How Alabama Taxes Compare, 2025
Each year, PARCA uses data from the U.S. Census Bureau’s Annual Survey of State and Local Finances to compare Alabama’s tax collections with those of all 50 states. The most recent data are from fiscal year 2023.
State Tax Revenues Cool in FY 2025
Tax revenues flowing into Alabama state government returned to a more normal rate of growth in 2025, after several years of unusually high gains. Revenue flowing into both the General Fund and the Education Trust Fund grew at about the rate of inflation. A combination of unusual conditions, including historically low unemployment and an unprecedented […]
Alabama’s $60 Billion Question
Alabama relies on federal spending—Alabama residents do, too. Alabama residents receive over $60 billion from the federal government—23% of all personal income. These figures are based on a September 2024 report, The Great Transfer-mation: How American Communities Became Reliant on Income from Government, by the Economic Innovation Group (EIG). These payments, known as transfer payments, […]
How Alabama Taxes Compare, 2024
Each year, PARCA uses data from the U.S. Census Bureau’s Annual Survey of State and Local Finances to compare Alabama’s tax collections to the other 50 states. The most recent data comes from the 2022 Fiscal Year. Key Findings from this year’s report, How Alabama Taxes Compare, 2024: Alabama’s rankings in per capita state and […]
Exploring Seed Investing in Alabama
Economic development—using public funds to incentivize private economic investments—is a core government function practiced by both parties and at all levels of government. Numerous public and public-private partnerships in Alabama are tasked with some form of economic development, including the Alabama Innovation Commission. One of the Commission’s goals is to build up Alabama’s technology sector, […]
A Final Upside Surprise, Signs of Slower Growth Ahead, Alabama Tax Collections, 2024
Alabama tax revenues continue to trend toward more normal patterns after a wild post-pandemic ride. The Education Trust Fund, powered by state income and sales taxes, grew modestly, collecting 2.2% more than the previous year. Meanwhile, growth in the General Fund cooled but still posted an unusually high increase of 7%, boosted by high interest […]
Alabama Public Opinion Survey
PARCA’s most recent public opinion survey finds, once again, aversion to certain taxes, support for public education, and mistrust in state government. At the same time, the survey finds a lack of consensus on how the state should respond to other critical issues. Among the findings: PARCA’s annual public opinion survey was conducted between October […]
How Alabama Taxes Compare, 2023
Despite the wild gyrations in the economy since the outbreak of COVID-19 in the spring of 2020, the latest comparative data from the U.S. Census Bureau finds Alabama in a familiar position: at or near the bottom in state and local government tax collections. Key Findings • Alabama is a low-tax state: In FY 2021, […]
Alabama State Tax Collections, 2023
Increases, Decreases, and Trends in the Revenue Supporting State Government The 2023 fiscal year, which ended on September 30, was a mixed year for Alabama revenue collections. After several years of strong growth, Alabama tax collections turned in a mixed performance in 2023, with the General Fund (GF), which supports non-education spending, up substantially. Education […]
E-Commerce and Taxation: Questions of Efficiency and Equal Treatment
PARCA’s new report, titled E-Commerce and Taxation: Questions of Efficiency and Equal Treatment, questions whether changes are needed to the state’s Simplified Sellers Use Tax (SSUT). Executive Summary Alabama’s tax on online goods sold by out-of-state sellers, the Simplified Sellers Use Tax (SSUT), has been a boost to state budgets but a mixed blessing for […]