The Simplified Sellers Use Tax: A Growing Problem for Alabama
Mayors across Alabama are facing mounting financial challenges due to SSUT. Get the facts and solutions here.
About SSUT
The Simplified Sellers Use Tax (SSUT) poses a significant financial threat to Alabama communities by diverting hundreds of millions of locally generated tax dollars away from essential public services each year. Without reform, SSUT will dramatically undermine funding for education, public safety, infrastructure, economic development and more. This state law disproportionately benefits large out-of-state corporations like Amazon at the expense of local businesses. As e-commerce grows, particularly among younger demographics, Alabama communities face mounting fiscal challenges that jeopardize critical services.
The Door Dash Loophole: A Bad Deal for Alabama
The issue is worsened by the “Door Dash loophole,” which categorizes delivery services—including those facilitating purchases from local grocery stores—under SSUT, pulling even more local sales tax revenue into the state’s budget.
Destination Sourcing: Fair for Taxpayers, Fair for Alabama
Through destination sourcing, online sales tax is collected based on where you live. This change to Alabama’s outdated system protects Alabama’s small businesses, and ensures our communities get the resources they deserve.
Destination sourcing wouldn’t just benefit some — it’s a win for ALL Alabama. It creates a tax system that’s fair, sustainable and makes our communities stronger.
Addressing SSUT is essential to ensuring the long-term financial health and sustainability of our communities. For more information, please see the resources below.
Resources for Alabama’s Leaders
E-Commerce and Taxation: Questions of Efficiency and Equal Treatment
Please contact Carly Standridge if you would like resources specific to your community.
- Carly Standridge
- CFO, City of Tuscaloosa
- cstandridge@tuscaloosa.com
- 205-248-5094
