A few more stats relating to Alabama.

GDP growth (Q1 2023): 0.10%

Unemployment rate (May 2023): is at a record low of 2.20% - What’s not stated is the job participation rate for 18–60-year-olds sits at 52%.

Top corporate tax rate: 6.50%

Top individual income tax rate: 5%

Gasoline tax: 49.71 cents/gallon

During the last legislative session, there were several bills passed and signed by Governor Ivey that may assist in improving the Alabama’s business rankings over the next few years.

House Bill 77 cuts down on the paperwork and frequency that small businesses use when they pay their business taxes.

The Legislative passed a one-time rebate, $150 for individuals and $300 for couples.

A reduction in the grocery tax was passed. The bill will cut the state tax on most groceries from 4% to 3%, with another potential 1% reduction possible if the Education Trust Fund budget grows.

HB217, the overtime income tax reduction bill passed. This bill will exempt overtime pay from the state income tax.

However, SB65, which would have reduced the occupational tax in numerous cities across the state, did not pass.  

Even though the Legislative body approved the highest Educational Trust Fund in history, little was done to improve the level of education. Bill, HB7, which would have banned divisive language (CRT), failed to make it to floor for a vote. Neither did a bill that would have addressed Diversity, Equity and Inclusion that is present in the Alabama Collegiate system.

Addressing the problems that Common Core has caused in the educational system in Alabama, were not discussed.

However, they did pass legislation that would change the terminology of what a “failing” school means to one falling in the “lowest 6%”, how that improves the education in any particular school, is a question that needs to be asked.

So, will any of the changes made or not made improve the business environment here in Alabama? Guess we wait and see in next year’s rankings.