Lawmakers complete another legislative week, pass bill to cut state overtime tax

Published: May. 5, 2023 at 4:35 PM CDT
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MONTGOMERY, Ala. (WSFA) - Lawmakers wrapped up another legislative week by passing a bill that allows you to keep more of your paycheck. A bill would cut the state income tax on overtime pay by 5%.

“That is such a big deal for our workers,” said Rep. Napoleon Bracy, D-Mobile County.

The estimated $45 million in tax revenues would come from the Education Trust Fund and expire after three years unless lawmakers vote to extend it.

“There are a host of other bills, some of them better than others, but they’re all going to cost money. So how are we going to afford it?” said Senator Arthur Orr, R-Limestone County.

House Democrats say this tax cut incentives people to go the extra mile.

“They can receive this benefit by keeping that 5% and taking that home while they’re making either time and a half or double time doing this over time,” said Bracy. “But it’s also a major incentive for the corporations because they’re able to meet demand meet schedule because they have qualified, trained workers.”

As the tax cut bill heads to the Senate, so does legislation to ban divisive concepts in public classrooms. Senate President Pro Tempore Greg Reed says the conversation around the bill has already started.

“I think that that is one that’s going to receive a lot of reviews, and you got senators that are going to be very intense on their support, as well as they’re being uncomfortable with that legislation,” said Reed. “But we’ll just have to see it play out.”

When lawmakers return on Tuesday, they will be on the 19th legislative day of an expected 30-day legislative session.

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