STATE OF ALABAMA

Office of the Governor


BOB RILEY
Governor
 

Press Office

May 01, 2008

Governor Riley Offers Compromise Tax Relief Package

· Cut sales taxes on groceries
· Cut income taxes for the middle class
· Expand access to affordable health insurance
· Change the law to establish 4-year property reappraisals

Attached is a summary of the compromise tax relief proposal Governor Riley offered to Republican and Democratic legislators on Tuesday. The Governor has held several meetings with legislative leaders from both sides of the aisle to try to work out a compromise on an overall tax relief plan that would cut the state sales tax on groceries while preserving the federal income tax deduction for over 98% of taxpayers. The Governor’s compromise plan also would raise the income tax threshold from $12,500 to $15,500 for a family of four, provide tax breaks to small business owners and employees to make health insurance more affordable, and give the people the chance to vote on a Constitutional amendment to establish four-year property appraisals. This compromise plan is revenue neutral, meaning it will have no impact on the FY 09 budget.

Governor Riley has continued to have discussions with Republicans and Democrats and is working to get this compromise considered by the Legislature.

Click here to view the summary.