Hoover Police Chief Challenges Online Sales Tax Distribution
Nick Deltzis, Hoover’s police chief and a candidate for mayor, is urging city officials to engage in a lawsuit concerning Alabama’s online sales tax revenue distribution through the Simplified Seller Use Tax (SSUT) program.
He has described the current tax system as detrimental to Hoover residents, highlighting concerns over unfair practices in tax allocations. Recently, Mountain Brook joined Tuscaloosa in opposing this system.
“Hoover residents shop online at a tax rate that generates significant sales tax revenues,” Deltzis stated on Wednesday. “However, funds that could support our roads, parks, schools, and first responders are being redirected to other cities statewide, which is simply unacceptable.”
The SSUT imposes an 8% tax on most online purchases, but the distribution of these funds is based on population rather than the location of the purchase.
Relatedly, Mountain Brook is participating in the legal challenge over the state’s distribution of online tax revenue, with advocates calling for fairness.
Deltzis pointed out that as a result of the system, cities like Hoover, Tuscaloosa, and Mountain Brook are losing out on millions that would otherwise come through traditional sales tax frameworks.
“It’s time to move beyond discussions and take action,” he emphasized. “Tuscaloosa and Mountain Brook are finally standing up for fairness. Hoover should join us in this fight.”
He criticized the current local administration for inaction, promising that “as mayor, I will advocate for the financial interests of Hoover residents.”
“Our tax revenues should benefit those who contribute them. Hoover boasts the busiest retail corridor in Alabama and serves as a local economic powerhouse. Online shopping by our residents should translate into tax revenues that stay in our community. This isn’t just fair; it’s necessary.”
According to Deltzis, the SSUT led to over $850 million in revenue across the state in 2024. Yet, cities like Hoover, with their physical storefronts and local delivery networks, capture only a fraction of what traditional sales tax systems would provide.
