Legislature adjourns sine die
The Alabama Legislature adjourned sine die for the 2018 Regular Session on Thursday March 29th, one day later than expected. The General Fund budget was signed into law last week and the Education Budget Conference Committee was approved by the Alabama Senate as their last action. Gov. Ivey is expected to sign the Education Budget.
NFIB will provide a 2018 Legislative Victories report at the end of the 10-day period allowed for the Governor to sign or veto bills.
Three bills that did not receive final passage
Unemployment bill
SB 92 by NFIB member Sen. Arthur Orr (Decatur)/(Rep. Danny Garrett (Trussville) did not pass but Sen. Orr will introduce the bill for the 2019 legislation session. SB 92 would have made significant changes to the current unemployment law. The bill would have reduced the maximum number of weeks that unemployment compensation benefits are payable from 26 weeks to the lesser of 14 weeks, or a maximum of 20 weeks, depending upon the average unemployment rate for any benefit year after Jan. 1, 2019. The bill would have allowed a higher weekly benefit amount increasing from $265 to $275. The bill included a 5-week extension for anyone who was enrolled in a state approved training program. As estimated by the Legislative Fiscal Office, the bill would have lower unemployment taxes annually by $53 million for Alabama business owners.
“Lodging Tax”
SB 226 by Sen. Paul Sanford (Huntsville)/Rep. Arnold Mooney (Birmingham) also did not pass. SB 226 specifically stated the lodging tax law only applies to overnight guests lodging and not for the rental or use of wedding chapels, banquet or conference rooms or parking associated with a meeting. The bill was in response to the Department of Revenue’s (DOR) interpretation of their expanded definition of the application of the lodging tax. NFIB member Stone Bridge Farms (Cullman) presented their case to the Alabama Tax Tribunal after DOR assessed the lodging tax on the wedding chapel and other banquet rooms at their business. DOR’s rule 810-6-5-.13 was struck down by the Alabama Tax Tribunal. The ruling stated Stone Bridge owed $0 tax. Rep. Mooney will reintroduce the bill for the 2019 legislative session.
Penalties for attorneys who encourage litigation
HB 119 by Rep. Matt Fridy (Birmingham)/Sen. Cam Ward (Alabaster) was included on the Senate Special Order Calendar but did not receive final passage. The bill would increase the penalty from $1,000 to $10,000 and imprisonment from six months to one year in the county jail or hard labor for an attorney who gives money to a person for encouraging that person to bring legal action against another. Rep. Fridy will reintroduce the bill for the 2019 legislative session.
“Classification of a farmer” receives final passage
HB 242 by Rep. David Sessions (Grand Bay) passed 97-0 in the House earlier in the session and Sen. Tom Whatley (Auburn) successfully passed the bill 29-0 in the Senate. The legislation grants a sales tax exemption for a farmer who cultivates and harvests an agricultural product on leased or rented land. The bill exempts the sale of pine straw products by the person who harvested the product. Last year, a NFIB member contacted the state office when he was audited by the Al. Dept. of Revenue (DOR). Since he leased land to cultivate his pine straw, DOR interpreted the statutory meaning as the NFIB member did not plant the tree, hence he was not a farmer and could not wholesale his product. The bill clearly states if you lease or rent land to cultivate an agricultural product, you are classified as a farmer.
Gov. Ivey is expected to sign the bill.
Signed into law
“Traveling through the jurisdiction”
HB 107 by Rep. Paul Lee (Dothan) unanimously passed the Senate with Sen. Paul Sanford (Huntsville) handling the bill on the Senate floor. The legislation would provide that a business license is not required for a person traveling through a municipality on business if the person is not operating a branch office or doing business in the municipality.
Act No. 2018-411
Irrigation Tax Credit
HB 260 by Rep. Donnie Chesteen (Geneva)/Sen. Arthur Orr (Decatur) unanimously passed the Senate. The bill amends the current irrigation tax credit to allow an eligible taxpayer to collect one tax credit during the tax years of 2011-2017 and one tax credit during tax years 2018-2022. This legislation was requested by several NFIB CPAs who have agriculture and forestry clients.
Act No. 2018-468
St. Rep. Reynolds sworn in
State Representatives Rex Reynolds was sworn in as the newest member of the House of Representatives. A special election was held due to a vacancy in House District 21 following the unexpected death of Rep. Jim Patterson. Rep. Reynolds has qualified to run for a full term and he will be on the November ballot.
