SB 300

Under current law, sales and use taxpayers are required to file reports monthly or quarterly

In addition, lodgings taxpayers are required to file reports monthly. This bill would provide qualifying seasonal sales, use, and lodgings taxpayers the option to file on a quarterly, semi-annual, or annual basis

Relating to sales, use, and lodgings taxes; to provide for additional filing frequency options and amount limits for the filing of sales, use, and lodgings tax reports.

Section 1

Sections 40-23-7, 40-23-68, 40-26-3, Code of Alabama 1975, are amended to read as follows:

§40-23-7.

(a) The taxes levied under the provisions of this division, except as otherwise provided in subsection (d), shall be due and payable in monthly installments on or before the 20th day of the month next succeeding the month in which the tax accrues.

(b) Except as otherwise provided in subsection (d) on or before the 20th day of each month, every person on whom the taxes levied by this division are imposed shall report to the department, on a form prescribed by the department, a true and correct statement showing such information as the department may require, and shall pay to the department the amount of taxes shown to be due.

(c) Any taxpayer liable for taxes under the provisions of this division whose average monthly state sales tax liability was two thousand five hundred dollars ($2,500) or greater during the preceding calendar year shall make estimated payments to the department on or before the 20th day of the month in which the liability occurs as follows:

(1) The amount of the first estimated payment shall be 66 2/3 percent of the taxpayer's actual tax liability for the month of October 1983; thereafter the amounts of the payment shall be the lesser of 66 2/3 percent of the taxpayer's actual tax liability for the same calendar month of the preceding year or 66 2/3 percent of the current month's estimated liability.

(2) Any outstanding credit or deficit arising from the taxpayer's overpayment or underpayment of his final liability shall be applied to either increase or reduce, as the case may be, that month's final tax liability which shall be reported and paid not later than the 20th day of the month next succeeding the month in which the tax accrues.

(3) The provisions of this subsection shall not apply to the provisions of Sections 11-51-180, 11-51-200, 40-12-4, nor to any municipal or county taxes levied by past or future special or local acts of the Legislature.

(d) When the total state sales tax for which any person is liable under this division averages less than two hundred dollars ($200) per month during the preceding calendar year, a quarterly return and remittance in lieu of the monthly returns may be made, by election of the taxpayer to the department, on or before the 20th day of the month next succeeding the end of the quarter for which the tax is due under any rules and regulations as may be prescribed. The election to file quarterly shall be made in writing no later than February 20 of each year and shall be filed with the department. Notwithstanding the above, no state sales tax return shall be due until January 20 of each year unless the total state sales tax for which any person is liable under this division during the preceding calendar year exceeds ten dollars ($10). Taxpayers meeting the criteria set forth in the subdivisions of this subsection may elect to file quarterly, semi-annually, or annually. Any election to file quarterly, semi-annually, or annually shall be made in writing no later than February 20 of each year and shall be filed with the department in the manner prescribed by the department. Qualifying taxpayers electing to file quarterly, semi-annually, or annually, shall report to the department, on a form prescribed by the department, a true and correct statement showing such information as the department may require. Qualifying taxpayers shall pay to the department the amount of tax shown to be due on or before the applicable deadlines, under any rules and regulations as may be prescribed, as follows:

(1) When the total state sales tax for which any person is liable under this division is less than $2,400 during the preceding calendar year, the person may elect to file quarterly returns. Quarterly returns and payments of the amount of tax shown to be due shall be due on or before the 20th day of the month next succeeding the end of the quarter for which the tax is due.

(2) When the total state sales tax for which any person is liable under this division is less than $1,200 during the preceding calendar year, or the person liable for the tax has made retail sales in this state during no more than two, thirty consecutive day periods during the preceding calendar year, the person may file semi-annual returns. The semi-annual returns and payment of the amount of the tax shown to be due shall be due on or before July 20 and January 20 following the end of the six-month period for which the tax is due.

(3) When the total state sales tax for which any person is liable under this division during the preceding calendar year is less than six hundred dollars ($600), or the person liable for the tax has made retail sales in this state during no more than one, thirty consecutive day period during the preceding calendar year, the person may elect to file an annual return. The annual return and payment of the tax shown to be due shall be due on or before January 20 following the end of the annual period for which the tax is due.

(e) The department, for good cause, may extend the time for making any state or state-administered return required under the provisions of this division, but the time for filing any such return shall not be extended for a period greater than 30 days from the date such return is due to be made.

§40-23-68.

(a) Except as otherwise provided in subsection (f), the tax imposed by this article shall be due and payable to the department monthly on or before the 20th day of the month next succeeding each month during which the storage, use or other consumption of tangible personal property became taxable hereunder.

