State Sen. Dan Roberts (R-Mountain Brook) spoke on Sunday with Alabama Today about tax relief and reform proposals that the legislature is looking at in order to help Alabama families “that are really struggling with inflation.”
The state is flush with cash due to the strength of the Alabama economy and federal stimulus dollars, so lawmakers are anticipating carrying over as much as $2.5 billion from the 2022 fiscal year into FY2023, which begins on October 1.
Roberts told Alabama Today that he is still looking at Sen. Arthur Orr’s (R-Decatur) plan to rebate some of the surplus back to taxpayers in the form of one-time tax rebates.
“I would not be opposed to that,” Roberts commented. “I still need to read the bill though.”
Another proposal that Roberts thinks that the legislature will consider is eliminating the state’s four percent tax on groceries.
“I like the concept of that,” Roberts said. “We need to consider anything we can do to help our people right now that are really struggling with inflation.”
Roberts continued, “This is a big issue. I am an engineer, so I like to look at numbers. I would find that most interesting. I would support that if we can make the numbers work.”
“I think it is closer to $500 million,” Roberts said of the tax revenues brought in by the four percent grocery tax.
There are concerns by many in the legislature that the billions of dollars that the Trump and Biden administrations poured into the economy with CARES and the American Rescue Act are creating a temporary “sugar high” and that state revenues might fall back to where they were pre-pandemic.
“You have to take a look at the total influx of moneys coming into the state,” Roberts explained.
Another big issue that the legislature is likely to take up is renewing Alabama’s economic incentives.
Alabama Commerce Secretary Greg Canfield is urging the legislature to pass incentives renewal legislation.
“These are pay-as-you-go incentives. They are sustainable,” Canfield told reporters following a meeting of the legislative oversight committee. “Pay-as-you-go means companies have to perform and create new revenues before they can ever be paid an incentive. And that’s the best checks-and-balances system.”
Roberts explained that Canfield has a bill to modernize incentives to help bring businesses to Alabama. “I am not opposed to the concept of that bill.,” Roberts stated.
“We have to remain competitive with other southeastern states, and incentives are a major component of that,” Roberts explained. “We are competing against the other 48 continental U.S. States as well as foreign countries.”
“We passed, and the Governor signed the Alabama competitiveness Act In 2021,” Roberts said. “It adds a great deal of competitiveness. Alabama businesses and corporations are getting their tax returns back now, and they are pleased with what we have done.”
Roberts said that much of the focus of legislators right now is on the November 8 general election.
“I do have a Libertarian running against me,” Roberts said. “There is a lot of work that goes into a Senate race. I am very focused on our situation locally.”
Roberts was optimistic that Republicans will be able to hold their supermajority in the Alabama Senate.
“I am looking at every other race across the state,” Robert said.
“There are some guys I still haven’t met,” Roberts said, referring to Republican State Senate nominees.
Dan Roberts represents Alabama Senate District 15. SD15 includes parts of Jefferson, Shelby, and Talladega Counties.
Unless Governor Kay Ivey calls a special session, the State Legislature will not meet again until January and then for a brief organizational session where rules and leadership will be set for the next quadrennium.
The next regular session will not begin until March.
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