SB153 Alabama 2019 Session

Summary

Primary Sponsor

Tim MelsonSenator

Republican

Session

Regular Session 2019

Title

Taxation, simplified sellers use tax, updates to the amnesty and class action provisions, collection of tax clarified, Sec. 40-23-199 am'd.

Summary

The bill updates Alabama's simplified sellers use tax rules by expanding amnesty for eligible sellers, restricting class actions, and clarifying when the simplified tax applies.

What This Bill Does

It provides amnesty for eligible sellers for uncollected simplified sellers use tax on sales to Alabama purchasers for the 12 months before their participation and all periods before October 1, 2019, subject to conditions. Amnesty means no penalties or interest for those periods if the seller continues to collect, report, and remit the tax for at least 36 months, but it is not available if an audit is ongoing or for taxes already paid, and it applies only to the seller’s tax, not buyers' remote taxes. The bill also bars class-action lawsuits by customers for overpayments of simplified SUT against eligible sellers and clarifies that simplified SUT cannot be collected in place of regular sales/use tax collected by licensing officials.

Who It Affects

• Eligible sellers participating in the simplified sellers use tax program: may receive amnesty for uncollected SUT on specified past sales, provided they apply after being accepted into the program and meet ongoing compliance requirements.
• Customers and consumers who buy from those eligible sellers: cannot file class actions for overpayments of simplified SUT against the eligible sellers; the bill clarifies that such overpayments may not be pursued through class action.

Key Provisions

• Amnesty for uncollected simplified sellers use tax for the 12 months before participation and for periods prior to October 1, 2019, with conditions.
• Amnesty precludes assessments of uncollected simplified SUT, along with penalties and interest, during the amnesty period if the seller remains in the program and complies for at least 36 months.
• Amnesty not available if an audit has begun and is not resolved, and not available for taxes already paid or remitted.
• Amnesty applies only to tax owed by the seller as a seller, not to remote use taxes owed by buyers.
• No class action may be filed against an eligible seller in Alabama courts for overpayment of simplified SUT.
• Section 2 clarifies that simplified SUT cannot be collected in lieu of regular sales/use tax collected by licensing officials.
• Effective date: immediately after 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