NFIB co-sponsored legislative dinner
NFIB joined with the Alabama Forestry Association and others in co-hosting the final 2018 legislative dinner with members of the Alabama Legislature. The event was pre-approved by the Alabama Ethics Commission. Retiring Alabama senators were recognized and thanked for their service. NFIB St. Director Rosemary Elebash made remarks, along with others. Those attending were Sen. Pro Tem Del Marsh (Anniston), Sens. Gerald Allen (Tuscaloosa) Steve Livingston (Scottsboro), Tim Melson (Florence), Arthur Orr (Decatur), Clay Scofield (Guntersville), Larry Stutts (Tuscumbia), Phil Williams (Gadsden), Greg Albritton (Bay Minette), Paul Bussman (Cullman), Rusty Glover (Mobile), Jimmy Holley (Elba), Trip Pittman (Daphne), and Paul Sanford (Huntsville).
Investiture Ceremony at Supreme Court
Supreme Court Associate Justice Brad Mendheim was honored at his Investiture Ceremony this week. Earlier this year, Justice Mendheim was appointed by Gov. Kay Ivey to fill the associate justice vacancy created when Associate Justice Glenn Murdock resigned from the Alabama Supreme Court. The ceremony and reception were held at the Heflin-Torbert Judicial Building in Montgomery.
Tang’s cuts ribbon on new building
NFIB Leadership Council member Sieu Tang Wood invited NFIB Al. St. Director Rosemary Elebash along with elected officials and her customers to help cut the ribbon on the opening of the newly constructed building for Tang’s Alterations in Montgomery.
Sieu and her sister immigrated to the U.S. in 1973 with $275 and she has built a thriving alterations and dressmaking business. Five years after arriving in the U.S., her children and other family joined her. “When I first came to the U.S., I knew as long as I followed the right direction, I would get there one day. You cannot get there by shortcuts; nothing is that easy. I feel the U.S. is really everybody’s dream, but you have to make your legs move, go out there and do it, don’t just sit there dreaming,” she said.
Congratulations Sieu!
ALDOR extends filing deadlines for storm victims
Revenue Commissioner Vernon Barnett announced the Alabama Department of Revenue (ALDOR) is extending the deadlines to file tax returns for individuals and businesses who were affected by severe weather on March 19. Clink on link for additional details.
Bills of Interest
Senate Bills
SB 3 by Sen. Gerald Allen (Tuscaloosa) Possession of a firearm (Monitor)
SB 5 by Sen. Paul Sanford (Huntsville) Administrative Procedure Act (Support)
SB 7 by Sen. Gerald Allen (Tuscaloosa) Forfeiture of property (Monitor)
SB 27 by Sen. Jimmy Holley (Elba) Possession of a firearm (Monitor)
SB 63 by Sen. Steve Livingston (Scottsboro) Taxation, joint petition refund (Support)
SB 76 by Sen. Del Marsh (Anniston) Income tax reduction (Support)
SB 86 by Sen. Gerald Dial (Lineville) Road and Bridge Bond (Monitor)
SB 89 by Sen Arthur Orr (Decatur) Gas and motor fuel tax (Monitor)
SB 91 by Sen. Arthur Orr (Decatur) Workers Comp. fraud (Monitor)
SB 92 by Sen. Arthur Orr (Decatur) Unemployment Compensation (Support)
SB 105 by Sen. Hank Sanders (Selma) Repeal of income tax deduction (Oppose)
SB 111 by Sen. Paul Sanford (Huntsville) Tax rate notification (Support)
SB 130 by Sen. Trip Pittman (Daphne) Simplified Sellers Use Tax (Monitor)
SB 132 by Sen. Trip Pittman (Daphne) General Fund Rainy Day Acct. (Support)
SB 160 by Sen. Tom Whatley (Auburn) Expungement of criminal records (Oppose)
SB 187 by Sen. Bill Hightower (Mobile) Expiration of tax credits, exemptions and deductions (Oppose)
SB 191 by Sen. Tom Whatley (Auburn) Sales tax exemption for agricultural and fruit sales (Support)
SB 198 by Sen. Bobby Singleton (Greensboro) Ban the Box for public employees (Monitor)
SB 213 by Sen. Arthur Orr (Decatur) Asset forfeitures (Support)
SB 226 by Sen. Paul Sanford (Huntsville) Lodging tax clarification (Support)
SB 233 by Sen. Steve Livingston (Scottsboro) Income Tax threshold (Support)
SB 253 by Sen. Clyde Chambliss (Prattville) Business License surety bond (Monitor)
SB 299 by Sen. Gerald Dial (Lineville) Increase state sales and use tax to phase out tax on food (Monitor)
SB 307 by Sen. Trip Pittman (Daphne) Simplified Sellers Use Tax amended (Monitor)
