HB 116 — Relating to individual income taxes; to amend Section 40-18-5, Code of Alabama 1975, to eliminate the two percent tax rate on the first five hundred dollars ($500) of taxable income for single persons, heads of families, and married persons filing separate returns and would also eliminate the two percent tax rate on the first one thousand dollars ($1,000) of taxable income for married persons filing a joint return.
Last action — On Third Reading in House of Origin
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✓Introduced
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2In Committee
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3Passed House
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4Passed Senate
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5To Executive
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6Enacted
This bill died with 2023 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
This bill is no longer active — its legislative session has ended, so there are no live odds of enactment. It would have to be reintroduced in the current session to move again.
In plain language
The bill eliminates the lowest income tax rate for individuals and married couples in Alabama.
This legislation proposes to remove the two percent tax rate on the first $500 of taxable income for individuals and the first $1,000 for married couples filing jointly. It aims to change how individual income tax is structured in Alabama.
What this means for you
- Workers: Workers may experience a slight increase in take-home pay by not having to pay taxes on the lowest income earned.
- Families: This bill means families could see a reduction in income tax owed at lower income levels.
- Consumers: Consumers could have more disposable income if less is paid in taxes, affecting their spending choices.
Summary
Taxation and revenue, individual income tax lowest bracket eliminated
Bill Text
What changed in the latest version
72 added · 60 removedPlain-language change summary
The latest version of Bill HB 116 removes the two percent income tax on the first $500 of taxable income for single filers and certain families, as well as on the first $1,000 for married couples filing jointly. This change aims to reduce the tax burden on these groups, making it more financially manageable for lower-income individuals and families. By eliminating this tax rate, the bill seeks to increase disposable income, which can help stimulate spending and support local economies.
HB116 INTRODUCEDENGROSSED OZZTWW-1OZZTWW-2 By Representative Garrett RFD:
21-Mar-23 Page 0 OZZTWW-1HB116 02/27/2023Engrossed KHF2 (F)SBS4 2023-8686 2A 4BILL SYNOPSIS:TO BE ENTITLED AN ACT Relating to individual income taxes;
Under existing law, Alabama levies an individual income tax at rates ranging from two percent on taxable income to a top rate of five percent on taxable income.
This bill would eliminate the two percent tax rate on the first five hundred dollars ($500) of taxable income for single persons, heads of families, and married persons filing separate returns and would also eliminate the two percent tax rate on the first one thousand dollars ($1,000) of taxable income for married persons filing a joint return.
A BILL TO BE ENTITLED AN ACT Relating to individual income taxes;
Page 1 HB116 INTRODUCED BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Two percent of taxable income not in excess of five hundred dollars ($500) through tax year 2022.2022 2023.
Beginning with tax year 2023,2023 2024, taxable income not in excess of five Page 1 HB116 Engrossed hundred dollars ($500) shall be exempt.
Two percent of taxable income not in excess of one thousand dollars ($1,000) through tax year 2022.2022 2023.
Beginning with tax year 2023,2023 2024, taxable income not in excess of one thousand dollars ($1,000) shall be exempt.
This act shall become effective on the first Page 2 HB116 INTRODUCED day of the third month following its passage and approval by the Governor, or its otherwise becoming law.
Page 32 HB116 Engrossed House of Representatives Read for the first time and referred ................21-Mar-23 to the House of Representatives committee on Ways and Means Education Read for the second time and placed ................05-Apr-23 on the calendar:
amendment Read for the third time and passed ................06-Apr-23 as amended Yeas 105 Nays 0 Abstains 0 John Treadwell Clerk Page 3
Amendments
2 amendmentsClick Show changes on an amendment above to see how it modifies the bill.
Action History
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Referred to Committee
Sponsors
- Danny Garrett · Primary
Sponsorship breakdown
Export CSV (upgrade) →1 sponsors · 0 co-sponsors · 139 not signed on
Sponsors (1)
Co-sponsors (0)
None.
Not signed on (139)
139 members have not signed on to this bill.
Show all 139 →"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.
Votes
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 5 | 0 | 0 | 0 |
| R | 71 | 0 | 0 | 0 |
| D | 26 | 0 | 0 | 0 |
| Total | 102 | 0 | 0 | 0 |
| % of votes cast | 100% | 0% | 0% | 0% |
How each member voted (102)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 5 | 0 | 0 | 0 |
| R | 71 | 0 | 0 | 0 |
| D | 25 | 0 | 0 | 1 |
| Total | 101 | 0 | 0 | 1 |
| % of votes cast | 99% | 0% | 0% | 1% |
How each member voted (102)
| Party | Yea | Nay | Present | Not Voting |
|---|---|---|---|---|
| Unaffiliated | 5 | 0 | 0 | 0 |
| R | 71 | 0 | 0 | 0 |
| D | 26 | 0 | 0 | 0 |
| Total | 102 | 0 | 0 | 0 |
| % of votes cast | 100% | 0% | 0% | 0% |
How each member voted (102)
Subjects
Frequently asked questions
- What does HB 116 do?
- Taxation and revenue, individual income tax lowest bracket eliminated
- Who sponsors HB 116?
- HB 116 is sponsored by Danny Garrett (R).
- What is the current status of HB 116?
- This bill died with 2023 Regular Session. It reached “In Committee” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
- Where can I track HB 116?
- Track HB 116 free on One Click Politics — get push/email alerts when it moves.
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Last checked for changes 3 months ago · updated continuously
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