US Sen. Tommy Tuberville speaks at Earn Local, Keep Local Summit in Tuscaloosa

TUSCALOOSA, Ala. (WIAT) — U.S. Sen. Tommy Tuberville (R-AL) joined Alabama’s mayors Monday to talk about issues affecting the state.

At the Earn Local, Keep Local Summit in Tuscaloosa, leaders said some Alabamians are being overtaxed for online orders and might not even know it. Those who make an online purchase in Alabama pay an 8% simplified sellers use tax.

Half of that revenue goes toward the state education and general fund budgets, while the other is divvied up between cities and counties. Pike Road Mayor Gordon Stone said leaders want to make sure that money is divided fairly.

“If the dollars are being generated by activity in our community, we want that to be fair because those citizens of our community need those services,” Stone said. “So you spread that over all 67 counties, you have that same narrative going on.”

As the executive director of the Higher Education Partnership, Stone said he also wants to make sure Alabama’s universities remain a priority.

“We know in the university world, the more we generate those degrees, the more we generate revenue through our economy,” Stone said. “So they’re two really important issues that need to be considered.”

“This could shut down your community,” said Tuscaloosa Mayor Walt Maddox. “If you’re in Thomasville, Alabama, or Jackson, Alabama, or Brewton, Alabama, you should be very concerned.”

Maddox said some communities rely on these dollars more than others, and that’s why he’s urging lawmakers to take a closer look at the issue.

“We’re not asking for money from an oil well in the Gulf of Mexico,” Maddox said. “We’re not asking for coal severance tax from somewhere up in other parts of our state. All we’re asking for is that the taxes generated in Tuscaloosa stay in Tuscaloosa.”

Tuberville agreed it’s a problem. He said the issue should be tackled on the state level.

“When I get home every day, I got boxes up to here — my wife ordering online,” Tuberville said. “So it’s the future. It’s something you say, ‘Well, it’ll eventually go away.’ It’s not going to go away.”

Maddox said the city of Tuscaloosa will lose around $14.6 million in revenue in 2025 from the online sales tax.