GUNTERSVILLE — On Friday, the Marshall County Commission approved a resolution to intervene in a lawsuit against the Alabama Department of Revenue initiated by the City of Tuscaloosa over the state's Simplified Sellers Use Tax (SSUT).
First passed in 2015, the Simplified Sellers Use Tax Remittance Act created a program to collect taxes from online sales made by out-of-state retailers. Currently, the flat tax rate is at 8%. Of that, 50% goes to the state, 30% to municipalities, and the remaining 20% goes to county governments.
The City of Tuscaloosa, along with Tuscaloosa City Schools, filed a lawsuit on August 12 against State Revenue Commissioner Vernon Barnett, seeking "regulatory updates," including potentially increasing the flat rate to make up for money allegedly lost under the current law. The Cities of Mountain Brook and Montgomery have since joined the suit as co-plaintiffs.
To protect its "financial interests," the Marshall County Commission is one of many entities — including school boards and other municipalities — that joined the Association of County Commissions of Alabama (ACCA) in opposing Tuscaloosa's effort to change the law.
"The SSUT program has been an essential source of revenue for Marshall County, and the plaintiff's lawsuit, if successful, would jeopardize the County's ability to maintain the current level of governmental services it provides to the public," the resolution passed Friday stated.
District 2 Commissioner Rick Watson argued Friday during a special-called meeting that raising the flat rate wasn't a problem as long as the county's revenue wasn't decreased. Marshall County received $3.8 million in 2024 out of the $851,182,206.25 collected statewide in fiscal year 2024, according to the Alabama Department of Revenue.
Commission chairman John Young said the money the county receives from SSUT had already been earmarked — before the Tuscaloosa filed its suit — to help pay for the new $31 million jail addition and to cover other bond issues.
Calling it the county's "saving grace," Marshall County Attorney Clint Maze recommended that the Commission join the suit, saying he expected "at least 100" entities to sign on to the effort, including the Alabama Education Association.
"Everybody wants a seat at the table," Maze said, adding that "counties need to speak with one voice."
Maze included a conflict-of-interest waiver in the resolution, since his law firm, Wilmer & Lee P.A., has many lawyers who may represent other parties in the case.
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