Fact Check: Is Bentley's claim that Alabama ranks 50th in taxes accurate?

CULLMAN, Ala — Monday in Cullman, Governor Robert Bentley continued his tour around the state campaigning for his proposed $541 million tax increase, making the claim to the Cullman Area Chamber of Commerce that Alabama is currently ranked 50th in taxes and that his tax hike would only bump the state to 49th.

“People say we need to be cutting taxes,” the governor said. “I don’t know where you’re going to do it. We’re already 50th. Where else are you going to go? 51st? I guess you can be behind Guam, and they’re not even a state.”

After reading what the governor said, Yellowhammer decided to look into it for ourselves.

According to the non-partisan, non-profit Tax Foundation, here’s how Alabama stacks up against other states for various taxes (remember, No. 50 is the lowest, while No. 1 is the highest):

– State/Local tax burdens: 8.3% Ranked #41
– State Business Tax Climate index: Ranked #28
– State Tax Collections Per Capita: $1,920 Ranked #43
– State Revenue* Per Capita: $4,716 Ranked #39
– State and Local Tax Collections Per Capita: $2,956 Ranked #50
– State and Local Revenue* Per Capita: $7,032 Ranked #43
– State Individual Income Tax Collections Per Capita: $664 Ranked #36
– State Corporate Income Tax Collections Per Capita: $76 Ranked #41
– State and Local Sales Tax Rate (average): 8.91% Ranked #3
– State and Local General Sales Tax Collections Per Capita: $863 Ranked #31
– State Gasoline Tax Rates: $0.2087 per gallon Ranked #40
– State Cigarette Excise Tax Rates: $0.425 Ranked #46
– State Spirits (liquor) Excise Tax Rates: $18.22 Ranked #4
– State Wine Excise Tax Rates: $1.70 Ranked #5
– State Beer Excise Tax Rates: $1.05 Ranked #3
– State and Local Cell Phone Tax Rates: 9.28% Ranked #27
– State and Local Excise Tax Collections Per Capita: $551 Ranked #20
– Property Taxes Paid as a Percentage of Owner-Occupied Housing Value: 0.43% Ranked #49
– State and Local Property Tax Collections Per Capita $531 Ranked #50
*This amount includes fees as well as federal revenue.

As you can see, the only places Alabama ranks 50th are State and Local Tax Collections Per Capita and State and Local Property Tax Collections Per Capita. The state is only No. 28 in business friendliness, and has some of the highest rates of taxation in the country on liquor, beer, and wine.

The two rankings where Alabama is No. 50 will not be affected by the governor’s proposed tax increase, as they are chiefly driven by local taxes, and all of his proposals would only increase state taxes.

Our conclusion: When it comes to state tax collection — the area Gov. Bentley’s proposals would impact — Alabama is ranked 43rd, not 50th. Furthermore, “revenue per capita,” which includes fees — effectively a tax by another name — also ranks Alabama 43rd. So while the Governor can say Alabama ranks 50th in taxes and point to the per capita tax collections statistic above, it is not an accurate reflection of the full impact state government revenue measures have on the people of Alabama. In other words, in the same way he skirts his “No New Tax” campaign pledge by just raising existing taxes, he can tout the statistic, even though it doesn’t tell the full story.

Yellowhammer reached out to Governor Bentley’s office for clarification on what ranking they were referring to, but as of press time had not yet received a reply.

(Editor’s note: This article has been updated for increased clarity.)