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Alabama Democrats Don't Want Rebate Taxed

By Associated Press

Montgomery, AL – Leaders of the Senate Democratic Caucus endorsed legislation Monday that would keep state income taxes from being levied on the federal tax rebates that Alabamians are anticipating in May.

The legislation's sponsor, state Senator Parker Griffith, says he wants to make sure every dime of the rebate goes into the pockets of Alabama families.

The caucus leaders also announced their support for legislation that would create a tax deduction for families that participate in Alabama's two college savings plans. The legislation by state Senator Zeb Little would allow a state income tax deduction of up to $5,000 per year for contributions to Alabama's prepaid college tuition plan and the state's 529 college savings plan.

Caucus leaders also called for legislation restricting state contracts that aren't bid and they pushed a resolution encouraging the governor to end annual property tax reappraisals.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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