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City staff warns online-sales tax shift has cost Decatur millions
Summary
A staff presentation to the Decatur City Council outlined how Alabama's remote seller sales allocation (SSUT) has reduced the city's sales-tax share and estimated multi-million-dollar local revenue losses since 2016.
City staff told the Decatur City Council that Alabama's remote sales allocation under the Streamlined Sales and Use Tax (SSUT) program has sharply reduced the portion of sales tax retained by Decatur, costing the city millions of dollars since 2016.
Kyle, a city staff member who briefed the council, said the local share of tax revenue from a hypothetical $100 purchase differs when the sale happens with a local seller versus an SSUT-participating remote seller. "Assume you have a $100 purchase here in Decatur," Kyle said. "The consumer…
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