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State cautioned: SSUT litigation, SNAP error-rate changes could cost Alabama hundreds of millions
Summary
Fiscal staff told lawmakers the simplified sellers use tax and new SNAP administrative cost rules pose material fiscal risk—SSUT is roughly an $854 million stream and SNAP administrative liabilities could increase by about $40 million annually, depending on error rates.
During the fiscal briefing, presenters called attention to two programmatic risks that could materially affect state and local finances.
Kirk Fulford of the Legislative Fiscal Office said the simplified sellers use tax (SSUT) — the tax collection mechanism that channels remote sales taxes — currently represents roughly $854 million in revenue. "What's at risk is a total revenue stream of $854,000,000," Fulford…
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