The Tax Foundation


Alabama once again ranks as one of the lowest tax states in the nation.

Kiplinger's Magazine's latest list of Most Tax Friendly States has Alabama coming in at number five which is up a position from last year.

Alabama's entry says the state moved up in the rankings because state and local property tax collections, per capita, have dropped to the lowest in the U.S., according to the Tax Foundation.

A new study ranks Alabama 19th among in the states in the amount of federal funding that goes into the state government's general revenue.

   The study by the Tax Foundation says federal funding accounts for 38.2 percent of the state government's revenue in Alabama. Mississippi ranked first at 49 percent and Alaska was 50th at 24 percent.

   Tennessee was at 44 percent, Georgia measured 41.1 percent, and Florida came in at 36.9 percent. / Tax Foundation

Alabama's seventh annual sales tax holiday for school-related items starts Friday. Items from pencils to computer equipment are exempt from the state's four percent sales tax as well as sales tax in participating counties and cities.

The holiday is expected to help businesses and customers alike but a new report says such holidays are poor tax policy. Joseph Henchman is vice president for legal and state projects for The Tax Foundation. He says when you get down to it, customers aren't really saving that much money.