Week Five Update

It was a busy week in the Alabama Legislature as they attempted to move a bunch of bills through before the first of two District Work Weeks. While we didn’t get see much movement on bills currently on our watchlist, a fresh batch of new bills dropped this week that caught our attention.

 

Prior to diving in, let’s recognize our members and friends who help shape our Government Affairs effort. ASCPA Board Members Bruce Fryer, Brian McLeod, Jamey Carroll and Matthew Hilburn are joined by fellow CPAs Jeannine Birmingham (she’s everywhere!), J. Michael Aiken and Todd Hindsman. Todd also chairs BCA’s Tax & Fiscal Policy Committee. We’re also blessed to have the incredible wisdom of Bruce Ely and Will Thistle from Bradley Arant Boult Cummings LLP. If you encounter anyone on this list, please thank them for their service and support of the Society’s efforts.

 

1. Rep. David Faulkner’s HB163 (HB163-int.pdf) – There was no movement on this bill this past week. It passed the House last week and is up for consideration in the Finance & Taxation – Education Committee. We are hopeful Chairman Arthur Orr will place it on the agenda upon their return from break.

 

The timing isn’t ideal, but we still think it is worth supporting since it would mean a tax break for entities with R&D expenses. Sen. Dan Roberts has agreed to carry the bill in the Senate.

 

2. Sen. Clyde Chambliss’s SB174 (SB174-int.pdf) - There was no movement on this bill this past week.

We need to clarify our commentary from last week on this bill. Last week we reported that the bill would expand the Alabama Tax Tribunal’s jurisdiction to hear appeals of unfair business license taxes assessed by third-party tax collection companies on behalf of counties and municipalities. The bill also allows taxpayers to appeal unfair business license taxes assessed by counties and municipalities that self-administer their business licenses.

 

Currently, unfair business license taxes require taxpayers to appeal to the circuit court in the jurisdiction of the taxing agency. The ability to file these appeals with the Alabama Tax Tribunal saves taxpayers time and money. We are advocating for the passage of this bill.

 

3. Rep. Danny Garrett’s HB379 (HB379-int.pdf) – Creates conditions under which an Alabama non-resident employee can be exempt from withholding and paying state income tax. We’ve included details of this bill in the Watchlist.

 

4. Chairman Garrett’s HB386-389 (HB386-int.pdf, HB387-int.pdf, HB388-int.pdf, HB389-int.pdf) – This series of bills would make permanent tax-reductions to grocery sales taxes, increases the optional standard deduction for income taxes, and increases the tax exemption for taxable retirement income. We believe these bills set the stage for the overtime income tax exemption to expire on June 30th. These bills have cleared Chairman Garrett’s Ways and Means – Education committee and will likely be considered on the House floor next week.

 

5. Rep. Bill Lamb’s HB414 (HB414-int.pdf) – Changes the annual expenditure thresholds used to determine whether a small municipality requires an annual audit, biennial audit or file a report to the Examiners of Public Accounts.

 

6. The Legislature will be taking its first of two “spring break” weeks next week. They’ll reconvene the following week, then take their second week-long break. To recap, they’re in session the 1st and 3rd weeks of March, off the 2nd and 4th weeks.

CLICK HERE FOR THE WATCHLIST

There have been 652 bills filed as of this weekend. The bills in their entirety can be found at https://alison.legislature.state.al.us and, if you have any additional questions or comments, please reach out to me at rpearson@alabama.cpa.