1st Step in Resolving SSUT Debate Goes to Senate Committee
The Alabama Legislature's Senate Finance and Taxation General Fund Committee will take up a bill tomorrow that is being called a first step toward hopefully resolving the split between large cities with counties and smaller cities over the way online sales taxes are distributed.
Tuscaloosa, Hoover and Tuscaloosa City Schools had led other large cities and systems into cancelling a lawsuit against the state over the Simplified Sellers Use Tax (SSUT). Half of the SSUT's 8% online sales tax revenue goes to the state, 30% to cities and 20% to counties, based on population. The plaintiffs claim the majority of online purchases are made in their cities and the current distribution formula shortchanges them.
At the end of Thursday's session, Baldwin County State Senator Greg Albritton took to the senate floor to inform lawmakers that a committee comprised of all sides in the disagreement had approved his filing of Senate Bill 347. If passed and signed by Gov. Ivey, the bill would allow gathering of population data for online sale tax calculations from the U.S. Census every five years beginning in 2027, instead of every 10 years from the census.
"Senator Albritton's bill is a positive step forward and reflects progress toward a constructive partnership on this issue," Tuscaloosa Mayor Walt Maddox stated Thursday.
The Alabama County Commissions Association opposed the lawsuit, but Executive Director Sonny Brasfield told the Alabama Daily News (ADN), the association, in principle, does not oppose using more frequent census date for tax allocations.
"However, we are still analyzing the legislation’s impact at the local level. Each county and city is going to view this proposal through the prism of its individual revenue stream because SSUT is vital to local services all over the state,” Brasfield told ADN.
Albritton told the senate he wants to move the legislation forward as quickly as possible, but he is not sure where other lawmakers stand on the issue.
Tuesday's committee meeting will include debate on Ivey's proposed $3.9 billion General Fund Budget so its not clear if that will impact debate on the SSUT bill.
The committee meets at 12:30 tomorrow afternoon at the statehouse.
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