Legislative Committee Blocks Contracts Amid Sales Tax Lawsuit
A joint legislative committee temporarily blocked four legal contracts on Thursday after a senator raised objections to a lawsuit concerning the distribution of proceeds to local governments from the state’s internet sales tax.
The Contract Review Committee placed holds on three contracts for Legislative Services and one for the Pharmacy Board. Senator Greg Albritton, R-Atmore, chair of the Alabama Senate’s General Fund committee, stated he aimed to assert the Alabama Legislature’s ultimate authority over state tax revenue distribution.
“This lawsuit, I think, didn’t need to be filed,” Albritton told reporters after the meeting. “I don’t think it should have been dropped. I believe this falls directly within the Legislature’s purview and legislative role. we don’t need to involve the judiciary, nor should we be impatient. We should work it out here.”
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While Albritton’s request currently affects only the December contracts, he did not rule out continuing to hold future contracts untill the issue is resolved.
“We’ll see how that develops,” Albritton said.
The cities of Tuscaloosa and Mountain Brook sued the Alabama Department of Revenue in august, alleging the internet sales tax, known as the Simplified Sellers Use Tax (SSUT), violates the state’s constitution. The lawsuit also claims some retailers within the program are ineligible for the alternative taxing program.
Tuscaloosa Mayor Walt Maddox released a statement on Thursday, noting that several cities have collaborated with the alabama Department of Revenue for nearly a decade to address legal issues related to the SSUT.
“Seeking a legal remedy is not an action we have taken lightly; however, our duty is to protect our citizens
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