Department of Revenue’s recent data, the Alabama tax revenue has decreased by 1.3% in comparison to October 2022.
Alabama tax revenue (Photo: Alabama.gov)
Alabama Tax Revenue Slightly Down by 1.3% in October Compared to the Year Prior
According to the Cleburne Times-Review, the Department of Revenue stated that the Alabama tax revenue such as personal income, sales, and corporate income taxes – all took a dip compared to October 2022.
The state of Alabama saw a decrease in tax revenue for the month of October. Specifically, personal income tax revenue decreased by 6.19%, going from $310 million to $291 million this year. Additionally, the state’s sales tax revenue decreased by 7.65%, going from $77.8 million to $71.3 million.
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Alabama Tax Revenue: Simplified Sellers Use Tax Program Broke Alabama’s Negative Revenue
According to The Center Square, the one that broke the negativity of Alabama tax revenue was the Simplified Sellers Use Tax Program. It enables the collection of an 8% flat use tax on out-of-state sales, bypassing heavier local levies such as those in Mobile and Birmingham. From October 2022 to January 2023, collections increased by 15.27%, rising from $53 million to $61.9 million.
Another outlier was Alabama’s 4% use tax which was slightly up by 2.28% compared with October 2022. Alabama tax revenue, which is levied on out-of-state purchases, had its revenues grow from $52.3 million to $53.5 million.
