Geneva County votes to intervene in SSUT lawsuit to protect county revenue

Geneva County on Nov. 24 adopted a resolution authorizing the county to join other Alabama counties in intervening as a defendant in litigation challenging the Simplified Sellers Use Tax (SSUT).

County Attorney W. Phil Eldridge told commissioners that the Alabama Association of County Commissioners (ACCA) coordinated the effort and had prepared the resolution. "This will not require any financial outlay from the County," Eldridge said, and he urged the commission to act to protect revenue streams the county relies on. Eldridge told the board the ACCA was "instrumental in drafting the SSUT law" and expressed concern that a successful challenge could jeopardize the statute's constitutionality.

Commissioner Bart Wilks moved to adopt the ACCA resolution and Commissioner Todd Brannon seconded. The resolution passed on a 3-0 vote. The resolution directs Geneva County to take necessary actions to intervene in the lawsuit filed by the City of Tuscaloosa in Montgomery County and to protect county interests.

Why it matters: the SSUT program is a statewide remittance mechanism for use taxes; county officials said it is an important revenue source. The resolution and accompanying legal documents were added to the record and will allow the county to participate in any coordinated defense with ACCA and other counties. The commission did not authorize any direct county expenditure for litigation at the meeting.

What happens next: the county's attorney will file the appropriate motion to intervene in the Montgomery County case and coordinate with ACCA and counsel representing other counties.