Mayoral candidate Nick Derzis called upon the city of Hoover on Wednesday to immediately join the Simplified Sellers Use Tax lawsuit challenging Alabama’s current distribution of online sales tax revenue, citing an unfair system that robs Hoover residents of the tax dollars they generate.
“Hoover residents have some of the highest median household incomes in the state and they shop online at a rate that generates millions in sales tax revenue,” said Derzis. “But instead of those dollars staying in Hoover to fund our roads, our parks, our schools, and our first responders, they’re being sent across the state to other cities. That’s unacceptable, and it’s time we do something about it.”
Alabama’s Simplified Sellers Use Tax, SSUT, collects an eight percent tax on most online purchases, but the state distributes that revenue based on population instead of where the purchase was made. As a result, cities like Hoover, Tuscaloosa and Mountain Brook are missing out on millions of dollars they would otherwise receive under traditional sales tax systems, Derzis shared.
“It’s time to stop talking and start acting. Tuscaloosa and Mountain Brook are finally stepping up and demanding fairness. Hoover should be right there with them fighting for what is ours,” Derzis said. “The current administration has been asleep at the wheel. As Mayor, I will fight for every dollar that belongs to Hoover residents. Our tax dollars should stay here and work for the people who paid them.”
“Hoover has the busiest retail corridor in Alabama. We are a regional economic driver. When our residents shop online, those tax dollars should stay at home,” he said. “This is not just unfair. It is bad policy.”
“The SSUT generated over $850 million statewide in 2024. Yet cities like Hoover, with significant brick-and-mortar stores, fulfillment operations, and delivery networks are getting a fraction of what they would receive under traditional local sales tax structures,” Derzis’ release concluded.
The municipal election for the city of Hoover will be held on Tuesday, August 26, 2025.
