Mobile moves to join lawsuit challenging state’s handling of internet sales tax
The City of Mobile is joining a lawsuit against the Alabama Department of Revenue over the state's handling of internet sales tax.Summary
The City of Mobile has joined a lawsuit filed by the City of Tuscaloosa against the Alabama Department of Revenue (ADOR) concerning the Simplified Sellers Use Tax (SSUT). Established in 2015, SSUT collects an 8 percent tax on online sales statewide, regardless of the purchase location, which disproportionately affects rural Alabamians and reduces revenues for cities like Mobile that rely on sales taxes. The city argues that SSUT diverts local tax dollars to other communities and allows large online retailers to avoid collecting state and local sales taxes. Mobile estimates losing $34 million annually due to SSUT. The lawsuit challenges ADOR’s practice of allowing companies with a physical presence in Alabama to participate in the program, designed for out-of-state sellers. Despite the lawsuit, Mobile officials remain committed to working with the state legislature to find a solution that protects local tax dollars and ensures fair treatment for all Alabama communities.
(Source：Headtopics)