HB660 Summary

• Establishes the Non-Nexus Use Tax Remittance Program allowing sellers without Alabama nexus to voluntarily collect and remit an 8% use tax on tangible personal property delivered into the state via an online system administered by the Department of Revenue.

• Participating non-nexus sellers must apply with the department, certify they lack nexus with Alabama, agree to collect and report taxes, and comply with program procedures; false certification subjects applicants to fraud and negligence penalties.

• Non-nexus sellers receive a 2% discount on taxes properly remitted and are removed from the program if they fail to collect/report taxes timely, establish nexus, or violate compliance terms.

• Tax collected relieves both the seller and purchaser from any additional state or local sales and use taxes; monthly reporting requires only statewide totals without locality-specific information.

• Collected tax proceeds distributed as follows: Department retains administrative costs and discount amounts; remaining balance split 50% to state treasury (75% General Fund, 25% Education Trust Fund), 25% to counties by population, and 25% to municipalities by population, with quarterly distributions.

• Participating sellers granted amnesty for uncollected remote use taxes from the 12 months before program entry, except for matters under audit or already-paid taxes, contingent on maintaining program participation for 36 months.

• Act becomes effective January 1, 2016.