The Mountain Brook City Council voted unanimously on Tuesday to join Tuscaloosa in a lawsuit challenging the State of Alabama’s current distribution of revenue collected under the Simplified Sellers Use Tax (SSUT).
The SSUT, an 8% tax on online purchases, is distributed by the State, with 50% going to state funds and the remaining 50% allocated to cities and counties based solely on population, not based on where the purchase originated.
“Our residents are already paying this tax, and yet much of it never makes it back to support the services they rely on,” said Mountain Brook Mayor Stewart Welch. “This is about fairness. Cities like Mountain Brook should receive a more equitable portion of the revenue generated by their own citizens.”
Mountain Brook officials argue that the formula shortchanges municipalities like Mountain Brook, where a high volume of online purchases are made by residents.
“We’ve watched this imbalance for years while continuing to invest in public safety, infrastructure, and quality of life. Joining this lawsuit is a necessary step to advocate for the fiscal future of our city and ensure our ability to serve the community well,” City Council president Virginia Smith said.
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