SB25 Alabama 2015 1st Special Session

Summary

Primary Sponsor

Trip Pittman

Republican

Session

First Special Session 2015

Title

Grocery items, tobacco products, beer, sales not taxed at time of sale reported to Department of Revenue

Summary

SB25 would require wholesalers of grocery items (including tobacco) and licensed beer distributors to report exempt, non-taxed sales to the Alabama Department of Revenue, with penalties for noncompliance.

What This Bill Does

If enacted, the bill requires wholesalers of grocery items and beer distributors to file information reports with the Department of Revenue for sales made in Alabama where sales or use tax was not collected. For grocery items (including tobacco), reporting is required when a large share of sales to retailers meets certain thresholds; the report must detail seller and retailer information and the amount sold, and is due by the 20th of the month following the sale (with quarterly or annual options if average non-taxed sales are below certain levels). Beer distributors must report exempt sales to licensees as well. A penalty of $1,000 per reporting period can be assessed for failure to file, and the department may adopt rules to implement the act, which takes effect October 1, 2016.

Who It Affects

• Wholesalers of grocery items and licensed beer distributors operating in Alabama, who must file information reports for exempt sales and may face penalties for noncompliance.
• Retailers who receive exempt purchases (the data include retailer names and addresses, to whom exemptions were claimed), and are indirectly affected through reporting requirements.
• Alabama Department of Revenue, which will receive the reports, enforce the requirements, and adopt implementing rules.

Key Provisions

• Requires information reports to be filed for sales in Alabama where sales or use tax was not collected at the time of sale.
• Grocery items report threshold: 75% of total monthly sales to retailers or $5,000,000 or more in monthly sales, with reporting due as prescribed.
• Beer distributors must report exempt sales to licensees; wholesalers must report exempt sales that meet the threshold.
• Reports must include specific details such as seller's name and address, retailer's name and address, total taxed amount, resale numbers, and other data required by the department.
• Due dates: reports are generally due by the 20th of the month following the sale; quarterly or annual reporting options exist based on average non-taxed sales.
• Penalty: $1,000 per reporting period for failure to file or for incorrect deductions on returns.
• The Department of Revenue may adopt rules to implement the act.
• Effective date: October 1, 2016.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Sales and Use Tax