SB 303

This bill would propose an amendment to Amendment 212, as amended by Amendment 662, of the Constitution of 1901, now appearing as Section 211.03 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, to provide for a corporate income tax rate reduction trigger

Proposing an amendment to Amendment 212, as amended by Amendment 662, of the Constitution of Alabama of 1901, now appearing as Section 211.03 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, to provide for a corporate income tax rate reduction trigger.

Section 1

The following amendment to the Constitution of Alabama of 1901, as amended, is proposed and shall become valid as a part thereof when approved by a majority of the qualified electors voting thereon and in accordance with Sections 284, 285, and 287 of the Constitution of Alabama of 1901, as amended: PROPOSED AMENDMENT Amendment 212, as amended by Amendment 662, is further amended to read as follows: Amendment 662.

(a) The legislature shall have power to levy and provide for the collection of taxes for state purposes on taxable income of corporations, from whatever source derived, for the calendar year 1963, or for any fiscal year beginning in the calendar year 1963, and each year thereafter, at a rate not exceeding five percent. However, the rate shall be six and one-half percent on taxable income of corporations for the calendar year 2001, or for any fiscal year beginning in the calendar year 2001, and each year thereafter. All federal income taxes paid or accrued within the taxable year by corporations shall always be deductible in computing income taxable under the income tax laws of this state, provided that in the case of foreign corporations the amount of federal income tax deductible shall be in proportion to income derived from sources within Alabama, to be determined in accordance with such laws as the legislature may enact. The increase in the corporate income tax rate to six and one-half percent provided by this amendment shall be self-executing and shall require no enabling legislation.

(b) Beginning in tax years after December 31, 2018, the rate shall be decreased by three-tenths of a percent (0.3%) the following January 1 after the close of any fiscal year that the gross corporate income tax receipts exceed five hundred and fifty million dollars ($550,000,000)."

Section 2

An election upon the proposed amendment shall be held in accordance with Sections 284 and 285 of the Constitution of Alabama of 1901, now appearing as Sections 284 and 285 of the Official Recompilation of the Constitution of Alabama of 1901, as amended, and the election laws of this state.

Section 3

The appropriate election official shall assign a ballot number for the proposed constitutional amendment on the election ballot and shall set forth the following description of the substance or subject matter of the proposed constitutional amendment:

Proposing an amendment to the Constitution of Alabama of 1901, to amend Amendment No. 212, as amended by Amendment No. 662, to the Constitution of Alabama of 1901, now appearing as Section 211.03 of the Official Recompilation of the Constitution of Alabama of 1901 as amended, to provide for a corporate income tax rate reduction trigger."

Proposed by Act ________." This description shall be followed by the following language:

Yes ( ) No ( )."