Alabama – Once Again, Big Cities Collide With Counties Over Online Sales Taxes In Alabama

The mayors of Alabama’s five largest cities and the state’s influential county commission association are again headed for a showdown over online retail taxes. The arena will be the chambers of the 2019 Legislature.

The key issue is dueling interpretations of the state’s 8 percent flat tax on online sales: the Simplified Sellers Use Tax – SSUT, for short.

The SSUT program is exploded in importance to the state Treasury. Two years ago, 166 retailers were participating, voluntarily collecting the 8 percent tax from customers. Now, more than 1,300 retailers are signed on.

And the revenues pile higher: The collections hit $80.2 million in fiscal 2018, up from $52.4 million a year earlier. The state’s fiscal year runs from Oct. 1 to Sept. 30.

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by John Sharp
April 19, 2019