US EditionAn Alabama City Is Suing State over How It Collects Internet Sales Taxes
4 Articles
4 Articles
July 3, 2025 – Alabama – Agencies. The city of Tuscaloosa plans to sue the state because of the way Internet sales taxes are collected. The dispute involves Mayor Walt Maddox and other mayors of Alabama, who claim that the current state formula removes potential revenue from cities and unfairly distributes it to state municipalities. On Tuesday, the City Council voted to authorize legal action against the Alabama Revenue Department, the Revenue …
Alabama Live
Dothan EagleAn Alabama city is suing state over how it collects Internet sales taxes
The City Council authorized filing legal action on Tuesday.
Tuscaloosa City Council votes to sue state over sales tax distribution
The Tuscaloosa City Council voted unanimously Tuesday to sue the state of Alabama over how it distributes sales tax collected from online purchases. The lawsuit challenges the state’s Simplified Sellers Use Tax (SSUT) system, a law passed in 2016 that aims to make it easier for online retailers to collect and pay taxes. But city officials argue the system is quietly draining tens of millions of dollars from Tuscaloosa’s budget and hurting local …
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