Alabama Cities Sue Over Online Sales Tax Distribution
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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.
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Timeline
- 1. 2015: Alabama establishes SSUT to tax online sales for participating retailers.
- 2. August 2025: Tuscaloosa, Mountain Brook and Tuscaloosa city schools file suit in Montgomery Circuit Court.
- 3. Late 2025: Counties and ACCA mobilize to defend the current SSUT allocation system.
- 4. Early December 2025: Multiple cities (Madison, Prichard, Mobile) vote to join plaintiffs before intervention deadline.
- 5. Deadline passes: All 67 counties and numerous municipalities have filed to defend or intervene in the case.
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