MONTGOMERY, Ala. — The state legislative session begins Tuesday and Alabama lawmakers plan to bring a bill to the legislature that would stop stimulus checks from being taxed by the state.
Lawmakers say this would also apply to small business loans and the Paycheck Protection Program.
The federal government has issued two stimulus checks totaling $1,800 to help Americans during the COVID-19 pandemic.
“In the state of Alabama right now, if you’ve received your stimulus checks then they are subject to state taxes,” says Representative Andy Whitt.
House Bill 98 is sponsored by Representative Andy Whit. The bill would ensure Alabamians aren’t liable for state taxes on stimulus checks or forgiveness of PPP loans for small businesses.
“I took it as a poke in the eye you know we’re here to help people during this pandemic and then the state of Alabama is going to turn around and tax them? That is not right. Its not right in anyone’s book,” says Whitt.
He says governor ivey already passed an executive order saying the funds from stimulus checks are not taxable at this time.
If this bill is passed, it formalizes that executive order and makes it a law so that no checks in the future could be taxed by the state.
“It is a bill that the governor has identified and would like to get done. It needs to get done. Over two and a half million citizens have received stimulus checks and 75 hundred businesses across Alabama so its a wide bill across the state of Alabama that is wildly popular,” says Whitt.
Representative Whitt says this bill has bipartisan support and he hopes to get the bill passed quickly in this session.
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