SB 317 by Sen. Tom Whatley (Auburn) Veteran owned business fee waiver (Monitor)
SB 318 by Sen. Arthur Orr (Decatur) Security Breach/Consumer Protection (Monitor)
SB 342 by Sen. Rodger Smitherman (Bham) Income Tax (Monitor)
SB 343 by Sen. Del Marsh (Anniston) Ethics update (Monitor)
SB 349 by Sen. Billy Beasley (Clayton) Business license exemption for drug stores (Support)
SB 353 by Sen. Vivian Figures (Mobile) Increase ad valorem taxes to fund Medicaid (Oppose)
SB 356 by Sen. Paul Sanford (Huntsville) Income Tax credit for business who loses an employee to another business receiving tax incentives from state government (Support)
SB 375 by Sen. Bill Hightower (Mobile) Revise income tax rates, eliminate tax credits and deductions (Monitor)
SB 380 by Sen. Greg Albritton (Bay Minette) Revise Administrative Procedure (Monitor)
SB 390 by Sen. Hank Sanders (Selma) Repeal federal income tax deduction (Oppose)
House Bills
HB 17 by Rep. Steve Clouse (Ozark) U.S. Senate appointment process (Monitor)
HB 25 by Rep. Chris Pringle (Mobile) Transportation Commission (Monitor)
HB 49 by Rep. Chris England (Tuscaloosa) Final wages to be timely paid (Oppose)
HB 83 by Rep. Connie Rowe (Jasper) Tax credit-hiring unemployed veterans (Support)
HB 107 by Rep. Paul Lee (Dothan) Municipal Business License reform (Support)
HB 110 by Rep. Rod Scott (Fairfield) Simplified Sellers Use Tax (Monitor)
HB 137 by Rep. Ken Johnson (Moulton) Tax Delinquency Amnesty (Monitor)
HB 141 by Rep. Arnold Mooney (Birmingham) Alabama Tax Tribunal (Monitor)
HB 151 by Rep. Ron Johnson (Sylacauga) Two-year surety bond (Monitor)
HB 165 by Rep. Laura Hall (Huntsville) Equal Pay Remedies (Oppose)
HB 198 by Rep. Matt Fridy (Birmingham) Service Animal documentation (Support)
HB 238 by Rep. John Knight (Montgomery) Removal of sales tax on food (Monitor)
HB 242 by Rep. David Sessions (Grand Bay) Sales tax exemption for agricultural and fruit sales (Support)
HB 252 by Rep. Connie Rowe (Jasper) Tax Credits for rural growth funds (Monitor)
HB 257 by Rep. Juandalynn Givan (Birmingham) “Ban the Box” on employment applications (Oppose)
HB 260 by Rep. Donnie Chesteen (Geneva) Irrigation Income Tax deduction (Support)
HB 262 by Rep. Reed Ingram (Montgomery) Income tax reduction (Support)
HB 275 by Rep. Chris Pringle (Mobile) Taxation, joint petition refund (Support)
HB 287 by Rep. Arnold Mooney (Birmingham) Asset forfeitures (Support)
HB 291 by Rep. Arnold Mooney (Birmingham) Lodging tax clarification (Support)
HB 293 by Rep. Bill Poole (Tuscaloosa) Biennial Budgeting (Support)
HB 294 by Rep. Bill Poole (Tuscaloosa) Biennial budget periods (Support)
HB 295 by Rep. Bill Poole (Tuscaloosa) Change fiscal year (Support)
HB 367 by Rep. Laura Hall (Huntsville) Repeal Civil Forfeiture (Monitor)
HB 368 by Rep. Adline Clarke (Mobile) Equal Pay (Oppose)
HB 384 by Rep. Rod Scott (Fairfield) Income Tax (Monitor)
HB 396 by Rep. Craig Ford (Rainbow City) Change school calendar (Monitor)
HB 410 by Rep. Phil Williams (Huntsville) Security Breach/Consumer Protection (Monitor)
HB 470 by Rep. Rod Scott (Fairfield) Changes to the Simplified Sellers Use Tax Remittance Program for out of state vendors (Monitor)
HB 502 by Rep. April Weaver (Alabaster) Daylight Savings Time (Monitor)
HB 508 by Rep. Craig Ford (Rainbow City) Daylight Savings Time/federal conformity (Monitor)
HB 515 by Rep. Craig Ford (Rainbow City) Workers Comp. (Monitor)
HB 518 by Rep. Arnold Mooney (Birmingham) Asset Forfeiture (Monitor)
Direct link to the Alabama Legislature website
NFIB members may use the free Alabama legislative site to find additional information about meetings, bills sponsored by your legislator and other legislative information. Click on the link.
http://alisondb.legislature.state.al.us/alison/default.aspx
Federal
Congress on recess
Congress is on Easter recess this week.
Sign up for the NFIB 75th Anniversary Celebration
NFIB will celebrate the 75th Anniversary with a Fly-In June 18-20 in Washington, D. C.
An email invitation was sent to your email address for sign up. If you have any questions, please contact [email protected]
If you have questions about these or other issues, please call NFIB/Alabama at
334 264-2261.
Sincerely,
Rosemary Elebash
NFIB/Alabama State Director
