SB437 Summary

• Establishes the Simplified Seller Use Tax Remittance Program allowing eligible sellers without physical presence in Alabama to voluntarily collect and remit an 8% use tax on items delivered into the state in lieu of varying local sales taxes.

• Eligible sellers participating in the program collect a flat 8% tax rate with no requirement to report sales by location or locality, and are relieved from other state and local taxes, franchise taxes, and licensing requirements.

• Sellers remit collected taxes monthly by the 20th of the following month through an online system administered by the Alabama Department of Revenue and receive a 2% collection discount for timely remittance.

• Tax proceeds are distributed with 50% to the state treasury (75% General Fund, 25% Education Trust Fund), 25% to counties, and 25% to municipalities, all based on population from the most recent federal census.

• Provides amnesty from uncollected use taxes for the 12-month period prior to program participation, granted upon acceptance into the program, and allows taxpayers to claim refunds or credits for overpayments exceeding actual local tax rates.