At a special-called meeting on Monday, the Decatur City Council voted in favor of a resolution supporting a statewide lawsuit seeking changes to Alabama's simplified sellers' use tax (SSUT).
The SSUT is an 8% tax applied to eligible sellers, such as online retailers. Currently, 50% of SSUT revenue is allocated to the state, with the remaining half being used to supplement municipalities (30%) and counties (20%) across Alabama. The lawsuit claims the SSUT in its current form fails to handle online and in-person sales equally.
Decatur City Council president Kyle Pike fully endorsed the resolution, arguing that the tax is unfair to residents of the River City and its surrounding areas.
"I would just say I'll absolutely support this. This resolution has a significant impact on the city of Decatur and our residents," Pike said. "I don't believe the current implementation of the SSUT is fair to our residents, and that is what we're elected to do, is to represent our constituents and do what's in the city's best interest."
Pike addressed the yearly financial impact of the SSUT on Decatur.
"It's around $7 million annually right now, and I would expect by the end of this term, it'd be substantially more. That will impact not just the fun stuff that residents like to see, but will affect our police department and our fire department," continued Pike. "There are other critical services to our community and the schools throughout the state."
"I support what the lawsuit says. I think it really comes down to the simple fact that we, as cities, would like to see the Alabama Department of Revenue enforce the definition of eligible seller and marketplace facilitator. So with that, I'll support this flatly," added Pike.
Decatur Mayor Kent Lawrence issued a statement regarding the SSUT.
"The Simplified Sellers Use Tax is not being handled in a way that treats cities fairly," said Lawrence. "The distribution is uneven, shortchanging communities like ours. I support efforts to correct this process. The lawsuit filed by other Alabama cities aims to fix how SSUT dollars are administered and allocated. If the City Council chooses to adopt a resolution of support, I am fully on board."
"Our goal is fair treatment, clear rules, and a stronger future for Decatur," Lawrence added.
Despite passing the resolution, the council did not hold a vote on joining the lawsuit against the Alabama Department of Revenue, which has now been signed onto by multiple cities across Alabama, including nearby Madison.
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