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Alabama cities drop tax lawsuits, seeking legislative reform to fix unfair online sales tax system.
Several Alabama cities, including Madison, Mobile, and Montgomery, have dropped lawsuits challenging the state’s Simplified Sellers Use Tax (SSUT), opting instead to work with the Alabama legislature to reform the 8% online sales tax system.
The cities argue the current framework, unchanged since 2015, unfairly diverts revenue from local communities, harming funding for public services.
By dismissing their cases without prejudice, they preserve the right to refile if lawmakers fail to enact a fair, modernized solution by the legislative session’s end on March 27.
The shift reflects a broader move toward collaboration over litigation to address fiscal challenges tied to e-commerce.
Las ciudades de Alabama abandonan las demandas fiscales, buscando una reforma legislativa para arreglar el injusto sistema de impuestos sobre las ventas en línea.