SB307 Alabama 2018 Session

Summary

Primary Sponsor

Trip Pittman

Republican

Session

Regular Session 2018

Title

Sales and use tax, Simplified Sellers Use Tax Remittance Program, out-of-state vendors, physical presence through acquisition of in-state company authorized, sales of tangible personal property subject to sales tax, marketplace facilitators, collection, Secs. 40-23-190, 40-23-191 am'd.

Summary

The bill broadens who can participate in Alabama's Simplified Sellers Use Tax Remittance Program and lets online marketplace platforms collect and remit the tax for marketplace sales.

What This Bill Does

It updates the nexus rules to allow an out-of-state vendor that has physical presence in Alabama only because it acquired an Alabama company to participate in the Simplified Sellers Use Tax Remittance Program. It also clarifies that some sales of tangible personal property are not eligible for the simplified program and must be taxed under the regular sales tax. Additionally, the bill authorizes marketplace facilitators to collect and remit the simplified sellers use tax on Alabama sales made by or for third-party marketplace sellers, with required reporting, recordkeeping, and related protections.

Who It Affects

• Out-of-state vendors that gain physical presence in Alabama through acquiring an in-state company; they may elect to participate in the Simplified Sellers Use Tax Remittance Program to handle Alabama sales tax.
• Marketplace facilitators and the marketplace sellers using those platforms; they may collect and remit the simplified sellers use tax for Alabama sales, must maintain records and provide purchaser statements, and receive amnesty and audit protections under the program.

Key Provisions

• Extends eligibility to participate in the Simplified Sellers Use Tax Remittance Program to an out-of-state vendor whose physical presence in Alabama is established only through the acquisition of an in-state company, allowing continued participation in the program for Alabama sales.
• Authorizes marketplace facilitators to collect and remit the simplified sellers use tax on Alabama retail sales delivered to locations in the state for or on behalf of marketplace sellers, with required reporting, recordkeeping, purchaser invoicing, and related protections.

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