HB470 Summary

• Establishes substantial nexus for out-of-state vendors with in-state related parties who share identical or substantially similar names, trademarks, or business plans, requiring collection of state and local use tax.

• Allows out-of-state vendors establishing physical presence only through acquisition of an in-state company to participate in the Simplified Sellers Use Tax Remittance Program by collecting an 8% simplified use tax.

• Requires marketplace facilitators with more than $250,000 in Alabama retail sales over 12 months to register and collect simplified sellers use tax on sales by January 1, 2019, or report such sales to customers.

• Adds a 1% additional simplified sellers use tax on tangible personal property sold by eligible sellers or marketplace facilitators, with proceeds distributed to municipalities based on population ratios.

• Provides marketplace facilitators and sellers with 2% collection discount, audit protections, amnesty provisions, and refund/credit procedures for overpayment of simplified use taxes.