Alabama Constitution Section 219 Estate taxes
Alabama Constitution – Section 219: Estate Taxes
Text of Section 219:
"The legislature may levy and collect for state purposes, a tax on the estates of decedents, leaving property within the state, or any part of such property, not exceeding in value the limitations now or hereafter prescribed by the laws of the United States, the amount of such tax to be fixed in proportion to the value of the estate and at such rates as the legislature may establish."
Explanation:
Section 219 gives the Alabama Legislature the constitutional authority to:
Impose estate taxes on property left by a deceased person (a "decedent") within Alabama.
Tax only up to the limits set by federal law (i.e., U.S. Congress's restrictions or exemptions on estate taxation).
Set tax rates and structure the tax based on the value of the estate.
Key Points:
The estate tax is a state-level tax and is separate from the federal estate tax.
It only applies to property within Alabama.
The tax cannot exceed the limits allowed under federal law.
The legislature controls the rate and application of this tax.
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