SB405 Alabama 2017 Session

Summary

Primary Sponsor

Bill Hightower

Republican

Session

Regular Session 2017

Title

Tax credits, exemptions, deductions, enacted in 2019 Reg. Sess., or thereafter, expiration within five years from effective date, const. amend.

Summary

A constitutional amendment to sunset tax expenditures after five years unless renewed by the Legislature.

What This Bill Does

If passed, any tax expenditure enacted starting with the 2019 Regular Session would expire five years after the act authorizing it becomes effective, unless the Legislature passes another act to extend it. A tax expenditure is a law that creates a revenue loss for the state by providing exclusions, exemptions, deductions, credits, or a preferential tax rate. The amendment would be decided by voters in an election, with the ballot describing the change.

Who It Affects

• Taxpayers and businesses that receive or benefit from tax expenditures, who would lose those benefits after five years unless extended.
• State government and lawmakers, who would need to reauthorize or extend tax expenditures, subject to voter approval.

Key Provisions

• Beginning in the 2019 Regular Session, any tax expenditure enacted shall expire five years from the effective date of the act authorizing the tax expenditure, unless extended by an act of the Legislature.
• Tax expenditure is defined as any provision that allows a special exclusion, exemption, or deduction, or provides a special credit or preferential tax rate that creates a loss of revenue for the state.
• An election shall be held to adopt the constitutional amendment.
• The ballot description must clearly state the amendment’s substance and that it would expire tax expenditures after five years unless extended.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Constitutional Amendments