Mayors of Alabama’s largest cities are pushing to open the state’s online sales tax program, amid worries that cities that impose high sales tax rates may be losing out on revenue.
AL.com reports mayors of the state’s 10 largest cities want state lawmakers this legislative session to mandate more data be provided about online sales taxes.
While the combined city, county and state sales tax rate in most Alabama cities is higher than 9%, the state’s Simplified Sellers Use Tax collects only 8%.
Whether traditional sales tax or online tax is collected, the state gets a 4% cut.
Mayors aren’t yet proposing a re-division. Instead they say they want figures on where purchases are coming from, so they can compare that to their current shares of online sales tax.
No bill to require more data has yet been filed.
