Summary
Tuscaloosa and other Alabama cities have dropped their lawsuit over how the state divvies up Internet sales tax money. That means the fight over how much online shopping revenue lands in city budgets is over for now—and the current rules stay in place.
At a glance
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Impact analysis
Ending the suit saves legal costs but likely leaves city budgets with whatever share of online sales tax they get under current state rules—no court-ordered boost.
The state and online sellers get certainty that the current tax setup stays put, and cities get a clearer budget picture.
Cities that were counting on a bigger cut of online sales tax revenue may lose out.
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