(b) Every seller or person engaged in making retail sales of tangible personal property for storage, use or other consumption in this state, who alternatively:

(1) Maintains, occupies, or uses, permanently or temporarily, directly or indirectly, or through a subsidiary, or agent by whatever name called, an office, place of distribution, sales or sample room or place, warehouse or storage place or other place of business;

(2) Qualifies to do business or registers with the state to collect the tax levied by this chapter;

(3) Employs or retains under contract any representative, agent, salesman, canvasser, solicitor or installer operating in this state under the authority of the person or its subsidiary for the purpose of selling, delivering, or the taking of orders for the sale of tangible personal property or any services taxable under this chapter or otherwise solicits and receives purchases or orders by any agent or salesman;

(4) Solicits, pursuant to a contract with a broadcaster or publisher located in this state, orders for tangible personal property by means of advertising which is disseminated primarily to consumers located in this state and only secondarily to bordering jurisdiction;

(5) Solicits orders for tangible personal property by mail if the solicitations are substantial and recurring and if the retailer benefits from any banking, financing, debt collection, telecommunication, or marketing activities occurring in this state or benefits from the location in this state of authorized installation, servicing, or repair facilities. Notwithstanding the previous sentence, a seller who contracts with a provider of call center services shall not be deemed to benefit from telecommunication activities occurring in this state or from the location in this state of authorized installation, servicing, or repair facilities merely as a result of contracting for and receiving only call center services from a call center located in this state. The preceding sentence shall only apply for call centers, as authorized or specified in Division 3 of Article 17 of Chapter 10 of Title 41, and placed in service in this state on or before October 1, 2003;

(6) Has, under a franchise or licensing arrangement or contract, a franchisee or licensee operating under its trade name;

(7) Solicits, pursuant to a contract with a cable television operator located in this state, orders for tangible personal property by means of advertising which is transmitted or distributed over a cable television system in this state;

(8) Solicits orders for tangible personal property by means of a telecommunication or television shopping system which is intended by the person to be broadcast by cable television or other means of broadcasting, to consumers located in this state;

(9) Maintains any other contact with this state that would allow this state to require the seller to collect and remit the tax due under the provisions of the Constitution and laws of the United States; or

(10) Distributes catalogs or other advertising matter and by reason thereof receives and accepts orders from residents, within the State of Alabama, shall be subject to all the provisions of this chapter and shall, except as otherwise provided in subsection (f), on or before the 20th day of the month following the close of each month file with the department a return for the preceding month in such form as may be prescribed by the department showing the total sales price of the tangible personal property sold by such seller, the storage, use, or consumption of which became subject to the tax imposed by this article during the preceding month and such other information as the department may deem necessary for the proper administration of this article.

(c) The return shall be accompanied by a remittance of the amount of tax herein required to be collected by the seller during the period covered by the return. Returns shall be signed by the seller or his duly authorized agent but need not be verified by oath.

(d) Except as otherwise provided in subsection (f), every person purchasing tangible personal property, the storage, use, or other consumption of which is subject to the tax imposed by this article, and who has not paid the tax due with respect thereto to a seller required or authorized hereunder to collect the tax, shall on or before the 20th day of the month following the close of each month file with the department a return for the preceding month in such form as may be prescribed by the department showing the total sales price of the tangible personal property purchased by such person, the storage, use, or other consumption of which became subject to the tax imposed by this article during the preceding month and with respect to which the tax was not paid to a seller required or authorized hereunder to collect the tax, and such other information as the department may deem necessary for the proper administration of this article. The return shall be accompanied by a remittance of the amount of tax herein imposed and not paid to a seller required or authorized hereunder to collect the tax during the period covered by the return. Returns shall be signed by the person liable for the tax or his duly authorized agent, but need not be verified by oath.

(e) For the purpose of the proper administration of this article and to prevent evasion of the tax and the duty to collect the same herein imposed, it shall be presumed that tangible personal property sold by any person for delivery in this state is sold for storage, use, or other consumption in this state unless the person selling such property has taken from the purchaser a certificate signed by and bearing the name and address of the purchaser to the effect that the property was purchased for resale, and it shall be further presumed that tangible personal property shipped to this state by the purchaser thereof was purchased from a retailer on and after March 1, 1939, for storage, use, or other consumption in this state. Except as otherwise provided in subsection (f), any seller making cash and credit sales for storage, use, or other consumption in Alabama may report such cash sales and shall thereafter include in each monthly report all credit collections made during the preceding month, and shall pay the taxes due thereon at the time of filing such report, but in no event shall the gross proceeds of credit sales be included in the measure of the tax to be paid until collections of such credit sales shall have been made.

