SB187 Alabama 2018 Session

Summary

Primary Sponsor

Bill Hightower

Republican

Session

Regular Session 2018

Title

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

Summary

SB 187 would require any tax credit, exemption, deduction, or preferential tax rate enacted starting in 2019 to expire within seven years of the act that created it, unless the Legislature extends it.

What This Bill Does

If approved, this constitutional amendment sets a seven-year sunset for new tax expenditures beginning with the 2019 Regular Session. A tax expenditure is any provision that reduces state revenue through an exclusion, exemption, deduction, or a special credit or rate. Extensions beyond seven years would require a new act by the Legislature.

Who It Affects

• Taxpayers who benefit from tax expenditures (individuals and businesses).
• Alabama state and local government revenue and budgeting, since sunsets would reduce ongoing revenue unless extended.
• Legislators and voters, who would decide whether to extend or renew tax expenditures through future laws and elections.

Key Provisions

• Beginning in the 2019 Regular Session, any tax expenditure enacted shall expire within seven years from the act's effective date.
• Extensions beyond seven years can only be made by a subsequent act of the Legislature (no automatic renewal).
• Defines 'tax expenditure' as any law that allows a special exclusion, exemption, or deduction, or provides a special credit or preferential tax rate that reduces state revenue.
• Requires the amendment to be approved by voters in a constitutional election, following the described ballot process.

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