SB218 Summary

• Modifies the Simplified Sellers Use Tax Remittance Program by redefining "eligible seller" to include marketplace facilitators and clarifying that sellers must not have physical presence in Alabama or be required to collect sales/use taxes.

• Establishes that eligible sellers collect and remit an 8% simplified use tax on eligible sales instead of varying state and local sales/use taxes, with collection relieving both seller and purchaser from additional state or local taxes.

• Requires marketplace facilitators meeting a qualifying sales threshold ($250,000 annually) to either register to collect and remit the 8% simplified use tax on marketplace sales or report such sales and provide customer notifications.

• Mandates the Department of Revenue calculate by December 31, 2019, a combined rate (sum of state, average county, and average municipal rates) and effective October 1, 2020, sellers must collect and remit a local rate adjustment equal to any excess of the combined rate over 8%, capped at 1 percentage point.

• Repeals Section 40-23-190 and becomes effective October 1, 2019.