(f) When the total state use tax for which any person is liable under this division averages less than two hundred dollars ($200) per month during the preceding calendar year, a quarterly return and remittance in lieu of the monthly returns may be made, by election of the taxpayer to the department, on or before the 20th day of the month next succeeding the end of the quarter for which the tax is due under such rules and regulations as may be prescribed by the department. The election Taxpayers meeting the criteria set forth in the subdivisions of this subsection may elect to file quarterly, semi-annually, or annually. Any election to file quarterly, semi-annually, or annually shall be made in writing no later than February 20 of each year and shall be filed with the department in the manner prescribed by the department. The department, for good cause, may extend the time for making any return required under the provisions of this chapter, but the time for filing any such return shall not be extended for a period greater than 30 days from the date such return is due to be made. Qualifying taxpayers electing to file quarterly, semi-annually, or annually, shall report to the department, on a form prescribed by the department, a true and correct statement showing such information as the department may require. Qualifying taxpayers shall pay to the department the amount of tax shown to be due on or before the applicable deadlines, under any rules and regulations as may be prescribed, as follows:. Notwithstanding the above, no state use tax return shall be due until January 20 of each year unless the total state use tax for which any person is liable under this division during the preceding calendar year exceeds ten dollars ($10).

(1) When the total state use tax for which any person is liable under this article is less than $2,400 during the preceding calendar year, the person may elect to file quarterly returns. Quarterly returns and payment of the amount of tax shown to be due shall be due on or before the 20th day of the month next succeeding the end of the quarter for which the tax is due under such rules and regulations as may be prescribed by the department.

(2) When the total state use tax for which any person is liable under this article is less than $1,200 for the preceding calendar year or the person liable for the tax has made no more than two transactions subject to use tax during the preceding calendar year, the person may elect to file semi-annual returns. The semi-annual returns and payment of the tax shown to be due shall be due on or before July 20 and January 20 following the end of the six-month period for which the tax is due.

(3) When the total state use tax for which any person is liable under this article during the preceding calendar year is less than six hundred dollars ($600) or the person liable for the tax has made no more than one transaction subject to use tax during the preceding calendar year, the person may elect to file an annual return. The annual return and payment of the tax shown to be due shall be due on or before January 20 following the end of the annual period for which the tax is due.

§40-26-3.

(a) The taxes levied under the provisions of this chapter, except as otherwise provided in paragraph (b), shall be due and payable in monthly installments on or before the twentieth day of the month next succeeding the month in which the tax accrues. On or before the twentieth day of each month after this chapter has taken effect, every person, firm or corporation on whom the taxes levied by this chapter are imposed shall render to the Department of Revenue, hereinafter referred to as the department, on a form prescribed by the department, a true and correct statement showing the gross proceeds of the business for the next preceding month, together with such other information as the department may demand and require, and at the time of making such monthly report the taxpayer shall compute the taxes due and shall pay to the department the amount of taxes shown to be due. The department, for good cause, may extend the time for making any return required under the provisions of this chapter, but the time for filing any such return shall not be extended for a period greater than 30 days from the date such return is due to be made.

(b) Taxpayers meeting the criteria set forth in the subdivisions of this subsection may elect to file quarterly, semi-annually, or annually. Any such election to file quarterly, semi-annually, or annually shall be made in writing no later than February 20 of each year and shall be filed with the department in the manner prescribed by the department. The department, for good cause, may extend the time for making any return required under the provisions of this chapter, but the time for filing any such return shall not be extended for a period greater than 30 days from the date such return is due to be made. Qualifying taxpayers electing to file quarterly, semi-annually, or annually, shall report to the department, on a form prescribed by the department, a true and correct statement showing such information as the department may require. Qualifying taxpayers shall pay to the department the amount of tax shown to be due on or before the applicable deadlines, under any rules and regulations as may be prescribed, as follows:

(1) When the total state transient occupancy tax for which any person is liable under this chapter is less than $2,400 during the preceding calendar year, the person may elect to file quarterly returns. Quarterly returns and the amount of tax shown to be due shall be due on or before the 20th day of the month next succeeding the end of the quarter for which the tax is due.

(2) When the total state transient occupancy tax for which any person is liable under this chapter is less than $1,200 during the preceding calendar year or the person liable for the tax has provided accommodations during no more than two, thirty consecutive day periods during the preceding calendar year, the person may elect to file semi-annual returns. The semi-annual returns and payment of the tax shown to be due shall be due on or before July 20 and January 20 following the end of the six-month period for which the tax is due. (3) When the total state transient occupancy tax for which any person is liable under this chapter is less than six hundred dollars ($600) for the preceding calendar year or the person liable for the tax provides accommodations during no more than one, thirty consecutive day period during the preceding calendar year, the person may elect to file an annual return. The annual return and payment of the tax shown to be due shall be due on or before January 20 following the end of the annual period for which the tax is due.

Section 2

This act shall become effective on the first day of the third month following its passage and approval by the Governor, or its otherwise becoming law.