Section I: All taxes now in existence in the State of Alabama, including county and city taxes, will be repealed on the last day of this fiscal year.
Section II: Only one tax for the purpose of funding the Government’s business will be collected. That tax will be an income tax collected in the following manner:
a. One flat rate income tax of 4.6% shall be instituted on the first day of this new fiscal year for all who earn income from any source in the State of Alabama, regardless of residency, without deductions. The taxes will be deducted from the wages on all income over $200 a week and paid to the State Treasury by all employers and self-employed in the State of Alabama on the first day of each month.
b. One flat rate income tax of 4.6% shall be instituted on the first day of this new fiscal year for the city or county of employment of each wage earner from all forms of income in the state of Alabama without deductions. The taxes will be deducted from wages on all income over $200 a week and paid to the State Treasury by all employers and self-employed in the state of Alabama on the first day of each month. The State Treasurer shall send a check back to each city and county governments for the amount paid less 1% of the total collected for handling charges on the 15th day of each month.
c. One flat rate income tax of 4.6% shall be instituted on the first day of this fiscal year for the city or county of residence of each wage earner on all forms of income in the State of Alabama without deductions. Those who live outside the State of Alabama will be exempt from this tax. The taxes will be deducted from wages on all income over $200 a week and paid to the State Treasury by all employers and self-employed in the State of Alabama on the first day of each month. The State Treasurer shall send a check back to each city and county governments for the amount paid less 1% of the total collected for handling charges on the 15th day of each month.
d. Forms will be provided by the State for the employers and self-employed, which may be copied, to show city or county of both residence and employment of each employee with Social Security Number for identification of each person.
e. No new taxes may be instituted in the State of Alabama nor shall the rate of taxation ever be changed.
f. No fees shall be charged for any services provided by the State except to cover cost of filing, such as ownership of property, marriage and divorce documents, birth records, court documents, and one-time permanent driver’s license and car tag. No profit can be made from these services.
g. The State will establish its responsibilities concerning the expenditure of tax dollars within its income. The counties, cities, and towns will then establish their responsibilities concerning the expenditure of their tax dollars within their incomes. All else will be left up to the individual or non-governmental organizations.
h. No inheritance taxes will be collected by the State.