Some Alabamians could be facing an additional tax burden if the legislature does not act soon, according to State Sen. Dan Roberts (R-Mountain Brook).

During an appearance on Mobile radio FM Talk 106.5’s “The Jeff Poor Show,” Roberts warned that under current Alabama statute, there was no exclusion from the calculation of Alabama taxable income for one-time America Rescue Plan Act (ARPA) pandemic-related benefits passed by Congress last year.

Roberts referred to a pledge from Gov. Kay Ivey that the state government had no intention of taxing the pandemic relief benefits received from the federal government in 2020. However, inaction could create issues for tax filers and the Alabama Department of Revenue with tax season looming.

“[A]RPA passed in March,” he explained. “ARPA provided one critical thing for Alabama families. There were three different types of credits geared toward families. It was the increased child tax credit that most of your listeners started getting the credit around July 15, 2021, and that continued through December — and then, increased dependent care credit and increased and modified earned income credit.”

“The point about these dollars: the person who received the check had to be working to get two of the three of those — the dependent care and earned income credit,” Roberts continued. “And if the taxpayer does not have earned income, the tax credits are not available as earned income. And that’s a key component because if you remember, there were the additional stimulus dollars, $300 a week, that were coming in federally. In many cases, some were not returning to work. But this has nothing to do with that. This is about getting roughly $2 billion that came to Alabama families between July and December into a position that we do not tax it as a state.”

The Jefferson County Republican lawmaker said if the legislature does not take quick action, which he suggests should be in the widely anticipated special session within the ongoing regular session intended to deal with ARPA funding allocations, Alabama families will be on the hook for $87.7 million in additional state income tax on those benefits.

@Jeff_Poor is a graduate of Auburn University and the University of South Alabama, the editor of Breitbart TV, a columnist for Mobile’s Lagniappe Weekly, and host of Mobile’s “The Jeff Poor Show” from 9 a.m.-12 p.m. on FM Talk 106.5.