Alabama’s state tax revenues tumble - 13 percent versus year earlier. But, second-quarter decline is slightly below that experienced by states in region.
AUBURN (October 21, 2009) — Auburn University’s Center for Governmental Services today unveiled its analysis of newly released U.S. Census Bureau data showing that during the current recession Alabama’s tax revenues have declined slightly less than the 14.2 percent average falloff for the nine Southeastern states.
The most recent data show that Alabama’s total tax revenues in the second quarter of 2009, collected from all sources, declined by 13 percent versus the same quarter in 2008. Alabama’s falloff was greater than that of Arkansas (-5%), Mississippi (-9%), Tennessee (-11%) and Florida (-12%). Alabama’s decline in tax revenue was exceeded by those of Georgia (-17%), Louisiana (-18%), South Carolina (-21%), and North Carolina (-22%).
Looking at specific types of taxes, Auburn researchers found that declines in income tax revenues accounted for the largest share of reduced revenues in the second quarter versus a year earlier. Alabama’s unemployment rate rose to 10.1 percent during the second quarter of 2009, more than twice the highest unemployment rate, 4.7 percent, recorded in the second quarter of 2008. Falloffs in sales taxes and severance taxes from 2008 to 2009 were the next largest categories of declining revenues.
Don-Terry Veal, (334) 844-4781 (email@example.com)
David Hill, (334) 844-4867 (firstname.lastname@example.org)
Patrick Rose (334) 844-1914 (email@example.com)