City of Tuscaloosa files lawsuit to shut down ‘The Walk’ apartment complex over $100K+ in unpaid taxes
The City of Tuscaloosa is petitioning a circuit court to immediately halt operations at the popular student apartment complex “The Walk” until back taxes, interest, and penalties are paid in full
TUSCALOOSA, Ala. (WBRC) - The City of Tuscaloosa has filed a verified complaint in the Circuit Court of Tuscaloosa County seeking to immediately shut down business operations at “The Walk,” a prominent student housing rental complex located near the University of Alabama campus, due to more than $100,000 in unpaid business license taxes.
The legal action follows the city recently declaring several of the apartment units uninhabitable due to mold.
According to the complaint filed on Sept. 1, 2026, the real property located at 899 12th Street is owned and operated by Delaware-based entities The Walk ST, LLC and The Walk, DST (collectively, “The Walk”).
Court documents state that under Tuscaloosa Municipal Code, residential rental businesses must secure a business license and pay quarterly business license taxes. While the owners obtained licenses and paid taxes after acquiring the property in 2022, the city alleges that the business has failed to pay its business license taxes or secure a license since the first quarter of 2025.
Unpaid taxes and missing tax returns
The city alleges that The Walk:
- Has paid no business license taxes for the second, third, or fourth quarters of 2025, nor for the first and second quarters of 2026.
- Filed required quarterly tax returns for April through December 2025 and January through March 2026, but failed to file a return for the second quarter of 2026 (April through June).
- Currently owes at least $102,325.02 in unpaid business license taxes. This total does not include interest, penalties, fees, or taxes due for the unfiled second quarter of 2026.
Trent Smelley, the Director of Revenue Code Enforcement for the City of Tuscaloosa, verified the allegations in the complaint. The city notes that its revenue director previously sent an official notice of licensure failure to the owners, but received no response.
Legal actions requested by the city
The lawsuit outlines three specific counts against the student housing complex:
- Immediate Injunction: A petition under Alabama Code § 11-51-150 to enjoin the owners from conducting any further business operations in Tuscaloosa until all delinquent taxes, interest, penalties, and fees are paid.
- Accounting of Unpaid Taxes: A demand for a complete financial accounting of all business license taxes owed to the city since March 2026, and a judgment against the Delaware entities for the full outstanding balance.
- Property Lien and Foreclosure: A request to attach a tax lien to the real property at 899 12th Street under Alabama Code, and to foreclose on that lien to secure the unpaid funds.
Mississippi-based BankPlus is also named as a defendant in the lawsuit because it holds a mortgage and assignment of leases and rents on the property.
The complaint was submitted on behalf of the city by attorney Wilson F. Green, alongside Scott Holmes and Chad L. Hobbs of the Tuscaloosa City Attorney’s Office.
WBRC has reached out to property management for comment. This story will be updated to reflect any response received.
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