HB364INTRODUCED
Page 0
HB364
KHHTTAU-1
By Representatives Lomax, Shirey, Almond
RFD: Ways and Means General Fund
First Read: 27-Feb-25
1
2
3
4
5 KHHTTAU-1 02/26/2025 KHF (L)KHF 2025-1058
Page 1
First Read: 27-Feb-25
SYNOPSIS:
Under existing law, marketplace facilitators
that contract with marketplace sellers to facilitate
the sale of the marketplace seller's products through a
physical or electronic marketplace must register with
the Department of Revenue to collect the simplified
sellers use tax (SSUT) on retail sales made through the
marketplace facilitator's marketplace by or on behalf
of the marketplace seller for delivery in Alabama.
This bill would provide that local delivery
services are not marketplace facilitators subject to
the simplified sellers use tax remittance program.
A BILL
TO BE ENTITLED
AN ACT
Relating to the simplified sellers use tax; to amend
Section 40-23-199.2, Code of Alabama 1975, to exclude local
delivery services from the definition of marketplace
facilitator; and to provide that local delivery service
transactions are outside the simplified sellers use tax
remittance program, but subject to state and local sales and
use taxes.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28 HB364 INTRODUCED
Page 2
use taxes.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 40-23-199.2, Code of Alabama 1975,
is amended as follows:
"ยง40-23-199.2
(a) For the purpose of this Act 2018-539 this section,
the following terms shall have the respective meanings
ascribed to them :
(1) DEPARTMENT. The Alabama Department of Revenue.
(2) MARKETPLACE FACILITATOR. A person that contracts
with marketplace sellers to facilitate for a consideration,
regardless of whether deducted as fees from the transaction,
the sale of the marketplace seller's products through a
physical or electronic marketplace operated by a person, and
engages:
a. Either directly or indirectly, through one or more
affiliated persons in any of the following:
1. Transmitting or otherwise communicating the offer or
acceptance between the purchaser and marketplace seller;
2. Owning or operating the infrastructure, electronic
or physical, or technology that brings purchasers and
marketplace sellers together;
3. Providing a virtual currency that purchasers are
allowed or required to use to purchase products from the
marketplace seller; or
4. Software development or research and development
activities related to any of the activities described in
paragraph b. if such activities are directly related to a
physical or electronic marketplace operated by a person or an
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56 HB364 INTRODUCED
Page 3
physical or electronic marketplace operated by a person or an
affiliated person ,; and
b. In any of the following activities with respect to
the marketplace seller's products:
1. Payment processing services;
2. Fulfillment or storage services;
3. Listing products for sale;
4. Setting prices;
5. Branding sales as those of the marketplace
facilitator;
6. Order taking;
7. Advertising or promotion; or
8. Providing customer service or accepting or assisting
with returns or exchanges.
c. The term "marketplace facilitator" does not include
a person that picks up goods from Alabama Retail Sellers and
delivers them using couriers, or persons who deliver goods
using a personal means of transportation, including a car or
bicycle, or other equivalent means of transportation, or
maintains a website or mobile application used primarily to
facilitate the delivery or sale of goods by Alabama Retail
Sellers, such as restaurants, grocery stores, pharmacies, and
other businesses; provided, that the Alabama Retail Seller:
1. Has a business address in the State of Alabama for
the purpose of making retail sales; or
2. Is affiliated with one or more Alabama Retail
Sellers and is required to collect and remit sales or use tax
pursuant to Section 40-23-190.
d. Sales of goods by persons described in paragraph
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84 HB364 INTRODUCED
Page 4
d. Sales of goods by persons described in paragraph
(a)(2)c. close where the goods are picked up at the location
of the Alabama Retail Seller, who shall collect and remit
state sales taxes under Title 40 Chapter 23 Article 2 and
local sales taxes under any local law, municipal ordinance, or
county ordinance enacted under Section 40-12-4.
(3) MARKETPLACE SELLER. A seller that is not a related
party, as prescribed in Section 40-23-190(c), to a marketplace
facilitator and that makes sales through any physical or
electronic marketplaces operated by a marketplace facilitator.
(4) PERSON. As defined in Section 40-23-1 (a)(1).
(5) PURCHASER. A person who purchases or contracts to
purchase tangible personal property as defined in Section
40-12-220.
(6) QUALIFYING AMOUNT. Two hundred and fifty thousand
dollars ($250,000) or an amount as otherwise prescribed by the
department.
(7) RETAIL SALE. As defined in Section 40-23-1 (a)(10),
other than sales of motor vehicles as defined in Section
40-12-240.
