Nick Derzis, Hoover’s police chief and a candidate for mayor, is calling on city leaders to join an ongoing lawsuit challenging Alabama’s distribution of online sales tax revenue through the state’s Simplified Sellers Use Tax (SSUT) program.

He cited what he called an unfair system that robs Hoover residents of the tax dollars they generate. Earlier this month, Mountain Brook joined Tuscaloosa in the fight against the tax.

“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,” Derzis said in a statement on Wednesday. “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.”

SSUT collects an 8% tax on most online purchases, but the state distributes that revenue based on population instead of where the purchase was made.

RELATED: Mountain Brook joins lawsuit over state’s online tax revenue distribution: ‘This is about fairness’

Derzis argues that as a result, cities like Hoover, Tuscaloosa, Mountain Brook, and many others, are missing out on millions of dollars they would otherwise receive under traditional sales tax systems.

“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.

Derzis criticized the current administration for being asleep at the wheel and pledged, “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. This is not just unfair. It is bad policy,” Derzis said.

According to Derzis, 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.

Sherri Blevins is a staff writer for Yellowhammer News. You may contact her at [email protected].