Sales taxes revenue, from both for in-store and Internet retailers, are up 6 percent over the first six months of 2020 when compared to the same period last year.
The figures from the Alabama Department of Revenue reflect not only deep declines in revenue during March and April, due to the coronavirus pandemic, but significant gains in May and June.
Overall, revenue in Alabama is up almost 4 percent through the first half 2020, as the Alabama economy continues to snap back from the pandemic.
The Alabama Retail Association said the figures show that the state’s retailers and restaurants “are leading our state’s recovery.”
“They continue to put people back to work, pivot to make their businesses safe for their customers and employees and innovate to serve customers however those customers prefer,” President Rick Brown said.
According to state figures, sales tax collections were up almost 12 percent in June over last year, and up 1.61 percent for the first half of 2020. June sales tax collections showed the first double-digit growth over the same month in the previous year since April 2019. However, that number comes with an asterisk, as the state did allow some smaller retailers and restaurants to wait as late as June 1 to remit sales taxes without a penalty.
The Simplified Sellers Use Tax, which covers Internet sales, took in almost $37 million in June, meaning it grew 94.83 percent over what was collected a year ago. The jump reflects continued strong online commerce, which was evident during the lockdown in March and April. The SSUT was up 5.94 percent over 2019 levels from January through June.
“We urge Alabamians to shop local, whether you shop in store or online,” Brown said. “When you shop local, your money remains in your community, it turns over numerous times and it keeps local businesses open and contributing to their communities.”
Still, there are other revenue categories where the effects of the pandemic can be seen. Lodging taxes are down 16.44 percent over the first six months from 2019, reflected diminished travel nationwide.