MONTGOMERY, Ala. (WIAT) — If you filed taxes in Alabama for 2021, you could be seeing more money in your bank account later this year.
Lawmakers Thursday night and into Friday morning passed both the General Fund and Education Trust Fund budgets, including a $150 tax rebate for single filers.
It now heads to Gov. Kay Ivey, who initially called for $400 rebates in her State of the State address.
“It’s only right … that we give a fair share of this money directly back to the people of Alabama,” Ivey said in March.
But lawmakers cut that down as multiple tax cut proposals competed for the state’s roughly $2.8 billion surplus. Lawmakers supporting the rebates have said that with inflation, giving money back to the people is the right move.
Others have voiced concerns over how much impact it will really have.
“It’s a good political soundbite: We’re going to give the taxpayers a rebate,” Rep. A.J. McCampbell (D-Linden) said.
McCampbell worries the money won’t go to the people who might benefit from it most, like those living off retirement benefits or who don’t make enough to file.
“Most of the taxpayers probably, that $150, would not really — it would be absorbed into something, their bank account or savings account,” McCampbell said. “It was a promise of the governor that we do a rebate and we wanted to help her live up to that promise.”
The bill is now in the hands of Ivey for approval or veto.
“It is a real political plum for Governor Ivey to be able to get that,” political analyst Steve Flowers said. “So, I think that’s the reason that was put in there.”
Flowers said whether or not it will make a huge impact on most Alabamians, it at least looks good for the state.
“It really doesn’t do a lot,” Flowers said. “But it’s good publicity, and it sounds good. And she’ll get credit for it.”
It’s estimated the rebate will cost the state about $393 million and go out to 1.9 million tax filers. If approved by the governor, the rebate would go out this November.