Eye on Politics
Paul DeMarco
There is a lot of debate at the Alabama statehouse these days as lawmakers decide whether to enact a permanent tax cut or a one and done tax rebate.
In her state of the state address, Gov. Kay Ivey proposed that legislators take surplus funds and give each taxpayer a simple one-time $400 rebate or each family $800. When it comes to legislation, Ivey has been pretty successful with what she has wanted on Goat Hill. Thus, it would have been a reasonable assumption to believe the governor’s wishes would have made it to her desk in the form of a bill for her signature.
However, there is now a lot of steam for a long-term proposal to remove the 4% state grocery sales tax. This has been debated for years, and Alabama is one of only a few states that has the tax.
The income from the tax goes to the state education trust fund to the tune of some $500 million each year. The tax has never been removed before because the funds go to support Alabama public education, but with a surplus of $2 billion this may be the year the state finally removes the grocery tax once and for all.
So will state representatives and senators sidestep the governor’s plans for taxpayers and substitute their own plans?
There is a lot of time left in the session for state leaders to decide how to proceed forward. The governor has not backed off of her proposal, and the education community has always opposed any efforts to terminate taxes that fuel Alabama public education.
We will see if Alabama taxpayers finally get the permanent tax relief that they have desired for years in the next 90 days.
Paul DeMarco is a former member of the Alabama House of Representatives and can be found on Twitter at @Paul_DeMarco.
