Alabama’s National Guard Tax Break Could Impact Education
Two important entities in Alabama are the center of controversy in the Alabama Legislature. House Bill 341, co-sponsored by Pickens/Tuscaloosa counties Rep. Ron Bolton (R-21) would exempt the first $5,000 earned from drill pay by a member of the Alabama National Guard from state income tax.
Senators noted the Guard deserves all the breaks they can get for their citizen soldier role, but opponents of the bill say it 'robs from Peter to pay Paul'. The tax break would translate to lost revenue for to Education Trust Fund to the amount of $4 million.
A sunset amendment was added to the bill that would end the tax break after the 2029 calendar year. But opponents point out there will eventually be great pressure to extended it when that deadline approaches.
While total guard compensation is based on rank and time-in-service, the average annual pay for an Army National Guard member in Alabama is approximately $36,206 a year ($17.41/hour) as of last month, with monthly pay for part-time service roughly around $2,046.
Democrat members of the committee include Senate Minority Leader, Greensboro Sen. Bobby Singleton (D-24). They have voiced support for the guard but also are concerned about the revenue that would be lost by education at a time of uncertain future budgets.
“I know it feels good to do that for the National Guard but it don’t feel good to take money out of these kids’ pockets for reading and everything else,” Jefferson County Sen. Rodger Smitherman (D-18) told the committee.
The bill passed on a party line vote and now goes to the full senate for floor debate, which come as early as today.
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