City News

The City of Tuscaloosa and the Tuscaloosa City Schools filed a lawsuit against the Commissioner of the Alabama Department of Revenue on Tuesday, August 12, 2025.

The basis for the suit is the unlawful actions by the Revenue Commissioner allowing companies with a physical presence in the state of Alabama to participate in the Simplified Sellers Use Tax Program (SSUT). 

“Alabama’s Simplified Sellers Use Tax takes revenue generated in our community and sends it elsewhere,” Tuscaloosa Mayor Walt Maddox said. “For nearly a decade, we have proposed legislative changes and attempted to work with the Alabama Department of Revenue to make regulatory updates to fix SSUT. Despite our repeated efforts, our concerns remain unaddressed, leaving us no choice but to take legal action.”

SSUT was created by the State of Alabama as an alternative, voluntary tax apparatus for entities with no physical presence in the state. Any SSUT program participant who chooses to collect and remit SSUT is exempt from collecting traditional state or local sales taxes.

"When online sales taxes paid by our community are sent elsewhere, our schools lose the very resources that help them excel," said Mike Daria, superintendent of the Tuscaloosa City Schools. "Local dollars should stay local—supporting our educators, strengthening our classrooms, and ensuring our schools continue to make strong progress for our children."

Mayor Walt Maddox added, “This lawsuit is necessary to protect the revenue Tuscaloosa has earned and to safeguard our schools, first responders, and small businesses that rely on local dollars staying in the community where they were generated.”