Alabama commission looks at further grocery tax cuts, potential revenue replacement
Alabama commission looks at further grocery tax cuts, potential revenue replacement by Jemma Stephenson, Alabama Reflector November 15, 2023 Members of a state commission looking at the impact of grocery tax repeal looked at the recent cut to the tax, the potential for slower education budget growth, and alternate revenues. Alabama in September cut the state’s 4% tax on groceries to 3%, the first reduction in the tax since it was first implemented in 1939. Prior to the cut, Alabama was one of only three states that fully taxed groceries, driving some local levies as high as 10%. Cuts to the tax have been a long-term goal of anti-poverty groups, which said the tax affected food security and the ability of low-income Alabamians to feed children, as well as conservatives in favor of cutting taxes. “It impacts lower income Alabamians more harshly than it impacts higher income Alabamians,” said commission member Akiesha Anderson, policy and advocacy director of Alabama Arise. The bill froze but did not reduce local taxes on groceries. If the Education Trust Fund (ETF) budget, where proceeds from the tax go, grows by 3.5% next year, the state tax will be cut to 2%. “We’re all excited about that possibility coming sooner rather than later,” said Sen. Andrew Jones, R-Centre. Kirk Fulford, deputy director of the fiscal division of the legislative services agency, said Tuesday that “later” seemed more likely. The director told the committee that he was not predicting growth in the ETF for Fiscal Year 2024. “Just based on the first month, I mean, we’re in negative growth,” said Fulford after the meeting. Publicly available information on the Education Trust Fund shows that income tax returns were lower in October than they were last October, the biggest drop in the Education Trust Fund. The Education Trust Fund is around $74.4 million lower than it was this time last year. About $54.7 million of that decrease is from income tax. Fulford said to reporters after the meeting that there are four parts to the income tax. He said withholding, or taxes withheld from a paycheck, has kept up with Alabama’s low unemployment. “The other components are what, first of all, jumped way up and then last year came right back down,” he said to reporters after the meeting. Fulford said over email before the meeting that October 2022 receipts last year were up by $65 million, so this year could be a return to normalcy after several years of drastic increases. Fulford said cutting local grocery taxes could affect local governments, who sometimes levy higher taxes on groceries than the state. “So there would be a bigger dollar figure impact at the local level if you eliminated all the groceries,” he said. House Ways and Means Education Committee chair Danny Garrett, R-Trussville, said in October that he did not expect to cut the tax further in the next legislative session, which begins in February. Commissioners brought up a number of different ways that revenues could be potentially restored to the Education Trust Fund. Anderson said she thinks that more tax dollars for education means better education. Alabama spends less on average than the national average on per pupil spending. According to the U.S. Census data released in May, Alabama spent $10,683 per student in fiscal year 2021, compared to a national average of $14,347. One idea was taxing services after first being brought up by Anderson. “I will point out that you are absolutely right; the economy and the world that we’re living in as a service economy, the state of Alabama, local governments don’t generally tax services on a broad scale, that may very well be something to look at to consider to investigate,” said Fulford. Fulford and Rosemary Elebash, state director for the National Federation of Independent Businesses, said that it had been discussed in the 1990s and later under former Gov. Bob Riley, who was in office from 2003 to 2011. Elebash said there were concerns about that also being a regressive tax. “They went so far as to tax haircuts, vet services, and people are unhappy when you start taxing their dogs and cats,” said Elebash about a previous attempt. Anderson asked if there had been any thought about taxing professional services, such as attorneys, that might avoid the regressive structure. Fulford said that there had been an occupational tax issue in Jefferson County that led to multiple lawsuits. “But there certainly has been an issue,” he said. The Joint Study Commission was formed to study the grocery tax and will file a report in 2026 after annual meetings. “Not to procrastinate, of course, but we got some time to get our homework done,” said Jones. Alabama Reflector is part of States Newsroom, a network of news bureaus supported by grants and a coalition of donors as a 501c(3) public charity. Alabama Reflector maintains editorial independence. Follow Alabama Reflector on Facebook and Twitter.
