Wetumpka’s City Council voted to authorize the city to intervene as a defendant in litigation challenging Alabama’s simplified sellers’ use tax statute.

A staff member told the council that the cities of Tuscaloosa and Mountain Brook had sued the Alabama Department of Revenue in Montgomery County, seeking different tax treatment for online sales. The staff member said the simplified sellers’ use tax was intended to make tax collection easier and that Wetumpka has relied on revenue collected under that statute when budgeting.

“If the simplified seller use tax statute was struck down … we’re not really convinced that it would be best for the city of Wetumpka,” the staff member said, arguing the city would risk losing a steady revenue stream for a relatively small potential gain. The staff member said counties and county associations are funding counsel and that the city could join the defense at no direct cost while monitoring the case.

Councilors moved and seconded the resolution, and the measure passed by voice vote.

Why it matters: the statute affects how statewide collections of online-sales taxes are distributed to cities and counties; a change could alter Wetumpka’s share. City staff described the choice as protecting a known revenue source rather than risking uncertain gains if the statute is overturned.

The council did not specify any changes to the city’s budget as part of the vote; staff said the action is largely to protect current distributions and would require only monitoring by city attorneys.