MONTGOMERY, Ala. (WIAT) — State leaders hinted at how much you could be getting in tax rebates this year– if the legislation passes.
Considering the state’s strong financial position, legislative leaders say tax rebates are likely this upcoming session. Senate Education Budget Chairman Arthur Orr says lawmakers are looking at around $500 million in rebates.
“We believe after we take care of state government, at least on the education side, we have enough to send back to the people of Alabama who sent it to us in the first place,” Orr (R- Decatur) said.
The state currently has more than $2 billion in budget surpluses. Orr says individuals could receive $200 to $250, or double that for married couples filing jointly.
There are still questions about who would get the rebate and exactly how much it would be, but Orr says that will all be debated.
“With the economy and with inflation, they’re struggling. So this would be a small manner of relief to them. We would expect to try to get the checks out third quarter of sometime this year,” Orr said.
However, not everyone is on board with spending the money in that way. Senate Minority Leader Bobby Singleton (D- Greensboro) says Medicaid expansion would have a larger impact.
“So I think that is something that’s more substantial than doing a tax rebate. I think the citizens will get more out of the expansion of Medicaid than a one-time check to spend,” Singleton said.
In the House, new Speaker Nathaniel Ledbetter thinks there will be a push for one-time checks.
“I think we got to be very cautious about what we do. But I think at this point in time, I think members would support that. And with inflation running away like it is it certainly gives them an opportunity to help offset that a bit,” Ledbetter (R- Rainsville) said.
So far, no legislation has been posted to the legislature’s website under the “prefiled bills” section, but lawmakers say that is expected to change soon.
This was the second and final day of the organizational session, but lawmakers will be back in March for the regular session.