The City of Tuscaloosa plans to sue the State over how Alabama’s online sales tax law is divided up between counties and municipalities.
According to the Tuscaloosa Thread, Mayor Walt Maddox estimates that Tuscaloosa will lose $14.6 million in the current fiscal year due to the structure of the online Simplified Sellers Use Tax, which was passed into law by the legislature in 2015.
At the request of Maddox, the Tuscaloosa City Council on Tuesday voted to authorize City attorney Scott Holmes to file a lawsuit against "the Alabama Department of Revenue, the Commissioner of the Alabama Department of Revenue, the State of Alabama, and any other necessary parties," over how they distribute online sales tax revenue, according to the outlet.
“It is common sense - Tuscaloosa should keep what it earns, and our small businesses should have the same advantages as out-of-state corporations. This is why we intend to file a lawsuit to address the long-standing concerns of Alabama’s Simplified Sellers Use Tax," Maddox said in a statement to the Tuscaloosa Thread. "If common sense prevails, our small businesses win, which will only strengthen our schools, public safety and infrastructure. This is not a step we take lightly, but feel is necessary to ensure that Tuscaloosa’s schools, community and small businesses are treated the same as corporations in California, New York and other states.”
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