SB437 Alabama 2015 Session

Summary

Primary Sponsor

Trip Pittman

Republican

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

SB437 creates The Simplified Sellers Use Tax Remittance Program, letting eligible non-nexus sellers collect and remit an 8% simplified use tax on items delivered into Alabama on behalf of customers.

What This Bill Does

It establishes an online system managed by the Alabama Department of Revenue for eligible sellers to collect, report, and remit an 8% simplified use tax on sales delivered into Alabama. Participating sellers do this in lieu of other state or local sales/use taxes, and they may receive a 2% discount for timely remittance. The program includes eligibility rules, reporting requirements, and penalties for noncompliance, plus a distribution plan for the collected funds to state funds, counties, and municipalities. It also offers amnesty for past uncollected remote use tax for sellers that join the program and remains in compliance for at least 36 months, with certain caveats around audits and already-paid taxes, and provides protections against local audits of participating sellers.

Who It Affects

• Eligible sellers (non-nexus sellers) who choose to participate; they will collect 8% tax on eligible sales delivered into Alabama, remit online, may qualify for a 2% discount for timely remittance, and must meet reporting/record-keeping requirements or face removal.
• Alabama consumers purchasing items delivered into the state from participating sellers; the seller collects the simplified use tax on their behalf and their purchases are relieved from other state/local taxes for those transactions.
• Counties and municipalities in Alabama; they receive a share of the tax proceeds distributed quarterly based on population, in addition to funds allocated to the state General Fund and Education Trust Fund.
• The Alabama Department of Revenue; it administers the program, processes applications, collects reports, enforces compliance, and distributes funds.

Key Provisions

• Establishes The Simplified Sellers Use Tax Remittance Program allowing eligible sellers to collect, report, and remit an 8% simplified sellers use tax on sales delivered into Alabama.
• Participation is by election of the eligible seller; the department provides an online system for reporting and remittance and may require information about Alabama sales; eligible sellers must certify eligibility and agree to compliance and reporting terms.
• The simplified sellers use tax is 8% of the sale price; it replaces other state/local sales or use taxes for transactions covered by the program; reporting is monthly to the department by the 20th day of the following month; statewide totals are reported, not local detail.
• Eligible sellers must retain exemption certificates and related documents; purchasers receive an invoice showing tax collected and the program account number; the department may prohibit local audits of participating sellers.
• A 2% discount is available to participating sellers for properly collected and timely remitted taxes; the department can set rules for administering the discount.
• The department may adopt rules to implement the program; records of all sales delivered into Alabama must be kept and made available for department review upon request.
• Refunds/credits are available for overpayments of simplified use tax; the process requires proper documentation and petitions processed by the department.
• Proceeds are distributed to state funds (General Fund and Education Trust Fund) and to counties and municipalities based on population; distributions are made quarterly.
• Amnesty is provided for uncollected remote use tax from the 12 months before participation, subject to conditions; participation must continue for at least 36 months; amnesty excludes taxes already paid or remitted and does not apply where an audit has begun but not resolved.
• If federal law changes remove state ability to enforce nexus on non-in-state sellers, the act becomes inapplicable to those not registered, but continues to apply to those already participating for eligible transactions; participating sellers may continue to receive the 2% discount under those terms.
• Effective date is October 1, 2015.

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