Bills that would change Alabama incentives for business prospects, hiring veterans, and developing projects in rural areas passed the House and were sent to the Senate Fiscal Responsibility and Economic Development Committee.
The 105-member House passed all three bills with more than 100 votes each. The Alabama Department of Commerce-endorsed bills would provide incentives on a "pay-as-you-go" basis. Proponents say the incentives will prove to be more valuable for industrial recruitment than the current capital credit.
On a vote of 102-1, the House passed an amended HB 57, the Alabama Veterans and Rural Jobs Act sponsored by Rep. Elaine Beech, D-Chatom. The amendment raises the population eligibility for a rural county from 50,000 to 70,000.
The House voting 101-0 passed HB 58, the Alabama Jobs Act sponsored by Rep. Alan Baker, R-Brewton.
HB 59, the Alabama Reinvestment and Abatements Act, by Rep. Paul Lee, R-Dothan, passed the House by a vote of 103-0 and has been assigned to the Senate committee on Fiscal Responsibility and Economic Development.
For further information on these bills, see last week's Capital Briefing.
More of Governor Bentley's Tax Increase Bills Introduced
Last week, HB 142 by Rep. Mike Hill, R-Columbiana, was filed. It would establish mandatory unitary combined reporting for Alabama corporations. Several additional tax increase proposals received their first readings this week:
HB 139 by Rep. Steve McMillan, R-Gulf Shores, would increase the tax on cigarettes and other tobacco products and adjust the discount allowed on tobacco stamp purchases;
HB 201 by Rep. Lynn Greer, R-Rogersville, would eliminate the credit for sales and use taxes for financial institutions (primarily banks) that are subject to the excise tax.
HB 267 by Rep. Steve Clouse, R-Ozark, would increase the motor vehicle rental tax from 1.5 percent to 4 percent;
HB 268 by Rep. Clouse would increase the sales and use tax on motor vehicles from 2 percent to 3 percent.
HB 276 by Rep. Chris England, D-Tuscaloosa, would require any public, private or municipal utility corporation to pay a state license tax equal to 2.2 percent on each $1 of gross receipts.
HB 277 by Rep. John Knight, D-Montgomery, would repeal tax credits for facilities and real property that are applied to the insurance premiums tax.
Courtesy of the Business Council of Alabama
