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Tax rebate bill filed in Senate

State Sen. Arthur Orr (R-Decatur) filed SB86 to serve as the legislative vehicle for Gov. Kay Ivey’s proposed tax rebate.

It offers one of the first official, on-paper looks at the logistics of her proposal – which will ultimately be decided by the Legislature.

Here are the details:

  • A one-time rebate not subject to Alabama income tax
  • Must have filed a 2021 tax return to qualify 
  • Does not include those who were claimed as a dependent in 2021
  • $400 rebate for single or those filing separately
  • $800 rebate for married filing jointly
  • State will issue rebates no later than 90 days after enacted 

Ivey said a rebate is in order due to a surplus in the Education Trust Fund “far exceeding normal and sustainable levels.” She wants to “give a fair share of this money directly back to the people of Alabama.”

It’s currently unclear if the proposal will be at odds with other ideas on spending the surplus. Orr has also drafted legislation to gradually eliminate the grocery tax while Lt. Gov. Will Ainsworth said the state can go all the way by repealing the grocery tax entirely.

Grayson Everett is a staff writer for Yellowhammer News. Follow him on Twitter @Grayson270 for coverage of the 2023 Legislative Session.

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