Senator Tommy Tuberville to Speak at Summit in Tuscaloosa Monday

US Senator Tommy Tuberville will be in Tuscaloosa early next week to speak at a Summit revolving around how online sales tax is collected and distributed in Alabama.

The topic may not sound sexy, but Mayor Walt Maddox calls the Simplified Sellers Use Tax the "biggest threat" to large cities in the Yellowhammer State, including Tuscaloosa.

On Monday morning, Maddox will host 130 leaders at the Tuscaloosa Rivermarket for his second "Earn Local, Keep Local" Summit to continue his campaign for reforming SSUT.

Get our free mobile app

A refresher: Because the Internet sales tax in Alabama is only 8 cents per dollar, Maddox says it incentivizes people to shop online instead of in-store in cities like Tuscaloosa and Northport, where the sales tax is 10 percent. That hurts small businesses locally.

All online sales tax revenue is also placed in one large "pot" and distributed to Alabama counties and cities based on their population. Revenue from products or food made in Tuscaloosa, ordered online in Tuscaloosa, and delivered in Tuscaloosa then benefits more than 400 municipalities in the state.

Maddox has stated that $100 spent at a brick-and-mortar store or restaurant in Tuscaloosa generates more than $3.50 in sales tax revenue for the city. The very same order online from DoorDash or Walmart.com generates just eight cents for Tuscaloosa - all the rest is sent elsewhere.

Those losses add up, especially as online shopping only continues to surge in popularity. The mayor has said SSUT's current structure will "cost" Tuscaloosa $15 million this fiscal year.

Mayor Maddox has described the status quo as a socialist structure and has obtained permission from the city council to sue the state over it.

The Earn Local, Keep Local Summit is about just that - advocating to see online sales tax distributed with more consideration of destination sourcing.

Tuberville will deliver the keynote speech at Monday's Summit, where he is expected to emphasize the importance of robust education and economic development programs.

As the Tuscaloosa City Schools Board of Education noted when it also voted to sue the state, the current SSUT tax structure allocates zero dollars to TCS from online revenue.

For coverage from the Summit and Tuberville's visit on Monday, stay connected to the Tuscaloosa Thread.