State data shows year-to-date Alabama tax revenues up by 2.1%
(The Center Square) — Alabama’s year-to-date tax revenues increased by 2.1% compared to the year before, according to data from the state Department of Revenue.
Data showed tax collections for the fiscal year – which ends Oct. 30 – so far were $11.51 billion, up from last year, when it was $11.27 billion.
For the month of May, collections were up slightly (0.36%), improving from $1.54 billion to nearly $1.55 billion.
One of the state’s largest sources of revenue is a 4% sales tax with a local option that has some Alabama cities with rates up to 10%. Those revenues were down in May by 1.31% compared to the same month last year, dropping from $267.5 million to $264 million. For the year to date, sales tax revenues are down nearly 4%, shrinking from $2.14 billion last year to $2.06 billion this year.
Revenue from the state’s 6.5% corporate income tax was up both compared to May 2023 and for the year to date.
The state collected $59.4 million this May compared to $48.3 million in May 2023, an increase of 23%. For the year to date, corporate income tax collections are up by nearly 13%, improving from $829.4 million during the same period last year to $936.7 million this year.
The state’s personal income tax, which ranges from 2% to 5%, also had growth in collections. This May, the state took in $887 million compared to $882 million last year, an increase of 0.55%. For the year to date, personal income tax revenues are up 0.75%, increasing from $4.73 billion to $4.77 billion.
Collections for the state’s 29 cents per gallon gasoline tax were also up, both compared to May 2023 and for the year to date.
The state took in $62 million in gas tax for May compared to $58.4 million in May 2023, a gain of 6.2%. For the year to date, gas tax revenues grew by 3.84% as collections increased from $454.9 million last year to $472.4 million this year.
