HB365 Summary

• Requires retailers selling taxable tangible personal property to Alabama residents via Internet or catalog to notify purchasers that consumer use tax must be remitted directly to the Department of Revenue and local governments if the retailer is not collecting sales tax.

• Mandates retailers provide annual summaries by January 31 listing purchases by date, product type, and price, with instructions on how to remit consumer use tax.

• Exempts retailers with total gross sales of $10,000 or less in the preceding calendar year from notification and annual summary requirements.

• Authorizes the Department of Revenue to amend individual income tax forms to allow Alabama residents and part-year residents to remit state and local consumer use taxes annually through their income tax returns for purchases under $1,000 in uncollected use tax.

• Establishes civil penalties up to $1,000 per violation for non-compliance, with 4/10ths of collected use tax revenue deposited to the Education Trust Fund and remaining local government share distributed to counties and municipalities by population.