AL HB36

Levies an additional simplified sellers use tax of 1.25% on tangible personal property sold or delivered into Alabama by eligible sellers and marketplace facilitators, in addition to the existing 8% tax.

All proceeds from the new 1.25% tax are distributed to local boards of education based on average daily membership of the preceding school year in public schools.

Makes technical and nonsubstantive revisions to existing code sections related to the simplified sellers use tax and allows the department to initiate monthly distributions of proceeds to counties, municipalities, and local boards of education.

The new tax is reported, collected, and administered in the same manner as the existing 8% simplified sellers use tax.

Effective date: September 1, 2025.