HB36INTRODUCED
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HB36
AUUPSQ7-1
By Representative England
RFD: Ways and Means General Fund
First Read: 04-Feb-25
PFD: 29-Aug-24
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6 AUUPSQ7-1 08/28/2024 KHF (F)KHF 2024-2431
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PFD: 29-Aug-24
SYNOPSIS:
Under existing law, the state levies a
simplified sellers use tax on sales of tangible
personal property or a service by an eligible seller or
marketplace facilitator participating in the program.
The current tax rate is eight percent of the sale
price, and the proceeds of the tax are distributed 50
percent to the state and 50 percent to the local
governments of the state.
This bill would levy an additional simplified
sellers use tax and provide for the distribution of the
proceeds from the additional tax. This bill would also
make nonsubstantive, technical revisions to existing
code language.
A BILL
TO BE ENTITLED
AN ACT
Relating to the simplified sellers use tax; to amend
Sections 40-23-193, 40-23-197, and 40-23-197.1, Code of
Alabama 1975, to make nonsubstantive, technical revisions to
update existing code language to current style; to add
Sections 40-23-193.1 and 40-23-197.2 to the Code of Alabama
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Sections 40-23-193.1 and 40-23-197.2 to the Code of Alabama
1975, to levy an additional simplified sellers use tax and
provide for the distribution of the proceeds.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Sections 40-23-193, 40-23-197, and
40-23-197.1, Code of Alabama 1975, are amended to read as
follows:
"§40-23-193
(a) The simplified sellers use tax due under the
programthis section is eight percent of the sales price on any
tangible personal property sold or delivered into Alabama by
an eligible seller participating in the program. The
collection and remittance of simplified sellers use tax
relieves the eligible seller and the purchaser from any
additional state or local sales and use taxes on the
transaction.
(b) The simplified sellers use tax collected by the
eligible seller, at the rate of eight percent, shall be
electronically reported in the manner prescribed by the
department on or before the 20th day of the month next
succeeding the month in which the tax accrues. The eligible
seller shall remit the tax at the required rate or the amount
of the tax collected, whichever is greater. The required
monthly reporting from the eligible seller shall only include
statewide totals of the simplified sellers use taxes collected
and remitted, and shall not require information related to the
location of purchasers or amount of sales into a specific
locality. The department may not require an eligible seller to
report and remit the simplified sellers use tax more
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report and remit the simplified sellers use tax more
frequently than is required for other sellers.
(c) NoExcept as otherwise provided in this division, no
eligible seller shall be required to collect the tax at a rate
greater than eight percent, regardless of the combined actual
tax rates that may otherwise be applicable. Additionally, no
sales for which the simplified sellers use tax is collected
shall be subject to any additional sales or use tax from any
locality levying a sales or use tax with respect to the
purchase or use of the property, regardless of the actual tax
rate that might have otherwise been applicable.
(d) The participating eligible seller shall collect the
tax on all purchases delivered into Alabama unless the
purchaser furnishes the eligible seller with a valid exemption
certificate, sales tax license, or direct pay permit issued by
the department. The eligible seller shall retain all exemption
certificates, sales tax licenses, or direct pay permits in its
files, or in such other manner as directed by the department.
(e) The eligible seller shall provide the purchaser
with a statement or invoice showing that the simplified
sellers use tax was collected and is to be remitted on the
purchaser’s behalf. The statement shall be in a manner
prescribed by the department.
(f) The simplified sellers use tax levied under this
section shall not be collected and remitted in lieu of the
sales and use tax collected by a licensing official pursuant
to Section 40-23-104."
"§40-23-197
(a) The proceeds offrom the eight percent simplified
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(a) The proceeds offrom the eight percent simplified
sellers use tax paid pursuant to this partSection 40-23-193
shall be appropriated to the department, which shall retain
the amount necessary to fund the administrative costs of
implementing and operating the program and to cover the
amounts paid for refunds authorized in Section 40-23-196. The
balance of the amounts collected shall be distributed as
follows:
(1) Fifty50 percent to the State Treasury and allocated
75 percent to the State General Fund and 25 percent to the
Education Trust Fund.
(2) Twenty-five percent to each county in the state on
a prorated basis according to population as determined in the
most recent federal census prior to the distribution.
(3) Twenty-five percent of funds to be distributed to
each municipality in the state on a prorated basis according
to population as determined in the most recent federal census
prior to the distribution.
(b) Effective for tax periods beginning on or after
January 1, 2019, the net proceeds after the distribution
provided in subdivision (1) of subsection (a) shall be . The
remaining 50 percent of the net proceeds shall be distributed
60 percent to each municipality in the state on a basis of the
ratio of the population of each municipality to the total
population of all municipalities in the state as determined in
the most recent federal census prior to distribution and 40
percent to each county in the state, and deposited into the
general fund of the respective county commission, on a basis
of the ratio of the population of each county to the total
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of the ratio of the population of each county to the total
population of all counties in the state as determined in the
most recent federal census prior to the distribution.
(c) The distribution of the proceeds from the
simplified sellers use tax paid to counties and municipalities
shall occur quarterly in a manner prescribed by the
department."
"§40-23-197.1
Notwithstanding the provisions of Section 40-23-197,
the department may initiate monthly distributions of the
proceeds from the simplified sellers use tax paid to counties ,
and municipalities, and local boards of education ."
Section 2. Sections 40-23-193.1 and 40-23-197.2, are
added to Chapter 23 of Title 40, Code of Alabama 1975, to read
as follows:
§40-23-193.1
(a) In addition to the tax levied under Section
40-23-193, there is levied an additional simplified sellers
use tax of one and twenty-five hundredths percent on the sales
price on any tangible personal property sold or delivered into
Alabama by an eligible seller participating in the program or
the sale of which is facilitated by a marketplace facilitator,
as defined by Section 40-23-199.2.
(b) The tax levied in this section shall be reported,
collected, and administered in the same manner as the tax
levied in Section 40-23-193.
§40-23-197.2
All proceeds from the tax levied by Section 40-23-193.1
shall be distributed to local boards of education on the basis
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shall be distributed to local boards of education on the basis
of the average daily membership of the preceding school year
in public schools.
Section 3. This act shall become effective on September
1, 2025.
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