HB116 Alabama 2016 Session

Summary

Primary Sponsor

Rod Scott

Democrat

Session

Regular Session 2016

Title

Sales and use tax, simplified seller use tax remittance, definition of seller, continued participation if physical address established, Secs. 40-23-191, 40-23-198 am'd.

Summary

HB116 updates Alabama's Simplified Seller Use Tax Remittance Program to allow eligible sellers to remain in the program even after establishing a physical presence, with rules tying eligibility to prior participation and potential federal-law changes.

What This Bill Does

It updates definitions and references related to the simplified use tax program. It lets eligible sellers stay in the program even if they later establish a physical Alabama presence, as long as they were in the program for at least six months before doing so. It also sets how the program would respond if federal law changes to remove enforcement limits, including which sellers can continue and the continuation of a 2% discount for those who remain compliant.

Who It Affects

• Eligible sellers who do not have an Alabama physical presence (and those who later establish one) in relation to whether they can stay in the program, based on having at least six months of prior participation.
• Sellers and taxpayers affected by potential changes in federal enforcement law, including those registered or participating before such a change and those who have paid or remitted under the program, who may continue to benefit (e.g., the 2% discount) if they meet certain timing conditions.

Key Provisions

• Amends Sections 40-23-191 and 40-23-198 to update definitions and references to federal legislation as it relates to the enforcement of sales and use tax for eligible sellers remitting the simplified seller use tax.
• Defines 'Eligible Seller' as a seller without a physical presence in Alabama (or not required to collect/remit) who remains eligible for the program unless they establish a physical business address for in-state sales or become otherwise required to collect/remit tax, provided they participated in the program for at least six months prior to establishing such presence.
• If federal law changes to remove limitations on enforcing sales/use tax against out-of-state businesses, the program becomes inapplicable to eligible sellers not registered as participants for at least six months before the change; it continues for those registered six months prior and for taxpayers who have paid or remitted under the program, with eligible participants able to keep a 2% discount on properly remitted taxes.
• The act emphasizes continued participation in the Simplified Seller Use Tax Remittance Program and ongoing reporting requirements under the program, with the 2% discount available to qualifying participants.

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