SB86 Alabama 2017 Session

Summary

Primary Sponsor

Trip Pittman

Republican

Session

Regular Session 2017

Title

Use tax, simplified sellers, procedures for collection and distribution of proceeds from out-of-state sellers, six month deferral deleted, disclosures re eligible sellers, reporting, Sec. 40-23-197.1 added; Secs. 40-2-11, 40-23-191, 40-23-193, 40-23-195 am'd.

Summary

The bill updates Alabama's simplified sellers use tax by enabling monthly distributions to local governments, removing a six-month deferral for eligible sellers, clarifying invoicing, and allowing disclosure of participating sellers and dates with new reporting requirements.

What This Bill Does

It authorizes the Department of Revenue to start monthly distributions of the simplified sellers use tax proceeds to counties and municipalities. It removes the six-month deferral for eligible sellers, allowing earlier participation in the program. It simplifies the invoice language for simplified seller transactions and allows the department to disclose the names of eligible sellers along with their start and end dates of participation. It gives the department authority to require reporting of retail sales and customer notifications when a seller does not collect the tax, and it establishes recordkeeping and review provisions for participating sellers.

Who It Affects

• Local governments (counties and municipalities) who will receive monthly distributions of simplified sellers use tax proceeds.
• Eligible sellers participating in the simplified sellers use tax program, who must follow updated invoicing and reporting requirements and may have their participation dates disclosed.
• The Alabama Department of Revenue, which administers the program, handles distributions, reporting, and disclosures.

Key Provisions

• Adds Section 40-23-197.1 to allow monthly distributions of the simplified sellers use tax proceeds to counties and municipalities.
• Amends Sections 40-2-11, 40-23-191, 40-23-193, and 40-23-195 to reflect monthly distributions, removal of the six-month deferral for eligible sellers, updated invoice language, and the disclosure of participating eligible sellers’ names and participation dates.
• Defines terms related to the simplified sellers use tax, including eligible seller, locality, simplified use tax, and the program, and specifies the eight percent tax rate for eligible sellers under the program.
• Requires eligible sellers to maintain records of sales delivered into Alabama and to provide documents showing purchaser, address, amount, and tax collected; authorizes department inspections and review.
• Authorizes the department to require reporting of retail sales and customer notifications when the seller does not collect the tax, within constitutional limits.

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