FISCAL NOTE

House Bill 162 as substituted and reported by the Committee on Ways and Means General Fund would exempt the first $6,000 of retirement income received by individuals who are 65 years of age and older from state income tax. According to the Department of Revenue, this bill would reduce income tax receipts to the Education Trust Fund by the following estimated amounts in the following tax years:

Fiscal Year	Estimated Loss to ETF
2024	$28.2 million
2025 and thereafter	$29 million

Pursuant to the provisions of the Education Trust Fund (ETF) Rolling Reserve Act contained in Section 29-9-3(b)(3), Code of Alabama 1975, the provisions of this bill will reduce the ETF fiscal year appropriation cap for fiscal year 2024 by $28.2 million.