Alabama Needs More Money
- Mar 2, 2015 | Gail Cole
Alabama has a revenue shortfall of some $700 million and its debts are mounting. To beef up the state’s general fund, Governor Robert Bentley is a proposing a Revenue Plain with eight options. Although he will not officially unveil his plan to the legislature until March 4, the governor has released a teaser.
Transaction tax changes
- Increase sales tax for automobiles to 4%
- Increase rental tax for automobiles to 4%
- Increase cigarette tax to $1.25 per pack, and the tax on other tobacco products proportionately
- Remove the credit that financial institutions receive for sales taxes paid
Other tax changes
- Eliminate income tax withholding exemption certificates
- Eliminate municipal utilities’ exemption
- Remove credits for state privilege and ad valorem taxes paid by insurance companies
- Remove credits for office facilities and real property investment made by insurance companies
- Require combined corporate income tax reporting for corporations doing business in other states
Governor Bentley knows this is a bold plan and he stands behind it, saying, “We were elected to make bold decisions that help Alabama, and I believe we will do just that.”
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