Mobile pauses internet sales tax challenge to pursue faster legislative solution
Feb 11th, 2026
Posted in: Press ReleaseMayor
Mobile, Ala. — The City of Mobile has agreed to voluntarily dismiss its legal challenge to the state’s handling of the Simplified Sellers Use Tax (SSUT) to give legislators an opportunity to fix a system that threatens critical funding for Alabama cities.
In December, Mobile was one of several municipalities that joined a lawsuit filed by the City of Tuscaloosa challenging the state’s handling of SSUT. At the request of Alabama’s legislative leadership, Mobile and other cities will now voluntarily dismiss their claims to pursue a more immediate legislative solution during the 2026 Regular Session.
By dismissing its legal challenge without prejudice, the City of Mobile is engaging in good-faith negotiations with the Legislature while preserving its ability to reassert its legal rights should those discussions fail to produce a meaningful and timely resolution.
“It’s encouraging that our legislative leaders are willing to work toward an immediate solution to a system that is outdated and that has not kept up with best practices used in other states,” Mayor Spiro Cheriogotis said. “Our position has not changed, but the fastest and most responsible way to fix the current SSUT framework is in the Legislature. We are ready to work with anyone who is serious about creating a system for online sales taxes that is fair to every Alabama community.”
Established in 2015, SSUT applies a flat, statewide 8 percent tax to online sales, regardless of where the purchaser lives. At the time, the program was created to address the practical difficulty of collecting sales tax from online retailers. Since then, federal case law has evolved, and nearly every other state has modernized its system to reflect today’s marketplace. Alabama has not.
Mayor Cheriogotis views the current legislative session, which concludes March 27, as a critical opportunity to find an equitable resolution to this program. It also marks the first time his administration has been directly involved in SSUT discussions in Montgomery.