A new point of contention is emerging over the state’s internet sales tax system. While multiple cities in the state have filed lawsuits claiming Alabama’s eight-year-old Simplified Sellers Use Tax — which levies state sales tax on online purchases through the state — is unconstitutional, the Association of County Commissions of Alabama issued a call to action to protect the system at their summer conference last week.

SSUT places a flat 8% tax on online purchases made in any of Alabama’s 67 counties. SSUT differs from the sales tax that’s levied in brick-and-mortar stores, which varies by municipality and county. SSUT brings in an estimated $850 million in annual revenue for the state, counties and municipalities.

Additionally, the distribution formulas are different for SSUT; with 4% of the tax going to the state, 1.6% of the tax going to the county and 2.4% going to the municipalities across the state. Under the traditional sales tax, 4% of the tax still goes to the state, but the remaining amount is allocated at the municipalities’ and counties’ discretion. 

Some Alabama city leaders are claiming that the SSUT system is unconstitutional because they claim it leads to substantial revenue losses in the state’s largest municipalities. On Aug. 12, the city of Tuscaloosa, the Tuscaloosa City School District and the city of Mountain Brook filed a lawsuit seeking to change the system. 

The city of Tuscaloosa claims that it is projected to lose $14.6 million in local tax revenues at the hands of SSUT — a number calculated by taking the difference from the amount of revenue the city receives under SSUT versus the amount of revenue the city would receive is online sales tax was applied at the local sales tax rate.

However, state and county leaders have raised concerns that if SSUT is removed, online sales tax will become more patchwork and complicated throughout the state — tampering with a vital stream of revenue in the state as online shopping becomes increasingly more common.

“We are the most complicated state in the country where sales tax collection and enforcement is concerned,” ACCA executive director Sonny Brasfield warned at last week’s conference. “The 67 counties cannot survive this (if SSUT is removed). Most of the cities cannot survive it.”

Alabama top stories in brief

State DEI programs under renewed criticism after White House voices concerns

• Gov. Kay Ivey’s office says they are working with the Trump administration to review state diversity, equity and inclusion programs under the governor’s authority.
• White House officials recently met with a group of Alabama state lawmakers, where they are said to have raised concern over an Office of Minority Affairs within the governor’s office and language within Alabama Department of Public Health documents, according to state Sen. Chris Elliott, R-Josephine.
• It is unclear what ADPH actions or language the Trump administration is criticizing.
• “Alabama has done good work, but we are not done yet,” Ivey spokesperson Gina Maiola said of the state’s efforts to censure state-funded DEI programs to comply with Trump’s anti-DEI executive order issued earlier this year.

Federal judge issues ruling against Alabama voting district map

• A federal judge ruled on Friday against Alabama’s current state Senate district map, saying that it violates Section 2 of the Voting Rights Act of 1965 by engaging in racial discrimination.
• U.S. District Judge Anna Manasco said in her ruling the state Legislature must draw a new Black-majority voting district in the Montgomery area.
• If the court’s decision is upheld, it would be the second time in four years a federal court has found the state’s 2021 congressional and state legislative voting district maps to be racially discriminatory. 
• It is still unclear whether state officials plan to appeal this ruling.

Six protesters arrested as demonstrations against Homewood police shooting continue

• Six people were arrested Friday on charges of disorderly conduct as protests continue in Homewood following the police shooting of Jabari Peoples nearly two months ago. 
• The protestors were arrested in downtown Homewood for disorderly conduct and obstructing traffic. The Homewood Police Department also said that three of the protestors arrested were armed with handguns and were charged with possessing a firearm while participating in a demonstration. 
• All six protestors have been released on bail.
• Homewood police also said they towed a vehicle that was being used to obstruct traffic in tandem with the protests.
• The police department is also linking a fire set inside of a Homewood Walmart to the protests. No one was injured in this fire, and the police say they are reviewing video footage of the incident to try and identify a suspect.

Alabama Muslim advocacy group urging hate crime probe into threats against city council candidate

• The Alabama Council on American-Islamic Relations is urging state and federal law enforcement to investigate threats against Hoover City Council candidate Tanveer Patel as hate crimes. 
• Patel has received an onslaught of Facebook comments during her campaign that have included death threats, slurs and other hateful speech.
• The Hoover Police Department has opened an investigation into these incidents and the FBI has been informed, though will not confirm if they have opened an investigation.
• “No one should be targeted for their faith or identity when seeking public office. We urge state and federal law enforcement to investigate these threats as hate-motivated crimes and to ensure the safety and dignity of the candidate and the broader community,” CAIR-Alabama representative Britton O’Shields said in a statement.

Our articles you might have missed:

• There are more than 400 species of birds scattered across Alabama. In the latest edition of The Longleaf Hiker, Hannah Irvin writes about the different types of birds that can be found in Alabama and her personal experiences working with them as an environmental educator.

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