Exhibit Albritton Declaration, State of West Virginia et al. v. U.S. Department of the Treasury, No. 7:21-cv-00465 (N.D. Ala.), Doc. 75-2 (July 29, 2021)

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Declaration of Senator Greg Albritton, Doc. 75-2 in State of West Virginia et al. v. United States Department of the Treasury, Civil Action No. 7:21-465-LSC (N.D. Ala.), filed July 29, 2021. The declarant identifies as the State Senator for District No. 22 in the Alabama Senate and Chair of the Finance and Taxation General Fund Committee. The declaration states that the Tax Mandate (42 U.S.C. § 802(c)(2)) leaves unclear which tax bills would be treated as offsetting a reduction in net tax revenue with federal funds, and that this uncertainty delayed consideration of S.B. 379. It is made under 28 U.S.C. § 1746.

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Case 7:21-cv-00465-LSC Document 75-2 Filed 07/29/21 Page 1 of 3 FILED

2021 Jul-29 PM 05:09
U.S. DISTRICT COURT
N.D. OF ALABAMA

UNITED STATES DISTRICT COURT FOR THE
NORTHERN DISTRICT OF ALABAMA
WESTERN DIVISION

THE STATE OF WEST VIRGINIA, et al.,

Plaintiffs,

CIVIL ACTION NO. 7:21-465-LSC

UNITED STATES DEPARTMENT OF THE
TREASURY, et al.,

Defendants.

DECLARATION OF SENATOR GREG ALBRITTON
My name is Greg Albritton. I am the State Senator representing District No. 22 in the

Alabama Senate. I am over the age of 19, and the facts I have set out below are based upon my
personal knowledge.

1. Iam the State Senator representing District No. 22 in the Alabama Senate, which includes
parts of Baldwin, Escambia, Monroe, Clarke, Washington, Conecuh, Mobile, and Choctaw
Counties. I was elected in 2014 and again in 2018. I currently serve as the Chair of the
Finance and Taxation General Fund Committee. I am familiar with the workings of the
Alabama Legislature and the Finance and Taxation General Fund Committee.

2. The Alabama Legislature, like legislatures in many States, must authorize a State budget
where expenditures shall not exceed estimated revenues and resources—i.e., a balanced
budget.

3. When considering legislation, it is important that any legislator consider the fiscal effects

of proposed bills.
Case 7:21-cv-00465-LSC Document 75-2 Filed 07/29/21 Page 2 of 3

4. Based on the text of the American Rescue Plan Act and, in particular, the Tax Mandate (42
U.S.C. § 802(c)(2)), it is unclear what sorts of tax bills would constitute a use of federal
funds to directly or indirectly offset a reduction in net tax revenue. For example, a State
could provide a new tax credit or delay the imposition of a tax to help businesses or
individuals respond to the economic effects of the COVID-19 pandemic. It is my
understanding that, based on a plausible reading of the Tax Mandate, the United States
Department of the Treasury could try to recoup from Alabama whatever amount of money
the State did not collect as a result of such a tax credit or delayed collection of a tax. In that
scenario, the State would effectively lose the money twice: once from the loss of revenue
that followed the cut in taxes, and once from the Treasury Department clawing back federal
funds.

5. It is difficult, if not impossible, for a legislature to comply with statutory budgeting
requirements without understanding the fiscal effects of the bills it passes. When
considering legislation, legislators must consider a bill’s prospective effect on the State’s
future revenue. To effectively craft a balanced budget, a legislature needs to know if a bill
would—or would not—result in the Treasury Department clawing back funds from the
State and effectively lowering the State’s revenue.

6. Moreover, unexpectedly having funds clawed back by the Treasury Department would
likely materially affect a legislature’s ability to pursue its preferred policy goals.

7. If the Tax Mandate does extend so broadly as to effectively restrict a State’s ability to
reduce any tax or reduce net tax revenue for the fiscal year, I am significantly constrained
in my ability to effectively represent the will of my constituents. My constituents generally

oppose tax hikes and generally favor lower taxes and limited government. Some of those
Case 7:21-cv-00465-LSC Document 75-2 Filed 07/29/21 Page 3of3

constituents may blame me for maintaining current tax rates, which will be difficult to
change based on the anti-tax-cut policy mandated by the federal government.

8. These concerns have already hindered the Alabama Legislature’s ability to act and delayed
the passage of beneficial legislation. For example, $.B. 379 was a proposed bill that would
exempt federal tax credits and restaurant revitalization grants from state taxation and
provide filing deadline extensions for certain taxpayers. All twelve members of the Finance
and Tax Committee voted for its approval, but the Legislature postponed considering S.B.
379 because of uncertainty surrounding what laws we can pass without prompting a
recoupment action by the Department of Treasury. Although we wanted to pass the bill this
year, doing so would come with risks to the State if we acted without knowing the bill’s
fiscal effects. Even if we can pass some version of S.B. 379 later this year (the Governor
would have to call a special session), Alabama taxpayers and businesses will not know how
much in tax payments to withhold until we do so. Alabama taxpayers will be harmed as a

result.

Pursuant to 28 U.S.C. § 1746, I declare under penalty of perjury that the foregoing is true

and correct. Executed on July dT: 2021. SL , , Z :

Greg Albritton
Alabama Senator
Chair, Finance and Taxation General Fund Committee


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