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Rep. England files bill to increase online sales tax from 8% to 9.5% – Yellowhammer News

Rep. England files bill to increase online sales tax from 8% to 9.5% – Yellowhammer News

State Rep. Christopher England (D-Tuscaloosa) has pre-filed legislation for the 2024 state legislative session to raise Alabama’s online sales taxes to generate additional funding for public education in the state.HB17 proposes to raise the tax rate Alabamians pay on online purchases from 8%to 9.25%.The online sales tax, known as the simplified sellers-use tax (SSUT), is currently put mostly toward Alabama’s general fund budget. England’s bill would allocate the increase to the education trust fund (ETF).If passed by the Legislature and signed by Governor Ivey, according to England’s bill, the balance of the amounts collected would be distributed as follows:“Fifty percent to the State Treasury and allocated 75 percent to the State General Fund and 25 percent to the Education Trust Fund. Twenty-five percent to each county in the state on a prorated basis according to population as determined in the most recent federal census prior to the distribution. Twenty-five percent of funds to be distributed to each municipality in the state on a prorated basis according to population as determined in the most recent federal census prior to the distribution.” At one time, no sales tax was collected on online sales. Eventually, individual states passed online sales taxes to recoup revenues… 

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