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AL HB418
Bill
Status
4/11/2019
Primary Sponsor
Roderick Scott
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AI Summary
HB418 Summary
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Repeals Section 40-23-190, eliminating the affiliated nexus provision that required sellers with in-state affiliates to collect and remit sales or use tax.
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Requires the Department of Revenue to calculate by December 31, 2019, a combined rate equal to the sum of state, average county, and average municipal sellers use tax rates, rounded to the nearest one percent, based on rates in effect January 1, 2019.
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Effective October 1, 2020, establishes a local rate adjustment on simplified sellers use tax equal to any excess of the combined rate over the current simplified rate, capped at one percentage point above the existing simplified rate.
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Modifies the definition of "eligible seller" to remove language regarding affiliate-created nexus, and makes marketplace facilitators subject to simplified sellers use tax collection and remittance requirements when exceeding $250,000 in qualifying annual retail sales.
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Becomes effective October 1, 2019, following passage and Governor approval.
Legislative Description
Sales and use tax, simiplified seller use tax on sellers selling goods without a physical presence in state, affiliated nexus repealed, one-time average state and local sellers use tax rate, Sec. 40-23-190 repealed; Secs. 40-23-191, 40-23-199.2 am'd.
Taxation
Last Action
Ways and Means General Fund first Amendment Offered
4/18/2019