SB26 Alabama 2011 Session

Updated Feb 27, 2026

Notable

Summary

Primary Sponsor: Cam Ward
Republican
Session: Regular Session 2011
Title: Military personnel, on active duty deployed outside of State of Alabama in a combat zone or a qualified hazardous duty area and who are Alabama residents, compensation exempt from state income tax, duties to Revenue Department (2011-20196)
Summary: This bill would exempt Alabama state income tax on military pay for Alabama-resident service members on active duty deployed in combat zones or qualified hazardous duty areas.
What This Bill Does
It would exempt all income received by Alabama-resident military personnel on active duty in combat zones or qualified hazardous duty areas from Alabama state income taxes. The exemption applies specifically to compensation for active-duty service in those areas and would override existing tax rules. The Alabama Department of Revenue would create rules to implement the exemption, and the act would take effect on the first day of the third month after it becomes law.

Who It Affects
Alabama-resident military personnel on active duty who are deployed outside Alabama in combat zones or qualified hazardous duty areas, whose compensation would be exempt from Alabama state income tax.
Alabama Department of Revenue (and its staff), which would promulgate and implement rules to administer the tax exemption.

Key Provisions
Exempts all income received by military personnel who maintain Alabama residency and are on active duty deployed in a combat zone or qualified hazardous duty area from Alabama state income taxes.
Defines Combat Zone, Military Personnel, and Qualified Hazardous Duty Area.
Notwithstanding Section 40-18-3, the income tax exemption applies to compensation for active-duty service in these areas.
The Commissioner of the Department of Revenue shall promulgate and implement rules to carry out this exemption.
The act becomes effective on the first day of the third month following its passage and governor's approval.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.
Subjects: Taxation