In the first month of Alabama’s fiscal year, the state’s tax revenues are down slightly by 1.3% compared to October 2022.
According to the state Department of Revenue, the state’s major sources of revenue – the personal income, the state’s 4% sales and the corporate income taxes – all took a dip compared to the year before.
Revenue from the state’s personal income tax in October decreased 6.19%, shrinking from $310 million to $291 million this year.
The state’s sales tax revenues shrunk by 7.65%, going from $268 million to $248 million.
Corporate income tax was down by 8.41%, shrinking from $77.8 million to $71.3 million.
One of the biggest drops was from the state’s 68-cent per cigarette pack tax, which had a fall of 21.96% compared to October 2022. Those revenues were down from $11.8 million to $9.2 million.
One tax that broke the state’s negative revenue trend was the Simplified Sellers Use Tax Program, which allows collection of a flat 8% use tax on out-of-state sales and avoids heavier local levies such as Mobile and Birmingham (10% combined state and local sales tax rates). Those collections were up 15.27%, going from $53 million in October 2022 to $61.9 million.
Another outlier was the state’s 4% use tax, which was up slightly (2.28%) compared with October 2022. The tax, which is levied on out-of-state purchases, had its revenues grow from $52.3 million to $53.5 million.
Gasoline tax revenues were down only 0.58%, staying in the $58 million range.
Republished with the permission of The Center Square.
