SB303 Alabama 2018 Session

Summary

Primary Sponsor

Bill Hightower

Republican

Session

Regular Session 2018

Title

Taxation, corporate income tax rate reduction trigger, Amendment 212, Constitution of Alabama of 1901, am'd, const. amend.

Summary

SB 303 would amend Alabama's Constitution to create an automatic corporate income tax rate reduction trigger based on state receipts.

What This Bill Does

It modifies Amendment 212 (as amended) to establish a corporate income tax rate schedule that currently peaks at 6.5% starting in 2001, with federal income taxes deducted when computing Alabama corporate tax and with proportional deductions for foreign corporations. Beginning after December 31, 2018, if gross corporate income tax receipts for a fiscal year exceed $550 million, the rate would automatically decrease by 0.3 percentage points on the following January 1. The changes are self-executing and require no new legislation, and voters would need to approve the constitutional amendment in an election before it becomes law.

Who It Affects

• Alabama-based corporations (and foreign corporations operating in Alabama) would face an automatic, progressively reduced corporate income tax rate if revenue triggers are met, along with the applicable federal tax deduction rules in calculating Alabama taxable income.
• State government finances and Alabama taxpayers would experience changes in corporate tax revenue over time due to automatic rate reductions triggered by higher receipts, potentially affecting the state budget and funding for programs.

Key Provisions

• Maintains a corporate income tax framework with a 6.5% rate starting in 2001, with federal tax paid/due deductions allowed in calculating Alabama taxable income.
• Introduces a self-executing, automatic 0.3 percentage point reduction in the corporate tax rate on the January 1 after any fiscal year that gross corporate income tax receipts exceed $550,000,000.
• The amendment would require voter approval in an election to become part of the Constitution.
• Changes apply to Amendment 212 (as amended by Amendment 662) and would be enacted as a constitutional amendment.

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