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Bentley Calls for Tax Increases
Gov. Robert Bentley last week proposed tax increases totaling $541 million as part
of a $700 million revenue plan. The proposal addressed eight points:
- Corporate Income Tax: Require combined income reporting for corporations that do business in other states. Estimated revenue increase: $20 million.
- Financial Institution Excise Tax: Remove the credit that financial institutions receive for sales taxes paid. Estimated revenue increase: $1 million.
- Public Utilities License Tax: Remove the exemption that applies to municipal utilities. Estimated revenue increase: $47 million.
- Individual Income Tax: Eliminate income tax withholding exemption certificates. Estimated revenue increase: $12 million.
- Automobile Rental Tax: Increase the rate from 1.5 percent to 4 percent. Estimated revenue increase: $31 million.
- Sales Tax for Automobiles: Increase the rate to 4 percent. Estimated revenue increase: $200 million.
- Cigarette and Tobacco Tax: Increase tax 82 cents per pack of cigarettes. Increase tax on other tobacco products proportionately. Keep wholesalers' discount the same as current. Estimated revenue increase: $205 million.
- Insurance Premium Tax Credits: Remove credits for inurance companies that invest in real estate and hire employees in Alabama. Estimated revenue increase: $25 million.
Bentley also proposed unearmarking $187 million to use as the state sees fit.
With a deficit of about $290 million, Bentley's proposed increases total more than needed to fill the general fund. The Federation will continue to monitor all proposals that could affect members.
In his State of the State address, Gov. Bentley praised the work ethic of Alabama citizens
and encouraged lawmakers to pass legislation aimed at recruiting new industry and helping existing businesses.
"This session we will introduce the Made in Alabama Accelerate Alabama Job Incentive," Bentley said. "Our current incentives are 15 years old, out of date and 100 percent dependent on borrowing money."
The jobs incentive will reward companies for operating in rural areas, investing in starts-ups and small businesses, hiring veterans and developing Alabama-based research centers.
Bentley proposed increased spending for:
- Pre-K education programs,
- Healthcare,
- Prisons,
- And scholarships for foster children in Alabama's two-year college system.
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Numerous Senators Co-Sponsor F4 Farm Tag Bill
A bill that would lift F4 farm tag purchase limits is a major priority
for the Alabama Farmers Federation during the 2015 Legislative session. Sen. Clay Scofield, R-Arab, introduced SB103, which would remove the limit on the number of F4 farm tags farmers can purchase. The bill has received bipartisan support with 23 senator co-sponsors.
F4 farm tags for trucks over 42,001 pounds cost $250 each, while X9 truck tags for rucks over 80,000 pounds cost as much as $890.
Federation State Senate Legislative Programs Director Matthew Durdin said F4 farm tags are the only tag limited for purchase in the state of Alabama. "A farmer may use a tractor trailer four months out of the year, but they're paying the same price as a commercial operator that may be on the road all year," Durdin said. "Our goal is to allow farmers to purchase the amount of tags their operations need."
The Senate Agriculture, Conservation and Forestry Committee could take action on SB103 at its March 11 meeting at 2:30 p.m. in room 316 of the State House. Federation members are encouraged to contact Committee members.
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Taste of Alabama Legislative Reception
More than 100 elected officials stopped by the Federation home office in Montgomery March 4 to sample Alabama-grown products and visit with Federation members at the Taste of Alabama Legislative Reception.
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Bills in Brief
Sales Tax Exemptions on Agricultural Equipment, SB127, sponsored by Sen. Tom Whatley, R-Auburn, calls for removal of the 1.5 percent sales tax on agricultural machinery and equipment. The bill is co-sponsored by Sens. Gerald Dial, R-Lineville; Shay Shelnutt, R-Trussville; Tim Melson, R-Florence; Cam Ward, R-Alabaster; and Slade Blackwell, R-Mountain Brook and has been referred to the Senate Agriculture, Conservation and Forestry Committee. The House companion, HB188, sponsored by Rep. Paul Lee, R-Dothan, was introduced March 5 and is assigned to the House Ways and Means Education Committee. AFF supports.
Country of Origin Labeling, HB 186, sponsored by Rep. A.J. McCampbell, D-Demopolis, will require restaurants to list the country of origin on food containing catfish products. The bill has been referred to the House Agriculture and Forestry Committee. AFF supports.
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The House will reconvene at 1 p.m. Tuesday, March 10. The Senate will meet at 2 p.m. the same day.
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For questions or comments on newsletter content, email:
Matthew Durdin - State Legislative Programs Director for the Senate
or
David Cole - State Legislative Programs Director for the House
For distribution questions or media inquiries, email:
A.J. Watson - Ag Communications Specialist
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