Mobile mayor says city joined lawsuit over Alabama�s internet sales tax, pledges to pursue lease options; South MacGregor reopening set for Dec. 11

Mayor Gottes announced at the Mobile City Council meeting Tuesday that the city has joined a multijurisdictional lawsuit challenging Alabamas simplified sales/use tax (SSUT) program, saying the city is seeking to recover local sales tax revenue it believes is being diverted under the states current structure. "By our calculations, the city of Mobile is losing out around $34,000,000 a year under the current structure," he said.

Gottes described the lawsuit as part of a broader effort to "protect our schools, our roads, our citizens" and said joining other cities in the case does not end negotiations with the Legislature. He said the legal action is intended to push for a fairer distribution of sales tax revenue generated by internet purchases.

On another matter, Gottes addressed recent public discussion about the citys lease for office space in the county building. He said the county had notified the city of a proposed rent increase of nearly 90 percent and that he has instructed staff "to pay the rent that we were paying under the previous agreement" while negotiations continue. "I can't just pay out the city's money without having an agreed amount that is being paid out for a specific purpose," he said, adding that staff will explore options to protect the city's fiscal position.

The mayor also announced the long-delayed reopening of South MacGregor Avenue. After more than two years of construction, the roadway will reopen to traffic on Dec. 11, with a ribbon-cutting ceremony at 8:30 a.m. He called the project a roughly $25,000,000 investment and said it will modernize the corridor and improve safety and traffic flow.

Council members responded with support for the announcements. Councilman Fleming thanked engineers and neighbors for their patience on the MacGregor project; other council members urged continued engagement on lease options and noted the potential budgetary implications of a large rent increase. The council did not take formal action on the lawsuit or the lease at Tuesday's meeting.

The next procedural steps on the lease were not specified during the meeting; Gottes said staff and council will continue to pursue options and negotiations.