HB660 Alabama 2015 Session

Summary

Primary Sponsor

Rod Scott

Democrat

Session

Regular Session 2015

Title

Non-nexus sellers use tax, method for remittance on behalf of customer, provided, Non-Nexus Use Tax Remittance Act, Secs. 40-23-191 to 40-23-199, inclusive, added

Summary

HB660 would create a state program allowing non-nexus sellers to collect and remit an 8% use tax on Alabama-delivered purchases on behalf of customers through an online system run by the Department of Revenue.

What This Bill Does

The bill creates The Non-Nexus Use Tax Remittance Program, enabling participating non-nexus sellers to collect, report, and remit an 8% non-nexus use tax for sales delivered into Alabama. Participation is voluntary and administered by the Department of Revenue, with an online system for reporting statewide totals on a monthly basis and no local-detail reporting; participants remain outside of Alabama nexus and other local taxes. It provides for exemptions and required recordkeeping, a 2% discount for timely remittance, and penalties/removal for noncompliance, while outlining how funds from the tax are distributed to state funds, counties, and municipalities. The act also includes amnesty for prior under-collected taxes for new participants who maintain compliance for 36 months, and a pathway for possible inapplicability if a national agreement on remote collection is enacted.

Who It Affects

• Non-nexus sellers that choose to participate; they would collect, report, and remit the 8% tax on Alabama-delivered sales, keep required records, and could be removed for noncompliance.
• Alabama purchasers/customers whose purchases are delivered into Alabama; their transactions would be taxed at 8% via the participating seller, with potential exemptions and refunds if overpayment occurs.

Key Provisions

• Establishes The Non-Nexus Use Tax Remittance Program in sections 40-23-191 to 40-23-200, administered by the Alabama Department of Revenue.
• Defines terms (including non-nexus seller, nexus, and the 8% non-nexus use tax) and sets the 8% tax rate for program participants.
• Requires participating sellers to collect, report, and remit the tax through an online system, provide purchaser statements, and maintain exemption documents; local audits of participants are excluded.
• Allows a 2% discount to participating sellers for timely remittance; prescribes recordkeeping, reporting timelines (by the 20th of the following month), and possible penalties for noncompliance.
• Provides amnesty for uncollected/unpaid taxes for the 12 months before participation, conditional on continued participation for 36 months, with certain exclusions and tolling of the statute of limitations.
• Distributes collected funds: 50% to the state (75% General Fund, 25% Education Trust Fund) and 25% to each county and 25% to each municipality by population, paid quarterly.
• Contains a provision that, if a national remote-sales agreement is enacted, the act may become inapplicable to non-participants and continue to apply to those already in the program under certain conditions.

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

Subjects

Taxation