Among the issues before the legislature next week will be an expected $700 million shortfall in the General Fund Budget.

On Friday, Gov. Robert Bentley unveiled his proposed solution.

The plan includes eight options that total $541 million in estimated increases in revenue. He will also propose unearmarking $187 million to solve the financial shortfall in the General Fund. The Governor’s revenue options include: Corporate Income Tax

• Require combined income reporting for corporations that do business in other states.

• Estimated increase in revenue – $20 million

Financial Institution Excise Tax

• Remove the credit that financial institutions receive for sales taxes paid

• Estimated increase in revenue – $1 million

• Insurance Premium Tax

• Remove the credit for state privilege tax paid by insurance companies

• Remove the credit for ad valorem tax paid by insurance companies

• Remove the office facilities and real property investment credits made by insurance companies

• Estimated increase in revenue – $25 million

Public Utilities License Tax

• Remove exemption that applies to municipal utilities

• Estimated increase in revenue – $47 million

Individual Income Tax

• Eliminate income tax withholding exemption certificates

• Estimated increase in revenue – $12 million

Sales Tax for Automobiles

• Increase the rate for automobile sales to 4 percent

• Estimated increase in revenue – $200 million

Rental Tax for Automobiles

• Increase the automobile rental tax to 4 percent

• Estimated increase in revenue – $31 million

Cigarette and Tobacco Tax

• Increase the tax to $1.25 per pack (increase of $0.825 per pack)

• Increase tax on other tobacco products proportionately

• Keep wholesalers’ discount the same as current

• Estimated increase in revenue – $205 million

The Governor will officially present his General Fund recommendations to the Alabama Legislature on March 4.

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