City of Huntsville v. City of Madison

MADDOX, Justice.

This case presents a dispute between two Alabama municipalities over which one is the taxing authority under the “withdrawal for use” provisions of State and municipal taxing statutes. The issue is one of first impression, and raises the question of which of the two municipalities, Huntsville or Madison, can levy taxes with respect to certain “self-consuming” transactions, under the “withdrawal for use” provisions contained in both § 40 — 23—l(a)(10), Ala.Code 1975, and City of Huntsville Ordinance No. 65-360, Art. II, Div. 2, § l(j).

The specific question is whether Huntsville…