Photo by Sarah Owens
Mountain Brook City Council meeting, July 14, 2025.
At Monday's meeting, the Mountain Brook City Council voted unanimously to join the city of Tuscaloosa in a lawsuit challenging the State of Alabama’s current distribution of revenue collected under the Simplified Sellers Use Tax (SSUT).
The SSUT, a flat 8% tax on online purchases, is distributed by the state with 50% going to state funds and the remaining 50% allocated to cities and counties based solely on population—not based on where the purchase originated. City leaders argue that this formula shortchanges municipalities like Mountain Brook, where a high volume of online purchases are made by residents.
“Our residents are already paying this tax, and yet much of it never makes it back to support the services they rely on,” said Mayor Stewart Welch. “This is about fairness. Cities like Mountain Brook should receive a more equitable portion of the revenue generated by their own citizens.”
Council President Virginia Smith echoed the concern: “We’ve watched this imbalance for years while continuing to invest in public safety, infrastructure, and quality of life. Joining this lawsuit is a necessary step to advocate for the fiscal future of our city and ensure our ability to serve the community well.”
By joining the lawsuit, Mountain Brook aligns with other Alabama municipalities seeking reform in how online sales tax revenue is distributed, aiming to preserve the financial stability of local governments and the services they provide.
