Albritton Wants Legislative Debate, Not Courts in SSUT Suit
The looming court battle over the way online sales taxes are distributed in Alabama has taken a new twist. Baldwin County State Senator Greg Albritton (R-District 22) is attempting to force Tuscaloosa and 16 other municipalities who are part of the suit to drop it and move debate back to the legislature. That is where he would have more control over the issue as Chairman of the Senate General Fund Committee.
The Republican lawmaker is filing legislation that could cut larger cities’ online sales tax revenue by allowing purchasers to opt out of or receive a refund on sales taxes paid to municipalities other than where they reside.
Albritton told APT Capital Journal the issue does not belong in the court system. "Here we are with lawyers involved in a legislative matter. They have brought to courts in that have nothing to do with taxation and should have nothing to do with taxation. That issue belongs in the legislature."
The battle is over significant money. The SSUT was worth a total of $851.1 million in fiscal 2024. It jumped to $963.3 million in fiscal 2025 according to the Alabama Department of Revenue. Albritton claims he is attempting to protect counties and smaller cities who could stand to lose some of that tax revenue if the courts step into the fray.
He told Alabama Daily News that the municipalities who filed the suit should, "...stop trying to steal money from us and we can come to terms.”
The powerful chairman currently has placed a hold on four state contracts as a leverage tool in the SSUT debate. None of the contracts would directly impact litigants.
The August lawsuit asks the court to revamp the online tax collection system so retailers with stores and facilities in the state remit to the state for online purchases the same state and local taxes they would for in-store purchases.
“We want sales taxes to be collected in Alabama the way they’ve always been collected, and that’s by destination sourcing,” Mayor Walt Maddox told Tuscaloosa Thread in a recent interview.
“As is evident from the recent Black Friday and Cyber Monday data, the issues of SSUT are growing exponentially,” Maddox said. “This is dangerous to the fiscal viability of cities and schools that depend upon locally generated sales taxes.”
Sonny Brasfield, Executive Director of the Association of County Commissions of Alabama is leading opposition to the lawsuit from all 67 counties. The Tuscaloosa native and Mayor Maddox have reportedly each voiced willingness to discuss the complicated matter with lawmakers.
No court date has been set as each side of the issue continues to maneuverer.
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