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Proposed bill would raise Alabama online sales tax, distribute new revenue to schools – Alabama Reflector

Proposed bill would raise Alabama online sales tax, distribute new revenue to schools – Alabama Reflector

An Alabama representative has prefiled a bill that would increase the state’s online sales tax and distribute the increase to public schools.HB 17, sponsored by Rep. Chris England, D-Tuscaloosa, would increase the levy, officially known as the simplified sellers-use tax (SSUT), from 8% to 9.25%. The added money would be allocated to local boards of education based on their average daily membership in the preceding school year.“What I wanted to do is take that nine and a quarter – and since education isn’t getting anything really from the SSUT – that it would take that additional new money and distribute it to school systems on a per pupil basis,” he said in a phone interview. GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX Proceeds from the SSUT are currently split between state and local governments. 75% of the state allocation goes to the General Fund, with the remainder going to the Education Trust Fund. England said it would be a consistent source of money. Revenues from the SSUT have grown significantly with the expansion of online shopping in the last several years and have helped stabilize the General Fund budget. Bricks vs. clicksThe proposed increase could also add to an ongoing debate over… 

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