It looks like Alabama cities like Tuscaloosa and Mobile may be getting a larger share of state internet sales taxes. Mayors Walt Maddox and Spiro Cheriogatis are among the city leaders who are dropping a class action lawsuit against the Alabama Department of Revenue has been dropped. The suit, brought by the City of Tuscaloosa and other municipalities, claimed the eight-percent Simplified Sellers Use Tax, caused them to lose millions of dollars in online sales tax revenue. Mayor Walt Maddox announced he and the other plaintiffs would drop the lawsuit, and instead work with members of the Alabama legislature to find a solution to the dilemma.
Maddox and Cheriogatis helped lead the charge over trying to get bigger share of the sales tax Alabama charges for buying things on the internet. The fee is called the Simplified Sellers Use Tax. It reportedly earned eight hundred and fifty million dollars every year. Half of the money goes to the state and the rest is split up between Alabama cities and counties. Tuscaloosa Mayor Walt Maddox complained that’s not enough. He claimed the Druid City generated fifteen million dollars in internet sales that were distributed elsewhere. Maddox sued and the judge in the case has ordered mediation. Mobile Mayor Spiro Cheriogatis signed onto the action, saying Alabama’s Port City wants a bigger cut as well.
