The Association of County Commissions of Alabama (ACCA) passed a resolution last week encouraging legislators to oppose any legislative changes to the state's online sales tax law, Simplified Sellers Use Tax (SSUT) program.
The resolution was voted on and unanimously approved by county commission members who participated in ACCA's annual business session last week.
"Changing Alabama’s constitutionally-sound SSUT program would be foolish and unjustified," said ACCA executive director Sonny Brasfield. "Allocating the county portion of SSUT revenue on a population basis is the most efficient option available to our state. Alabama’s complicated sales tax system of interlocking and conflicting local jurisdictions, exemptions, definitions, and enforcement rules will not survive constitutional review. Subjecting out-of-state companies to the local complexity is a non-starter, and anyone making an objective evaluation of our system will reach the same conclusion."
The resolution released by ACCA details the program's history and highlights Alabama's compliance with the 2018 U.S. Supreme Court decision in South Dakota v. Wayfair Inc., which held that the state may collect taxes from sellers that have a "substantial nexus" in the state, even when there is no physical presence, provided that the tax does not impose an undue burden on interstate commerce. The resolution concludes with Alabama counties expressing support for the program's current structure and for protecting the critical SSUT revenue that, if eliminated, would greatly impact law enforcement, economic development, infrastructure, public safety and many other governmental services at the county level.
The City of Tuscaloosa and the Tuscaloosa City Schools filed a lawsuit against the Commissioner of the Alabama Department of Revenue on August 12 over Alabama’s online sales tax law.
“Alabama’s Simplified Sellers Use Tax takes revenue generated in our community and sends it elsewhere,” Tuscaloosa Mayor Walt Maddox said in a statement after filing the lawsuit. “For nearly a decade, we have proposed legislative changes and attempted to work with the Alabama Department of Revenue to make regulatory updates to fix SSUT. Despite our repeated efforts, our concerns remain unaddressed, leaving us no choice but to take legal action. This lawsuit is necessary to protect the revenue Tuscaloosa has earned and to safeguard our schools, first responders, and small businesses that rely on local dollars staying in the community where they were generated.”
To connect with the author of this story or to comment, email [email protected].
Don't miss out! Subscribe to our newsletter and get our top stories every weekday morning.
