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Council joins county opposing proposed SSUT reallocation in resolution
Summary
Council approved resolution 25-1124-2 to enter an agreement with Escambia County opposing proposed changes to SSUT distributions by larger cities; the mayor said the city receives about $400,000 from the tax and warned distributions might be suspended if the dispute goes to court.
The city council voted to approve resolution 25-1124-2, committing the council to oppose a proposed reallocation of the state-administered SSUT distribution being pursued by larger cities. Mayor Nalton explained the resolution and said the city receives “about $400,000” annually from the SSUT, which applies to purchases delivered to residents by carriers such as the U.S. Postal Service and delivery firms.
Councilors and staff confirmed that SSUT distributions are set by the state and apportioned in part on population. Council members expressed concern that if larger jurisdictions successfully pursue a change, smaller cities could receive a reduced share; the mayor said that if the dispute goes to court the state might suspend distributions pending resolution. The mayor also noted the county commission had already taken a similar position.
A motion to approve the resolution was made and seconded; the council voted to approve it. The resolution directs the city to join the county’s opposition effort; the meeting did not include legal analysis of the lawsuit’s likely outcome or an estimate of the net fiscal effect if distributions were altered.
