Tuscaloosa is gearing up to sue the State of Alabama over how internet sales tax revenue is distributed, as Mayor Walt Maddox wages war on a system he says is depriving the city of more than $10 million each year.
At issue is the complicated Simplified Sellers’ Use Tax, a decade-old state law that took effect in 2016 and charges 8 cents on the dollar for purchases made online.
To oversimplify the matter, that revenue is then divided in half. Four cents go to the state, where a penny is allocated to the education trust fund, and 3 cents are added to the general fund…