues the State Board of Medical Examiners and the Medical Licensure Commission through October 1, 2027, and makes employees and board members subject to the state ethics laws. The bill passed 31-0. It goes to the governor. HB 111, sponsored by Rep. Randall Shedd, R-Fairview, continues the Home Builders Licensure Board through Oct. 1, 2029. The bill passed 31-0. It goes to the governor. HB 118, sponsored by Rep. Matt Simpson, R-Daphne, continues the State Board of Chiropractic Examiners through Oct. 1, 2029. The bill passed 31-0. It goes to the governor. HB 122, sponsored by Rep. Kerry Underwood, R-Tuscumbia, continues the Board of Physical Therapy through Oct. 1, 2029. The bill passed 31-0. It goes to the governor. House HB 422, sponsored by Rep. Chris Blackshear, R-Smiths Station, repeals a 1969 law on the distribution of state gas excise tax revenues to incorporated municipalities in Russell County. The bill passed 15-0. It goes to the Senate. SB 41, sponsored by Sen. Keith Kelley, R-Anniston, allows the Calhoun County Commission to regulate halfway houses and similar facilities, including setting permit, size, location and occupancy requirements. The bill passed with a House committee substitute that removed the bill's expiration date 13-0. It goes back to the Senate for concurrence or a conference committee. HB 258, sponsored by Rep. Jim Carns, R-Birmingham, changes the primary election date in off-presidential years from the fourth Tuesday in May to the second Tuesday in May. The bill passed 98-1. It goes to the Senate. HB 363, sponsored by Rep. James Lomax, R-Huntsville, prohibits people without legal status from contributing to campaigns, political parties or political action committees. The bill passed 100-0. It goes to the Senate. HB 95, sponsored by Rep. Chris Sells, R-Greenville, requires that when a residential property with an HVAC system is sold, the manufacturer's warranty on the system automatically transfers to the new owner, without any transfer fee, as long as the warranty is still valid. The bill passed 103-0. It goes to the Senate. SB 198, sponsored by Sen. Sam Givhan, R-Huntsville, establishes the Alabama National Guard Legal Services Office and Legal Assistance Program, defining positions and duties for judge advocates and paralegals, and allowing them to perform notary acts. The bill was substituted for HB 328, sponsored by Rep. Cynthia Almond, R-Tuscaloosa, and passed 103-0. It goes to Gov. Kay Ivey. HB 361, sponsored by Rep. Matthew Hammett, R-Dozier, grants the Ma-Chis Lower Creek Indian Tribe the authority to hire certified police officers to maintain security on tribal property. The bill passed 103-0. It goes to the Senate. HB 152, sponsored by Rep. Neil Rafferty, D-Birmingham, exempts baby formula, maternity clothing and menstrual hygiene products from the state sales tax. The bill passed 102-0. It goes to the Senate. HB 234, sponsored by Rep. Alan Baker, R-Brewton, requires schools by 2030 to have designated employees carrying emergency response system to be used for medical emergencies and security. The bill passed 58-30. It goes to the Senate. HB 148, sponsored by Rep. Phillip Pettus, R-Greenhill, ensures that vehicles registered in other states comply with the insurance requirements of their home state. The bill passed 103-0. It goes to the Senate. SB 222, sponsored by Rep. Kirk Hatcher, D-Montgomery, authorizes medical clinic boards leasing property to health care providers in bankruptcy to adjust their debts under federal law. The bill passed 102-0. It goes back to the Senate for concurrence or a conference committee. SB 199, sponsored by Sen. Vivian Figures, D-Mobile gives paid parental leave to all state employees and educators. It was substituted for HB 327, sponsored by Rep. Ginny Shaver, R-Leesburg. The bill passed 94-2. It goes to Gov. Kay Ivey. HB 285, sponsored by Rep. Jamie Kiel, R-Russellville, requires law enforcement to notify the emergency contact of a minor for traffic infractions. The bill passed 99-1. It goes to the Senate. HB 384, sponsored by Rep. Danny Crawford, R-Athens, defines corn masa and requires corn masa products sold in Alabama to be enriched with folic acid. The bill passed 91-7. It goes to the Senate. SB 25, sponsored by Senate President Pro Tem Garland Gudger, R-Cullman, directs proceeds from alcoholic beverage sales tax in community development districts to a special fund for grants supporting local education, community and tourism activities. The House concurred with an executive amendment from Gov. Kay Ivey that only applies the legislation to Cullman County. Senate SB 252, sponsored by Sen. Billy Beasley, D-Clayton, would create new regulations and restrictions on reimbursements and fees pharmacy benefit managers (PBMs) charge to pharmacies. The bill passed 33-0. It goes to the House. SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
19-03-2025
- Business
- Yahoo
Alabama House approves grocery tax cut, income tax adjustments
