Retail Report: Nearly 30% tax cut possible for businesses due to proposed infusion of pandemic relief funds

After concluding the third legislative day of the 2022 regular session Tuesday, the Alabama Legislature reconvened Wednesday in a special legislative session to appropriate about $772 million in federal American Rescue Plan Act (ARPA) funds.

The appropriations bill includes up to $79.5 million to replenish the Unemployment Compensation Insurance Trust Fund, which could mean a 29% tax cut for the average employer. The legislation received committee approval Thursday and is headed for floor debate Tuesday, Jan. 25  – 1 p.m. in the House and 3:30 p.m. in the Senate. The employer tax rate schedule has dropped from Schedule D, the highest schedule possible, to Schedule C in 2022. Despite going to a lower schedule, without the extra pandemic funds, the average employer would be facing a 3% tax increase this year, state officials said. See full story in This Week in Retail News below.

Lawmakers expect to conclude the special session by Thursday, Jan. 27. The regular session will resume Tuesday, Feb. 1.

For legislative and other news of relevance to retailers,
read This Week in Retail News.


Employers could see almost 30% UC insurance tax cut under special session legislation (

Alabama’s unemployment rate remains steady at 3.1% (

Senate budget committee OKs two other tax cuts; more bills introduced to eliminate sales tax on food (

Every home eligible for four, free at-home COVID-19 tests via federal website – (

Free N95 masks to be made available at pharmacies, White House says (

Senate Tourism OKs retail wine purchases in ABC-approved containers; drive-thru or walk-up beer and wine among introductions (

Senate committee stalls bill seeking elimination of occupational tax (

Severe weather sales tax holiday poster ready for download (

Previous Alabama Retail Reports


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