Mobile’s new mayor, Spiro Cheriogotis, hasn’t wasted time finding his footing.
Barely a week into the job, he’s already stepped into one of Alabama’s most complicated debates — the state’s online sales tax.
It’s an issue that shaped the later years of former Mayor Sandy Stimpson’s administration and still stirs strong opinions in city halls across the state.
Cheriogotis says he’s hopeful that lawmakers will revisit the Simplified Sellers Use Tax, or SSUT, the program that governs online sales.
He’s also considering joining a lawsuit led by the City of Tuscaloosa that challenges how the state handles the revenue.
“Our cities will crumble under the lack of funding through SSUT if it’s not addressed,” he told reporters. Strong words, and they echo the tone set by Stimpson before him.
The Tax at the Center of It All
Here’s how the SSUT works: Alabama charges a flat 8% tax on most online sales.
The system was designed for simplicity back in 2016, when e-commerce was exploding and states were scrambling to catch up.
It’s since become a national example of efficiency, but critics say that simplicity comes at a cost.
Under the current setup, 4% of each purchase goes to the state’s General Fund, 1.6% to counties, and 2.4% to cities — divided among 463 municipalities based on population.
That means large cities like Mobile, Birmingham, and Huntsville, where most of those online sales actually happen, receive only a small portion of the money.
It’s a system that once made sense for a digital frontier but now feels lopsided as online shopping outpaces traditional retail.
Mayors Join Forces for Reform
Cheriogotis isn’t alone in raising alarms. He’s part of the Big 10 Mayors Association, a coalition of leaders from Alabama’s largest cities.
Hoover’s new mayor, Nick Derzis, is also weighing legal action.
“Due to SSUT, the city is losing millions in revenue,” Derzis said, adding that he’s asked his city attorney to review Tuscaloosa’s lawsuit.
For mayors leading fast-growing cities, the argument is simple. When residents shop online, their local governments lose vital funding for public safety, infrastructure, and schools.
That’s why cities from Mobile to Madison are pushing for what they call a fairer formula — one that reflects where sales are actually happening, not just where people live.
Pushback from the Counties
Sonny Brasfield, executive director of the Association of County Commissions of Alabama, has long defended the current system.
He says any changes could “throw the program into chaos” and endanger a revenue stream that brought in $850 million last year.
In his view, SSUT is a model law, fully compliant with the U.S. Supreme Court’s 2018 Wayfair decision that gave states the authority to tax online sellers.
Brasfield argues that cities already have the tools to collect more revenue through audits of local businesses.
“Constantly beating the drum for dangerous changes,” he said recently, “puts essential revenue at risk for everyone.”
It’s a clear line in the sand, and one that sets the stage for an ongoing standoff between counties and the state’s biggest cities.
What Comes Next
For now, the courtroom may decide what the legislature will not.
Tuscaloosa, Mountain Brook, and Tuscaloosa City Schools have already filed their lawsuit against the Alabama Department of Revenue, claiming the SSUT is unconstitutional.
Cheriogotis says he’s watching that case closely.
He’s also joining mayors across Alabama in calling for a fix to what they call the “DoorDash loophole,” where delivery services pay the lower SSUT rate instead of the standard local tax.
Reform won’t come overnight. But a coalition of new mayors stepping into the debate adds fresh energy to an old fight.
For a state where online shopping shows no signs of slowing, that energy might finally bring the issue off the back burner — and into a full-on policy conversation at the State House.
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