GUEST COLUMN | Mayor Walt Maddox: 'Door Dash Loophole' And Dark Walmarts (Part 1)

*The following is a guest editorial written by Tuscaloosa Mayor Walt Maddox*

TUSCALOOSA, AL — As John Adams once said, “Facts are stubborn things.” And the facts about Alabama’s Simplified Sellers Use Tax (SSUT) are clear: SSUT is undermining the principle of physical nexus, eroding the revenue streams that are generated by businesses that call our towns, cities and counties home.

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How Did We Get Here?

Prior to 2018, sellers with a physical presence in Alabama were excluded from SSUT. But when Amazon acquired Whole Foods, the law was amended to include marketplace facilitators as “eligible sellers.”

This change also gave the Alabama Department of Revenue (ADOR) the authority to decide who qualifies as a marketplace facilitator.

In recent years, ADOR has stretched this definition to include delivery network companies like DoorDash, Shipt, Walmart Marketplace, Target 360, and others.

In practical terms, even when a good is produced, sold, and delivered in your community, ADOR treats it as an online purchase. This regulatory maneuver has come to be known as the “Door Dash Loophole.”

Walmart’s Dark Store Strategy

The problem doesn’t stop there. In July, Walmart announced it is testing “dark store” locations converted from traditional stores into distribution hubs exclusively for online orders.

With online sales falling under SSUT, this provides Walmart a powerful incentive to shift its 131 Alabama stores away from public-facing retail and into closed fulfillment centers.

This development could have serious consequences for every community in Alabama—Tuscaloosa, Thomasville, Anniston, Muscle Shoals, Atmore and beyond.

The Door Dash Loophole is not just a technical issue; it’s a fundamental threat to our local economies and the vibrancy of our communities.

What’s Next

Next week, we’ll continue this conversation by exploring how the Door Dash Loophole affects Alabama’s tourism economy.

In the meantime, you can read more here.

Thank you for standing with us as we work to protect Alabama’s local businesses and communities.

Walt Maddox is the 36th mayor of the City of Tuscaloosa and has served in the office since 2005. These opinions are his own and do not necessarily reflect the views of Tuscaloosa Patch or our parent company.