Kay Ivey supports Small Business Saturday
On Wednesday, Gov. Kay Ivey expressed her support for Alabama’s small businesses by signing a proclamation declaring November 26, 2022, as Small Business Saturday in Alabama. By designating the Saturday following Thanksgiving Day as Small Business Saturday, Alabamians are encouraged to celebrate and support the impact small businesses have on communities across the state. “Not only do our small businesses bring charm and character to Alabama, but they play an integral role in building and maintaining a strong economy. Small business support trickles back down to opportunities for job creation, support for our schools, possibilities for new innovation, but ultimately, it is positively felt by all,” said Gov. Ivey. “I encourage all Alabamians to support small businesses and spend locally this Saturday. Simply put, when you support an Alabama small business, you support our state.” The National Federation of Independent Business (NFIB) applauded Governor Ivey’s proclamation. “Small Business Saturday is a great way for the community to support local and family-owned businesses,” said Rosemary Elebash, NFIB Alabama State Director. “Small business owners are coming out of the pandemic facing serious economic headwinds such as inflation, worker shortages, and ongoing supply chain disruptions. Now more than ever, small businesses need support not only on Small Business Saturday but every day. Small businesses are the backbone of Alabama’s economy, and we encourage everyone to shop small this holiday season.” According to research conducted by NFIB and American Express, 67 cents of every dollar spent at a family-owned small business stays in the community. Every dollar spent at a local small business creates an additional 50 cents in local business activity as employers and their employees shop at other local businesses. NFIB is the nation’s leading small business advocacy organization. In 2011, the Senate unanimously passed a resolution in support of Small Business Saturday, and officials in all 50 states participate. It even gets a shout-out from the president of the United States. To connect with the author of this story, or to comment, email brandonmreporter@gmail.com.
National Federation of Independent Businesses endorses Katie Britt for U.S. Senate
Republican nominee for U.S. Senate Katie Boyd Britt announced on Monday that her campaign has been endorsed by the National Federation of Independent Business (NFIB), the nation’s leading small business advocacy organization. The NFIB endorsement was announced at a campaign event hosted at NFIB member small business Tang’s Alterations in Montgomery on Friday. “Katie Britt has shown a strong commitment to small business, especially during the COVID-19 lockdown,” said Rosemary Elebash, NFIB Alabama State Director. “NFIB worked closely with Katie when she represented the Business Council of Alabama. We were partners on multiple issues with the Governor’s office, including implementing Alabama Small Business Grants, replenishing the Alabama Unemployment Trust Fund to avoid a 500% tax increase, passing COVID-19 liability protection for businesses, and serving together on the Lt. Governor’s Small Business Emergency Task Force Committee to ‘Reopen Alabama Responsibly.’ During the campaign, Katie has visited with small business owners in all 67 counties and heard their concerns about government overreach with taxes, mandates, rules, and regulations. She will work closely with NFIB to promote policies to assist small businesses when she is elected to the U.S. Senate.” The endorsement was issued by NFIB FedPAC, NFIB’s political action committee. NFIB FedPAC is funded by voluntary contributions by NFIB members over and above their membership dues. Decisions made by the NFIB FedPAC are managed by a member-driven grassroots evaluation. “We are confident that Katie Britt will be a voice for small business owners in Congress,” said Sharon Sussin, NFIB Senior National Political Director. “She has proven to be a consistent small business supporter and understands the challenges