The Mayor of Alabama’s Big 10 issued a statement on Monday emphasizing the urgent need to reform Alabama’s “faulty Internet Sales Tax System” after a meeting in Tuscaloosa. This gathering included the mayor and city officials from numerous municipalities across the state.

One of the main topics of discussion was the simplified sellers use tax (SSUT). Local government leaders and educators voiced concerns about how the current tax collection system for online sales is heavily straining urban budgets, schools, first responders, and infrastructure resources.

“Today’s meetings with local governments from across the state have reinforced the growing agreement that we must tackle the inequitable online sales tax structure in Alabama,” stated the Mayor of Alabama Big 10. “The existing framework poses significant challenges for local governments, schools, and small businesses. This matter needs to be resolved, either through the courts or legislative sessions.”

Local sales taxes are crucial for city budgets, funding vital public services like schools, law enforcement, fire departments, street maintenance, and waste collection. Unlike in-person purchases, online sales often face a lower tax rate than local store sales.

“This means that local businesses are frequently undercut by out-of-state online retailers, many of which do not operate in Alabama. Furthermore, the current online tax transfer method means that tax revenues intended for local communities are redirected elsewhere by the state agency in Montgomery,” the mayor added. “For many in Alabama, shopping locally is less economical due to these tax discrepancies. In essence, this unequal taxation benefits larger out-of-state companies like Amazon and Walmart to the detriment of small and medium-sized businesses that form the backbone of our communities.”

The Big 10 mayors represent ten major cities in Alabama and are committed to seeking constructive solutions to the state’s most pressing issues. This coalition includes mayors from cities such as Auburn, Birmingham, Decatur, Dothan, and Mobile, among others.