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Alabama sees another strong year of growth in tax collections

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Alabama saw another year of strong growth in tax revenues in the last fiscal year, according to the state’s financial reports

The economy produced another year of growing tax collections for the state’s General Fund and the Education Trust Fund (ETF), the two main accounts that provide state funding for government operations. 

Strong growth in income and solid sales tax growth fueled another year of growth in the Education Trust Fund. The income and solid sales taxes supply over 90 percent of the state’s education budget. In 2019, income tax collections made up 63 percent of ETF deposits, while sales taxes contributed 28 percent. 

According to the state’s financial reports for the fiscal year that ended on Sept. 30, the taxes and revenues that feed the General Fund were up 8 percent from 2018. Revenue to the ETF increased by 7 percent over the previous year, showing that the General Fund’s rate of growth exceeded the ETF’s. Historically, the ETF, which contains major growth taxes like the income and sales taxes, grows faster than the General Fund.

Income taxes, which serve as the largest source of school funding, were up $340 million, or 8 percent,  from last year for a total of $4.5 billion. Sales tax collections rose 6 percent to $2 billion, contributing an additional $105 million to the ETF. 

Revenues from insurance premium taxes are the largest contributor to the General Fund, providing $385 million or 18 percent of total collections. Those taxes, which are applied to the premiums paid by insurance policyholders, grew 10 percent over 2018 and added $35 million into the General Fund.

General Fund revenue increased by $155,837,199.45 to a total of $2,151,954,704, while ETF collections rose by $461,710,824 to $7,215,276,202.89. Collections in both funds exceeded projections.

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Jessa Reid Bolling is a reporter at the Alabama Political Reporter and graduate of The University of Alabama with a B.A. in journalism and political science.



The budget includes a 4 percent raise for teachers and lump-sum bonuses for retirees.


The money would come from the Education trust Fund, which currently has a $700 million surplus.


We just need more people to tout the good things Alabama has to offer.


VA officials said they felt compelled to offer the services for the first time to protect their beneficiaries and employees.