Don't Tax Federal Tax Rebate Checks

MONTGOMERY, Ala. (AP) - Leaders of the Senate Democratic Caucus
endorsed legislation today that would keep state income taxes from
being levied on the federal tax rebates that Alabamians are
anticipating in May. The legislation's sponsor, state Senator
Parker Griffith, says he wants to make sure every dime of the
rebate goes into the pockets of Alabama families.
The caucus leaders also announced their support for legislation
that would create a tax deduction for families that participate in
Alabama's two college savings plans. The legislation by state
Senator Zeb Little would allow a state income tax deduction of up
to $5,000 per year for contributions to Alabama's prepaid college
tuition plan and the state's 529 college savings plan.
Caucus leaders also called for legislation restricting state
contracts that aren't bid and they pushed a resolution encouraging
the governor to end annual property tax reappraisals.

(Copyright 2008 by The Associated Press. All Rights Reserved.)