Hoover votes to join Tuscaloosa-led lawsuit over state sales and use tax distribution

Hoover City Council voted to opt into litigation initiated by the city of Tuscaloosa to challenge how the state distributes sales and use tax revenue, a case officials said could recover millions for the city.

City Attorney explained the resolution would allow Hoover to "opt into this litigation" brought by Tuscaloosa against the state and, if successful, permit Hoover to collect the same taxes and benefit from the additional income. Mayor (speaking during the discussion) said that, "with this SSUT tax, the city of Hoover is losing anywhere between 7 and $10,000,000 a year." Councilors framed the move as a dispute over distribution rather than a new tax on residents; one council member emphasized, "this is not an additional tax incurred by the citizens of Hoover... It's taxes it's a distribution of taxes already collected by the state."

Supporters said the litigation is a matter of fairness and could restore revenue the city has lost under current state allocations. The city attorney named other Alabama municipalities that have joined the effort, including Tuscaloosa and Mountain Brook, characterizing the effort as solidarity among similarly sized cities.

Opponents did not mount a recorded roll-call opposition during the meeting. Council moved, seconded and approved the resolution to join the litigation.

The resolution passed at the meeting; council discussion indicated the next steps will be administrative participation in the existing Tuscaloosa suit. The city did not provide a detailed timetable for potential recovery or costs of participation at the meeting.