HENRY COUNTY: Henry County officials are stepping into the legal fight surrounding how Alabama distributes online sales tax revenue, becoming the latest county to join a growing lawsuit over the state’s Simplified Seller’s Use Tax program.
The SSUT system — which applies the same 8% tax rate to purchases made from out-of-state or remote retailers and delivered within Alabama — shares a portion of that revenue with local governments. However, several larger cities, including Tuscaloosa, argue that the formula shortchanges major metro areas and are pushing for a revised structure.
County Commission Chairman Ray Marler said that any major change to the existing system could create significant financial strain on rural communities that rely heavily on those dollars.
“We’ve already allocated some of this funding toward capital projects that are underway or soon to come,” Marler said. “Counties like ours need to stand united because a single voice is much stronger statewide. Maintaining this revenue stream is essential.”
Henry County joins neighboring Dale and Houston counties in supporting the legal effort, signaling strong local government concern about the potential impact of any shift in the tax distribution model.
