FISCAL NOTE

House Bill 162 (Act 2022-294) as enacted exempts 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 act will reduce income tax receipts to the Education Trust Fund (ETF) 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 (ETF) Rolling Reserve Act contained in Section 29-9-3(b)(3), Code of Alabama 1975, the provisions of this act will reduce the ETF fiscal year appropriation cap for fiscal year 2024 by $28.2 million.