HB115 Alabama 2016 Session

Summary

Primary Sponsor

Ron Johnson

Republican

Session

Regular Session 2016

Title

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

Summary

The bill would require wholesalers of grocery items (including tobacco) and licensed beer distributors to report exempt sales to the Department of Revenue when sales tax was not collected.

What This Bill Does

If enacted, it requires certain sellers to file information reports about exempt transactions with the Department of Revenue; specifies which sellers must report and what information to include; sets reporting frequency based on sales volume; and imposes penalties for noncompliance. The Department would be allowed to adopt rules to implement these requirements, and the act would take effect October 1, 2016.

Who It Affects

• Wholesalers of grocery items and licensed beer distributors that make sales in Alabama for which sales or use tax was not collected, who must file information reports and could face penalties for noncompliance.
• Retailers in Alabama that purchase exempt grocery items, tobacco, or beer and are identified in the reports; their information (e.g., retailer name, address, resale number) would appear in the DoR reports.

Key Provisions

• Requires wholesalers of grocery items and beer distributors to file information reports with the Department of Revenue for exempt sales conducted in Alabama.
• Defines who is a licensed beer distributor and who is considered a seller; specifies reporting obligations for beer distributors and grocery item sellers.
• Grocery item sellers must report if 75% of total monthly sales or $5,000,000 or more in monthly sales are to retailers and an exemption was claimed; beer distributors must report exempt sales to all licensees.
• Reports must include detailed information such as legal name, address, liquor/beverage license number (where applicable), retailer name and address, total exempt sales, resale numbers, and other department-prescribed data.
• Reporting deadlines: monthly reports are due by the 20th of the month following the sale; quarterly or annual reporting is allowed if prior-year non-taxed sales meet certain thresholds.
• Penalties of $1,000 per reporting period for failing to file or for incorrect deductions; the Department may assess penalties for noncompliance.
• The Department of Revenue may adopt rules to administer and 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