Alabama lawmakers change tax rebate proposal again

Alabama lawmakers change tax rebate proposal again

State lawmakers have again changed the amount of a proposed one-time tax rebate for Alabama households.

Gov. Kay Ivey proposed a rebate of $400 for individuals and $800 for couples during her state of the state address on March 7 and in her education budget proposal two weeks later.

The Senate reduced that to $105 for individuals and $210 for couples.

Today, the House Ways and Means Education budget committee doubled the amount approved by the Senate, setting it at $210 for individuals and $420 for couples.

The rebates would cost $550 million and would be paid from a $2.8 billion surplus from the Education Trust Fund. The surplus is available because tax revenues to the ETF exceeded expenditures during the last fiscal year, which ended Sept. 30. The budget committee is considering a separate bill to allocate the remainder of the surplus.

The rebate bill moves to the House, which could consider it as early as Thursday.