Dothan, Ala. (WDNews) — A growing stream of online sales tax revenue is helping support local schools across Houston County, according to remarks from Brandon Shoupe.
Shoupe explained the funding comes through Alabama’s Simplified Seller’s Use Tax, or SSUT, which is collected on internet purchases. He said the system is designed to capture revenue from online sales and distribute it across state and local levels.
According to Shoupe, for every $1 spent online, 50 cents goes to the state. Of that portion, 12.5 cents is directed to the Education Trust Fund, while 37.5 cents goes into the state’s General Fund.
The remaining revenue is distributed locally. Shoupe said 30 cents of every dollar goes to municipalities through the state, while 20 cents is allocated to counties based on population.
In Houston County, those funds are already making an impact. Shoupe said local leaders voted to allocate $4.1 million from SSUT revenue to both the Houston County School System and Dothan City Schools.
Looking ahead, Shoupe noted the funding structure will continue to benefit education as collections increase. He said as the overall revenue “pot” grows, half of the funds will go to Houston County Schools, with the other half returning to the Houston County Commission.
Shoupe said the distribution model ensures that as online shopping continues to rise, both local governments and school systems will see long-term benefits.
