Heated legal battle over controversial Alabama tax halted as cities, schools pause lawsuit

The Alabama cities and school systems suing the state over the way internet sales taxes are assessed and allocated are voluntarily dismissing their legal challenge while a legislative fix is negotiated in Montgomery.

The dismissal was filed Wednesday by the plaintiffs involved in a lawsuit against the Alabama Department of Revenue challenging the legality of the state’s 8% flat tax on online sales.

The dismissal is “without prejudice,” meaning the governmental entities preserve their ability to reconsider the court case if legislative discussions fail to produce a resolution…

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