HB364 Alabama 2025 Session

Summary

Primary Sponsor

James LomaxRepresentative

Republican

Session

2025 Regular Session

Title

Simplified sellers use tax, marketplace facilitator further defined to exclude local delivery services

Summary

HB364 would exclude local delivery services from being considered marketplace facilitators for Alabama's simplified sellers use tax.

What This Bill Does

It removes local delivery services from the definition of marketplace facilitator and from the simplified sellers use tax remittance program. Local delivery service transactions would be outside the SSUT program but still subject to state and local sales/use taxes. The bill defines local delivery services as those that pick up goods from Alabama Retail Sellers and deliver them via couriers or personal transport, or operate platforms to facilitate delivery, with conditions on the Alabama Seller's address or affiliation. The changes take effect on October 1, 2025.

Who It Affects

• Local delivery services (couriers and delivery platforms) in Alabama would no longer be treated as marketplace facilitators for SSUT purposes and their SSUT-related remittance obligations would not apply.
• Alabama Retail Sellers and marketplace sellers that use or rely on local delivery services would have deliveries handled outside the SSUT remittance program and would instead be subject to regular state and local sales/use tax rules for those deliveries.

Key Provisions

• Excludes local delivery services from the definition of marketplace facilitator in Section 40-23-199.2.
• Local delivery service transactions are outside the simplified sellers use tax remittance program but remain subject to state and local sales and use taxes.
• Defines local delivery service to include couriers or individuals delivering from Alabama Retail Sellers and platforms used to facilitate such delivery, with seller address or affiliation requirements.
• Specifies that when goods are picked up at the Alabama Retail Seller location, the seller collects and remits state and local taxes.
• Marketplace facilitators collecting SSUT remain subject to existing rules, discounts, amnesty protections for eligible sellers, and related recordkeeping and reporting requirements.
• Effective date: October 1, 2025.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Taxation & Revenue