Rep. Danny Garrett, R-Trussville, looks up to the gallery of the Alabama House of Representatives on March 18, 2025, at the Alabama State House in Montgomery, Alabama. The chamber unanimously passed a $192 million tax cut package of bills sponsored by Garrett. (Anna Barrett/Alabama Reflector) The Alabama House of Representatives unanimously passed $192 million in tax cuts in a four-bill package on Tuesday. HB 386, 387, 388 and 389, all sponsored by Rep. Danny Garrett, R-Trussville, will reduce the state grocery tax by 1%; allow local governments to cut their grocery taxes; increase the amount of retirement income exempt from taxes and increase income tax thresholds, deductions and child credits for those making less than $120,000 a year. The money comes out of the $9.2 billion Education Trust Fund (ETF), which pays for most public education funding in the state. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX Garrett said in an interview that the overtime tax exemption served as an obstacle in reducing taxes on groceries. The exemption cost the ETF $234 million, well above earlier projections, and Republican legislative leaders had signaled they would not renew the deduction when it expires in June. 'And so what we've done is basically pass taxes that are broader,' Garrett said. 'If it's sunsets, then we'll have a chance to evaluate it and sort out some things.' HB 386 would reduce the state's tax on groceries from 3% to 2%. Alabama is one of 13 states that taxes groceries, according to the AARP. Alabama Republicans have been working on reducing the grocery tax from its original 4% since 2023. The reduction to 2% was only supposed to happen if the ETF's revenue grew by 3.5%, but that target has not been met. Garrett said the legislation will accelerate the grocery tax reduction, and it will go into effect on Sept. 1 if it passes. 'The next 25% reduction was going to take place when revenue grew 3.5%,' he said. 'That has not happened this year, it probably will not next year.' The grocery tax reduction takes $121 million from the ETF's revenue. HB 387 is similar. It allows but does not require local governments to reduce local grocery taxes. House Speaker Nathaniel Ledbetter, R-Rainsville, said after the House adjourned that local governments are already allowed to increase grocery taxes, but not decrease. 'They've always had the opportunity to raise it, but they didn't have the opportunity to decrease it,' he said. 'Hoover wanted to decrease one and because of the state law, it couldn't. So this gives them the opportunity to do that.' HB 388 increases the amount of untaxable retirement income for Alabamians older than 65 from $12,000 to $24,000 for couples and from $6,000 to $12,000 for individuals. Ledbetter said it is good for senior citizens of the state. 'You know, they're on fixed income, and helping them with the ability to do better as far as finances go is important,' Ledbetter said in an interview. HB 389 increases the threshold for optional income tax deductions. Under current law, married taxpayers filing jointly can deduct $8,500 if their income is less than $25,000. The proposed legislation increases the optional deduction to $9,500 if the couple's income is less than $28,000. Dependents of a married couple filing jointly whose gross income is less than $60,000 can deduct up to $1,000, which is up from the household income of $50,000. For families making less than $120,000, their dependents can claim deductions of up to $500, which is up from a household income of $100,000. The cuts will mostly impact the Education Trust Fund budget. Rep. Thomas Jackson, D-Thomasville, said he worried about the effect, saying that the body should focus on improving education rather than diminishing its budget. 'How are we going to regroup and replenish the Education Trust Fund budget when we're taking so much from it?' Jackson asked Garrett on the House floor. But Garrett said the ETF would not feel the impact. 'We feel through the growth of the budget and through continued good, fiscally responsible budgeting practices, we can sustain these cuts,' Garrett said on the House floor. 'But the answer to your question is: if we can improve the education outcomes, if we can improve labor participation, those are the types of things that are going to help us grow our revenue stream.' Ledbetter said he is supportive of the package because it will impact most Alabamians. 'The tax breaks we did today affects everybody in this state, and that was a priority to make sure it was widespread and affected everybody, especially the senior citizens,' Ledbetter said. Ledbetter said although he is supportive of an overtime tax exemption, it is more important to be fiscally responsible and fund education. 'I get it and I certainly support that,' Ledbetter said. 'But I also think there is a balance, as far as being able to afford it.' Garrett said he would rather have a tax reduction that impacts all Alabamians than one that costs $300 million and affects a smaller group of Alabamians. 'I think what we're doing is broad-based that's going to affect a lot of Alabama,' he said. The package now goes to the Senate. SUPPORT: YOU MAKE OUR WORK POSSIBLE