small business owners face. We are pleased to endorse her today.” “I’m honored to have the endorsement of NFIB and Alabama’s incredible small businesses,” said Katie Britt. “Growing up as the daughter of two small business owners in the Wiregrass, I saw firsthand the challenges my parents faced and the sacrifices they made for our family and their team members — just as small business owners across Alabama do every day. In the U.S. Senate, I’m going to be a champion for small businesses in every corner of our great state, and I’ll fight to ensure Main Streets are able to grow and thrive.” Prior to her run for Senate, Britt was the President and CEO of the powerful Business Council of Alabama (BCA), a close ally of NFIB. Britt has already announced the respective endorsements of the Home Builders Association of Alabama, the Alabama Farmers Federation’s FarmPAC, the Alabama Retail Association, Manufacture Alabama, the Automobile Dealers Association of Alabama, the Alabama Forestry Association, the Associated Builders and Contractors of Alabama, the League of Southeastern Credit Unions, the Alabama Restaurant and Hospitality Association, University of Alabama Crimson Tide legend Siran Stacy, Mobile Mayor Sandy Stimpson, the Alabama Mining Association, U.S. Senator Tom Cotton, former White House press secretary Sarah Huckabee Sanders, U.S. Senator Joni Ernst, the Alabama Rural Electric Association of Cooperatives, former President Donald Trump, the National Association of Realtors PAC, Associated General Contractors of America PAC, U.S. Senator Tim Scott, U.S. Senator Tommy Tuberville, National Right to Life, and SBA Pro-life America. Britt grew up working at several small businesses. She is an attorney and is a former chief of staff for U.S. Senator Richard Shelby, whose seat she is running for. Shelby is retiring at the end of the year and has endorsed Britt. Britt has a bachelor’s degree from the University of Alabama and a law degree from the University of Alabama School of Law. She is a native of Coffee County and is a graduate of Enterprise High School. Britt is married to former University of Alabama and New England Patriots football player Wesley Britt. They reside in Montgomery with their two children. Britt faces Libertarian nominee John Sophocles and Democratic nominee Dr. Will Boyd in the November 8 general election. To connect with the author of this story, or to comment, email brandonmreporter@gmail.com.
Secretary of State’s Office further streamlines online business filings
John Merrill continues efforts to ease the burden on small businesses by further improvements to the state’s website. The Alabama Secretary of State has launched a new online business amendment tool. The tool enables users to file amendments to their business filings online instead of just in paper form. It will help modernize the state’s business filings process, a goal Secretary of State John Merrill has prioritized. In the past, business entities were only able to file amendments to their business filings using a paper form. However, the Business Filing Amendments portal will allow certain business entities to amend their filings electronically. In 2018, Secretary Merrill streamlined corporate filings so that they are processed the same day that they are received. That same year, he also implemented an online filing system to allow businesses to complete the registration process more efficiently and without added processing fees. Since January 2021, 87% of all new business formations have been filed through the Secretary of State’s online portal. This new online business filing tool will be equally beneficial and will streamline services for businesses and enable them to file amendments to their existing business filings more quickly. Alabama State Director of the National Federation of Independent Businesses Rosemary Elebash stated, “NFIB Alabama members and the state’s small business community appreciates the Secretary of State’s Office moving to online filings. Online filings and now amending a filing will save small business owners time and money.”
