Tuscaloosa sues Alabama over tax revenue distribution
Tuscaloosa Government and Schools Sue Alabama Over Tax Revenue Issue
Tuscaloosa, Alabama, is embroiled in a legal battle with the state over the Simplified Sellers Use Tax (SSUT), which local officials claim is siphoning off crucial tax revenue from the community. Mayor Walt Maddox and Superintendent Dr. Mike Daria have raised alarms about the detrimental financial impact of the SSUT distribution on the city’s budget and educational resources.
The lawsuit targets Alabama Department of Revenue Commissioner Vernon Barnett, alleging that the SSUT distribution process is unconstitutional and has overstepped legislative intent. Maddox emphasizes the need for collaborative solutions, stating, “Yes, there is a problem, but let’s work together to solve it.” The lawsuit also includes plaintiffs from Mountain Brook and the Tuscaloosa City School District.
Dr. Daria articulated the significant repercussions for local schools, estimating an annual shortfall of about $5.3 million due to misallocated online sales tax revenue, which could fund approximately 12 teachers and additional educational programs. The district is currently grappling with program reductions and potential personnel cuts due to these financial constraints.
Maddox further revealed that the city faces projected losses exceeding $14 million due to SSUT, with a potential increase of up to 7% by 2026. Both officials maintain that the community’s wellbeing is at stake, urging the need for reform to ensure fair tax distribution that supports local growth and education.
Read the complete article here: https://abc3340.com/news/local/city-officials-react-to-ssut
