Gov. Bentley's Tax Proposal

Governor Robert Bentley’s plan to raise certain taxes will not directly impact all residents but it will be fair to all residents. That’s part of the message the Governor shared today when he revealed his proposal to make up for the $702 million shortfall in the state’s general fund budget. Over the past few years, the state's general fund has been supported with one-time revenue that’s no longer available. Bentley also says the state for decades has moved money around to support the general fund and that’s no longer an option. Bentley’s tax proposal plan will contribute $541 million to the $702 million revenue hole. Approximately $200 million of that will come from a 4 percent sales tax increase on automobiles. Another $205 million will come from tax increases on cigarettes and tobacco. The plan also creates stricter tax guidelines for international and national corporations operating in Alabama. The governor will present his budget proposal to the Alabama Legislature on March 4.


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