SB233 Alabama 2016 Session

Summary

Primary Sponsor

Trip Pittman

Republican

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

SB233 lets eligible sellers stay in Alabama's simplified seller use tax program after establishing a physical presence, with transitional rules tied to federal law changes.

What This Bill Does

It updates definitions for the Simplified Seller Use Tax Remittance Program and clarifies which sellers remain eligible. Eligible sellers without an Alabama physical presence can continue in the program unless they later establish a physical business address or are required to collect/remit tax through an affiliate with a physical presence, provided they were in the program for at least six months beforehand. If federal law changes to remove limits on Alabama's enforcement against absent physical presence, the program provisions would no longer apply to eligible sellers not registered six months before the change, but would continue for those approved at least six months before the change and for taxpayers who have paid or will pay the tax, who must continue to comply; participating sellers may still receive a 2% discount on properly remitted taxes.

Who It Affects

• Eligible sellers currently or wanting to participate in the Simplified Seller Use Tax Remittance Program that do not have an instate physical presence (and the conditions under which they may continue participation).
• Sellers already approved as program participants at least six months before any future federal-law change, and taxpayers who have paid or will pay the simplified tax, who would continue under transitional rules and may continue to receive the 2% discount.

Key Provisions

• Defines Eligible Seller as a entity that sells tangible property or a service without a physical presence in Alabama and remains eligible for the program unless they establish a physical presence or become required to collect/remit tax via an affiliate with a physical address, provided they were a participant for at least six months prior.
• If federal law changes remove limitations on Alabama's ability to enforce sales/use tax against absent physical presence, the program becomes inapplicable to eligible sellers not registered as participants six months before the change, but continues to apply to those approved at least six months before the change and to taxpayers who have paid or will pay the tax, provided they continue to comply; such participants may keep a 2% discount.
• The act updates sections 40-23-191 and 40-23-198 to reflect these definitions and enforcement references, and clarifies the program and discount provisions.
• Effective date: immediately upon the Governor's approval.

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