Good news for small businesses: A hefty and complicated tax hike was defeated in committee before making it to the Senate floor.
The bill in question was Senate Bill 67, sponsored by Sen. Linda Coleman-Madison of Birmingham. Under SB 67, a “combined reporting tax” would have been implemented. This would have attributed more income for a corporation—and thus taxable to the state—than what is justified by the corporation’s actual economic activity in the state. It would have been a complicated tax increase that strangles economic activity and imposes a new administrate burden on businesses. Additionally, estimates for this tax hike on corporations were tallied at about $20 million per year.
Following a public hearing, the Fiscal Responsibility and Economic Development Committee voted no on the bill by a 12-2 vote.
