HB115 Summary

• Requires wholesalers of grocery items (including tobacco products) and licensed beer distributors making sales in Alabama without collecting sales or use tax to file information reports with the Department of Revenue.

• Beer distributors must report all sales to licensees claiming tax exemptions; grocery wholesalers must report if at least 75% of monthly sales or $5,000,000 or more monthly sales are to retailers with claimed exemptions.

• Reports must include seller's legal name, address, license number, retailer information, total amount sold, resale number, and other information prescribed by the department.

• Filing frequency depends on average non-taxed sales volume: monthly reports due by the 20th of following month for sales exceeding $10,000; quarterly reports for $6,000-$10,000 average; annual reports for $6,000 or less with department approval.

• Sellers failing to file required reports face a penalty of $1,000 per reporting period; penalty also applies for failing to enter appropriate deduction amounts on tax returns.

• Effective October 1, 2016.