Alabama Taxes

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Through two-thirds of the fiscal year, state government's tax collections are running 10-point-five percent ahead of the same period last year. Sales taxes and income taxes, which are two key indicators of Alabama's economy, are both up.

The state Revenue Department reported Thursday that Alabama collected $5.18 billion in taxes from October through May. That's up from $4.69 billion in the same eight-month period a year earlier.

While the numbers look good, Finance Director Jim Main cautions against too much optimism. He says the state came out of the recession last summer. That means the post-recession figures for 2005 are still being compared to recessionary numbers from 2004. He says the real test of Alabama's tax collections will come when post-recession figures from last summer can be compared against this summer's tax collections.