Skip to Content, Navigation, or Footer.
A spirit that is not afraid

Auburn Helps Analyze Alabama Taxes

In a new analysis of recently released U.S. Census Bureau data, Auburn University's Center for Governmental Services found Alabama's tax revenues have declined 13 percent since data was analyzed one year ago.

The nine Southeastern states averaged a 14.2 percent dive from the same quarter in 2008.

David Hill, associate director for Auburn's Center for Governmental Services, said members of the Center anticipated a decline in state revenues because of the recession that began in 2008.

"Alabamians lost jobs, spent less at the mall and even held back on recreational activities like fishing that would require purchase of a state license," Hill said.

Other states' tax revenues fell more than Alabama's. Georgia, Louisiana, South Carolina and North Carolina presented declines of 17 percent, 18 percent, 21 percent and 22 percent, respectively.

Alabama's 13 percent was more than losses by Arkansas, Mississippi, Tennessee and Florida, which lost 5 percent, 9 percent, 11 percent and 12 percent, respectively.

"Alabama's retail sales have remained relatively strong when compared with other states, but an increase in unemployment has hurt income tax revenues," Hill said.

Some of Alabama's tax revenue categories have shown increases in the past year, such as alcohol tax, tobacco tax and gasoline tax.

"These increases were too small to offset declines, especially in the income tax," Hill said.

According to the Center for Governmental Services analysis, Alabama's 2009 unemployment rate was 10.1 percent, more than double the highest unemployment rate, 4.7 percent, recorded in the same quarter of the previous year.


Share and discuss “Auburn Helps Analyze Alabama Taxes” on social media.