(8) SELLER. An individual, trust, estate, fiduciary,
partnership, limited liability company, limited liability
partnership, corporation, or other legal entity.
(9) SIMPLIFIED SELLERS USE TAX. The tax as levied under
Section 40-23-193.
(10) STATE. The State of Alabama.
(b) By no later than January 1, 2019,
marketplaceMarketplace facilitators must either register with
the department to collect and remit simplified sellers use tax
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112 HB364 INTRODUCED
Page 5
the department to collect and remit simplified sellers use tax
on retail sales made through the marketplace facilitator's
marketplace by or on behalf of a marketplace seller that are
delivered in Alabama, whether by the marketplace facilitator
or another person, or report such retail sales and provide
customer notifications pursuant to subsection (m). This
subsection shall apply to any marketplace facilitator that has
more than the qualifying amount in retail sales in Alabama for
the preceding 12 months. Such retail sales shall include those
made directly by the marketplace facilitator and shall also
include those retail sales made by marketplace sellers through
the marketplace facilitator's marketplace. The collection and
reporting requirements of this subsection shall not apply to
retail sales other than those made through a marketplace
facilitator's marketplace.
(c) Marketplace facilitators that collect simplified
sellers use tax under this section shall report and remit the
tax in accordance with the provisions of Section 40-23-193 and
shall maintain records of all sales delivered to a location in
Alabama, including copies of invoices showing the purchaser,
address, purchase amount, and simplified sellers use tax
collected. Such records shall be made available for review and
inspection upon request by the department.
(d) Marketplace facilitators who properly collect and
then remit to the department in a timely manner simplified
sellers use tax on sales in accordance with the provisions of
this section by or on behalf of marketplace sellers shall be
eligible for the discount provided under Section 40-23-194.
(e) The collection and remittance of simplified sellers
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140 HB364 INTRODUCED
Page 6
(e) The collection and remittance of simplified sellers
use tax relieves the marketplace facilitator, the marketplace
seller, and the purchaser from any additional state or local
sales and use taxes on the transactions for which simplified
sellers use tax was collected and remitted.
(f) Marketplace facilitators that collect simplified
sellers use tax shall not be subject to audit or review by any
Alabama locality for simplified sellers use tax. Sales by
marketplace sellers for which simplified sellers use tax has
been collected shall not be subject to audit or review by an
Alabama locality for simplified sellers use tax. This
exclusion shall not preclude an Alabama locality from auditing
or reviewing any other sales by a marketplace seller for which
sales or use tax would be due.
(g) Marketplace sellers for whom marketplace
facilitators collect and remit simplified sellers use taxtaxes
in accordance with the provisions of this section on all sales
made by or on behalf of the marketplace seller that are
delivered in Alabama shall be granted the continued
participation and amnesty protections provided for eligible
sellers under Sections 40-23-198 and 40-23-199.
(h) The marketplace facilitator shall provide the
purchaser with a statement or invoice showing that the
simplified sellers use tax was collected and shall be remitted
on the purchaser's behalf. The statement shall be in a manner
prescribed by the department.
(i) No class action may be brought against a
marketplace facilitator in any court of this state on behalf
of customers for an overpayment of simplified sellers use tax
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168 HB364 INTRODUCED
Page 7
of customers for an overpayment of simplified sellers use tax
collected and remitted on sales facilitated by the marketplace
facilitator.
(j) Any taxpayer who remits simplified sellers use tax
pursuant to this section shall be entitled to refunds or
credits to the same extent and in the same manner provided for
in Section 40-23-196 for taxes collected and remitted through
the Simplified Sellers Use Tax Remittance Program.
(k) Marketplace facilitators shall be subject to the
penalty provisions and procedures of Section 40-2A-11 and
reporting requirements of Section 40-2-11(7) (b)b..
(l) The distribution of simplified sellers use tax
remitted by marketplace facilitators shall be made in
accordance with Sections 40-23-197 and 40-23-197.1.
(m) Effective January 1, 2019, any Any marketplace
facilitator who does not collect and remit sales, use, or
simplified sellers use tax on Alabama retail sale transactions
of qualifying amounts shall be required to report such retail
sales and provide customer notifications, within
constitutional limitations, pursuant to Section
40-2-11(7)(b)b. and rules promulgatedadopted thereunder.
(n) The department may adopt , promulgate, and enforce
reasonable rules and regulations for the administration and
enforcement of Act 2018-539this section."
Section 2. This act shall become effective on October
1, 2025.
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193