Tuscaloosa Drops Dispute Over Alabama’s Uniform Sales Tax System

Cities and school districts will work with the Alabama legislature to resolve their complaints about the state’s Simplified Sales and Use Tax system, they said in an announcement that they dismissed their legal challenge filed last summer.

The cities had asked the Alabama Circuit Court for Montgomery County to invalidate portions of the system, which imposed a 8% flat rate on online sales. Tuscaloosa, which led the lawsuit, said that the uniform rate gave retailers with a physical presence in the state—including Amazon, Walmart, Target, and Kroger—a substantial savings from the city’s 10% local rate, shorting it of $14.6 million ...