GUEST COLUMN: A Letter from Mobile Mayor Sandy Stimpson

*This is an opinion column submitted to Patch by Tuscaloosa Mayor Walt Maddox on behalf of Mobile Mayor Sandy Stimpson*

NOTE FROM TUSCALOOSA MAYOR WALT MADDOX: For more than two decades, I’ve had the privilege of serving the people of Tuscaloosa, and in that time, I’ve learned that the strength of Alabama’s cities lies in our ability to adapt, innovate, and advocate for the future our citizens deserve. Few issues highlight this more than the Simplified Sellers Use Tax (SSUT). As local leaders, we see firsthand how this flawed system is undermining our ability to provide essential services, recruit jobs, and invest in quality of life. That is why I am honored to share the perspective of my friend and colleague, Mayor Sandy Stimpson of Mobile, who has been a steadfast partner in calling for fairness and common sense in how online sales taxes are distributed across our state.

MOBILE, AL — My name is Sandy Stimpson and for the last 12 years I’ve had the privilege of serving as the mayor of my hometown, Mobile. In November, I will finish out my last of three terms, and as I’ve prepared to retire over the last year, one of the questions I’ve been asked most is: "Where do you see Mobile headed?"

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Generally, my answer is very positive. From economic development to major infrastructure investments and quality of life improvements, Mobile is in a great place and gaining momentum every day. But to sustain that momentum, city leaders must have the necessary resources to continue investing in the things that have propelled our community forward. That is why I believe the current distribution model for Alabama’s Simplified Sellers Use Tax (SSUT) is the biggest threat facing our city and the entire state.

The SSUT is a statewide eight percent tax collected on online sales. These taxes are collected by the state at this flat rate regardless of where the purchase is made — meaning the tax is often higher for Alabamians in rural areas and lower in many cities that depend on sales taxes to operate.

Let me tell you why this matters to Mobile. In just the past year, the City of Mobile has lost an estimated $34 million because of the SSUT’s flawed distribution model. Those were dollars spent by Mobilians for goods and services received here in the City of Mobile, but instead of staying local, they were dispersed across the state. Had that $34 million been collected, it would represent a 16% increase in our total sales tax revenue.

In a city like Mobile, those dollars really matter. An additional $34 million would fully fund our sanitation and parks and recreation departments. The money lost to SSUT in a single year could also rebuild six fire stations, fund additional positions for the Mobile Police Department, or pay for the construction of a much-needed animal services facility. This impacts more than city services, though. A routine loss of revenue also stunts economic development by making it harder to incentivize the kind of projects that bring high-paying jobs to Mobile.

Proponents of maintaining the current broken system will tell you that cities are making money from SSUT, and they’re not wrong. Mobile collected $15 million from SSUT in 2024, but that is a fraction of what would have come to the city had the same sales been conducted at brick-and-mortar stores. Over the last two years, we have seen Mobile’s number of business licenses increase, but despite that, we are seeing sales tax revenues stagnate. Next year, we’re projecting flat revenues. There are many factors that could be driving these trends, but I have no doubt SSUT is one of them.

Everyone reading this knows how their own shopping habits have changed over the past 10 years. Like you and I, Alabamians are turning to online retailers more and more. It isn’t hard to see how this problem can quickly compound for cities that depend on sales taxes to provide critical services. The current SSUT model is also widening the gap between online retailers and the mom-and-pop stores that have been invested in our communities for years. They are already competing against convenience, an infinite supply, and the crushing economics of scale that online giants like Amazon can achieve. On top of all that, online stores can undercut their prices even further by selling goods at a lower tax rate.

For all SSUT’s complexities, the reforms cities like Tuscaloosa and Mobile are seeking are quite simple. We believe residents in every Alabama community should pay the same sales tax rate whether they buy goods online or in person and believe in a level playing field between local retailers and online mega companies. Finally, we believe that taxes should stay where goods are purchased, instead of being diverted to other communities and to help pad the state legislature’s budget. Simply put, dollars spent in your community, should stay in your community.

For cities, that would mean securing revenue that is needed to keep citizens safe and provide services. For rural communities, it would mean ending routine overtaxing for online purchases. And for Alabama as a whole, it would mean a fair and common-sense tax policy set by individual communities. This would support local needs and end a system that allows Goat Hill to pick winners and losers across the state.

In closing, I want to thank Mayor Maddox for giving me this platform and for all that he is doing to lead the state and the Alabama Big 10 on this issue. Because of his determination, we are having this critical conversation today before the impacts of SSUT do irreversible damage to cities across the Yellowhammer State.

God bless Mobile, and God Bless the State of Alabama.

Sandy Stimpson has served as mayor of Mobile since 2013. A Republican, he is the city’s 108th mayor and was reelected in 2017 and 2021. The thoughts and views expressed in this guest column are his and do not necessarily reflect the views and opinions of Tuscaloosa Patch or our parent company.