32 Powerful and Influential Alabamians to know
It’s true, the words “powerful and influential” can be vague and subjective. However, it’s fair to say among the universally accepted definitions within politics and policy is an individual’s ability to create change, start a conversation, influence the public or public officials, move an agenda forward or stop one in its tracks. There’s no doubt that a good number of people are moving Alabama forward in politics and business. Recently, Yellowhammer published its 2021 annual list of who they consider the most influential and powerful. They noted it was a “Peek behind the curtain.” That it always is – a peek into the mind of the editorial team, writers, and friends of the site. With the same people on it year after year, often in the same companies and offices and the standard members of the legislature and statewide offices. Dozens of whom certainly would belong on any list of power or influence: Jo Bonner, Katie Britt, Bob Geddie, Dax Swatek. No one can deny the influence any of them have. Others on the list begged the question “Why?” while others were glaringly missing. This list purposely does not duplicate any name already appearing on that list. Not all influencers within the public arena are lobbyists or lawmakers. Some within the media or in advocacy organizations can shape or change public opinion. In addition, some influencers have the ability to position themselves, loved ones, or friends to the front of the line for coveted appointments or jobs. There’s so much to power and influence; while it may hard to describe, you know when you see it, and you know who lacks it. It could be argued that 1-5 are no brainers and would be list repeats, but heck, I say repeat them until it changes. So with that, let Alabama Today offer 32 additional notable people who were nominated by a ragtag group of incredibly biased judges. Did I mention how incredibly biased we are? This, combined with the YH list, might give one a better view of the movers and shakers with power and influence in the state’s political world. Worth noting, some of them are the bosses, mentors, elders statesman, and wise counsel of many on the YH list, while a couple of others are up and comers. Jimmy “Yellow Fella” Rane, President/CEO at Great Southern Wood Preserving Not only is the Yellow Fella the wealthiest man in Alabama and Board of Trustee at Auburn, but there’s also no doubt he’s used his financial success to the betterment of the state, giving him great power and influence. His contributions are well documented, politically, economically, and through philanthropy. From 2013 to May 2021, his company has given 178 contributions totaling $2,079,316.40. He also has the Jimmy Rane Foundation, which has more than doubled his political donations with $4.7 million in scholarships. His influence is undeniable and unmatched, which is why he is number one on our list. Mark Crosswhite, CEO Alabama Power Crosswhite’s voice carries a lot of weight, so much so that multiple people on the YH list answer to him in one way or another. Which begs the question, how can anyone deny his place on any list of power and influence? He chaired the BCA board during a critical time when the organization’s future was in peril, saving a key organization critical to the state’s business development, growth and success, and ensuring a better economic future for the state. As the organization continues to grow and evolve, there’s no doubt he’s still helping steer the ship. 3. Fess St. John IV, Chancellor of The University of Alabama System Finis “Fess” St. John IV comes from a storied line of Alabama influencers, including his father and grandfather. He’s currently the Chancellor of The University of Alabama (UA) System. Which makes him the chief executive officer of Alabama’s largest employer with multiple school campuses and a massive healthcare system. According to the school’s website, “Total enrollment in the UA System achieved a new record this fall, with more than 70,400 students enrolled at UA, UAB, and UAH. The System’s annual economic impact surpasses $10 billion annually, and upwards of 1.7 million patients are served every year in the System’s hospitals and clinics.” 4. Chris England, House of Representatives, District 70 While many have tried over the last couple of decades, England was able to stop the further deterioration of the Democrat party (with a reputation that was nationally marred by chaos, a lack of structure, oh, and that one toilet story) and begin its rebuilding. One long-time democrat described the infrastructure as stronger now than it has been since the days of Bill Baxley. England is a graduate of Howard University and the University of Alabama School of Law. His father grew up in Circuit Court Judge John H. England Jr., who served as a justice on the Alabama Supreme Court in 1999-2000. To leave him off the Top 5 of any influential list is to deny reality. 5. Stephanie Bryan, Tribal Chair and CEO for the Poarch Creek Indians No one should question the top female on this list. It’s no coincidence that she heads one of the biggest political powerhouses in the state of Alabama. PCI has capitalized on the shift in public attitudes towards a more tolerant attitude towards gaming and lottery to push for changes in the law that would allow their tribe’s operations to grow. This session’s gaming proposal wasn’t successful, but it got further than expected and may come up again in a special session. She is a political player that many say could be the most powerful over the next couple of campaign cycles. 6. Tom Coker, The Southern Group Rare can someone survive with the longevity and respectability of Tom Coker. His strength is the state senate, but he can get things done. His firm’s website names him as President of Tom Coker & Associates since 1982. Tom Coker offers a full range of governmental
Steve Flowers: Mike Hubbard conviction finally upheld
It looks like Mike Hubbard’s day of reckoning may be coming near.
