GUEST COLUMN: Unlocking Destination Sourcing For Rural Alabama

*This is a column written by Tuscaloosa Mayor Walt Maddox*

TUSCALOOSA, AL — Rural Alabama stands at a pivotal crossroads under the current structure of the Simplified Sellers Use Tax (SSUT). This week, we want to highlight a critical risk: the missed opportunity to fully capitalize on the virtual marketplace — an opportunity made possible by the rapid expansion of Alabama’s broadband network.

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Not long ago, residents in rural Alabama had no choice but to travel into commercial hubs for necessities—groceries, electronics, equipment, and more. But two transformative shifts have redefined this dynamic:

Broadband Expansion: Thanks to the leadership of Governor Kay Ivey and the Alabama Legislature, over 90% of Alabama now has access to broadband connectivity. Simply put, the virtual marketplace is now open to almost every Alabamian with a smartphone.

E-commerce Accessibility: Major retailers like Amazon, Kroger, and countless third-party vendors can now deliver goods directly to homes in both rural and urban areas. The geographic barriers that once limited rural consumer access have been all but eliminated.

The impact of this expansion is undeniable. A July 30, 2024, Wall Street Journal article affirmed that, “Amazon is reaching into the remote corners of America to deliver its packages quicker to customers in rural areas, a push that represents its last frontier of ultrafast delivery in the U.S. Amazon isn’t trying to deliver itself to 100% of its customers in the U.S., but as of now is targeting around 90%.”

In an additional article by the Wall Street Journal that came out just this week, Amazon is quoted as saying that they would offer same-day-delivery to over 4,000 smaller cities, towns and rural areas by the end of the year.

The bottom line is that Alabama’s broadband infrastructure is in place. The consumer demand is growing. But under the current SSUT framework, rural Alabama risks losing out on the full revenue potential that this new digital economy offers.

Next week, we’ll dive into how destination sourcing could provide a more equitable — and substantial— revenue stream for rural Alabama compared to the SSUT model.

Thank you for your continued commitment to keeping local dollars in local 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.