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Mobile sues Alabama over 8% online sales tax, citing $34M annual loss in local revenue.
The City of Mobile has joined a lawsuit against Alabama’s Department of Revenue over the state’s Simplified Sellers Use Tax, a 2015-2016-era 8% online sales tax that redistributes revenue from Mobile residents to other areas, costing the city an estimated $34 million annually.
Mobile officials argue the system undermines local funding for public safety, infrastructure, and schools, especially as online sales grow.
The legal challenge, originally filed by Tuscaloosa, is now expected to include around a dozen cities, with Mobile and Hoover citing significant revenue losses.
County leaders oppose the suit, calling the tax an efficient revenue source, while city leaders continue pushing for legislative reform despite past setbacks.
Mobile demanda a Alabama por un 8% de impuesto a las ventas online, citando una pérdida anual de $34 millones en ingresos locales.