POLITICS

Alabama Cities Sue Over Online Sales Tax Distribution

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Sources: 6

60-Second Summary

MOBILE, Ala. Several Alabama cities have joined a legal challenge this week seeking to change the state's distribution of the Simplified Sellers Use Tax (SSUT), arguing online sales revenue is not allocated equitably. Counties and Association of County Commissions of Alabama intervened to defend existing system. Municipal councils from Madison, Prichard and Mobile voted to join the suit, while all 67 counties and hundreds of municipalities have filed briefs supporting current allocations. Plaintiffs filed the case in Montgomery Circuit Court in August; courts will now consider competing statutory and constitutional claims. Based on 6 articles reviewed and supporting research.

About this summary

This 60-second summary was prepared by the JQJO editorial team after reviewing 5 original reports from WHNT.com, WKRG News 5, WPMI, FOX10 News and https://www.wsfa.com.

Timeline of Events

2015: Alabama establishes SSUT to tax online sales for participating retailers.
August 2025: Tuscaloosa, Mountain Brook and Tuscaloosa city schools file suit in Montgomery Circuit Court.
Late 2025: Counties and ACCA mobilize to defend the current SSUT allocation system.
Early December 2025: Multiple cities (Madison, Prichard, Mobile) vote to join plaintiffs before intervention deadline.
Deadline passes: All 67 counties and numerous municipalities have filed to defend or intervene in the case.

Media Bias

Articles Published:: 6
Right Leaning:: 0
Left Leaning:: 0
Neutral:: 6

Who Benefited

If plaintiffs prevail, municipalities that joined the lawsuit could receive larger shares of SSUT revenue, increasing funds available for local public safety, infrastructure, and municipal services; counties and entities currently receiving allocations could see reduced distributions.

Who Impacted

Counties and county-funded services that currently receive SSUT allocations could face reduced revenue shares if courts order reallocation; businesses may experience changed collection or remittance responsibilities under any altered implementation.

Expert Opinion

After reading and researching latest news.... The dispute centers on SSUT distribution and legal interpretation; plaintiff cities seek reallocation of online-sales revenue, while county associations defend current statutory allocations; the Montgomery Circuit Court will determine whether state implementation complies with statutes and constitutional requirements and quantify fiscal impacts on services.

Media Bias