Tuscaloosa Drops SSUT Lawsuit, Seeks Fix

The City of Tuscaloosa is hitting pause on its legal fight with the state over how Simplified Sellers Use Tax, also known as SSUT, is being handled.

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City leaders have voluntarily dismissed their lawsuit in what they’re calling a good faith move to work directly with the Alabama Legislature on a long term solution. The dismissal was filed without prejudice, meaning Tuscaloosa keeps the right to refile the case if ongoing discussions do not lead to a fair and comprehensive fix.

Back in August, the City of Tuscaloosa challenged the state’s handling of SSUT, arguing that the current system does not properly return tax dollars to the communities where the sales actually happen. After the lawsuit was filed, other municipalities and school systems across Alabama joined in, signaling broader concerns about how those funds are distributed.

“Each day, we work hard making our schools strong and our neighborhoods safer,” said Mayor Walt Maddox in a press release from the City of Tuscaloosa. “For nearly a decade, we have been working to find common sense solutions to the outdated SSUT system. This decision reflects our commitment to protect the State’s general fund and modernize our sales tax code to destination sourcing.”

For now, the courtroom battle is on hold. The focus shifts to the negotiating table, where Tuscaloosa leaders say they’re ready to push for changes that better serve local communities.