Alabama 2025 Regular Session

Alabama House Bill HB364

Filed/Read First Time

Introduced

2/27/25

Refer

2/27/25

Caption

Simplified sellers use tax, marketplace facilitator further defined to exclude local delivery services

Impact

The impact of HB364 represents a pivotal shift in how local delivery services are treated under Alabama tax law. By distinguishing between marketplace facilitators and local delivery services, the bill provides clearer guidelines for businesses engaged in delivery operations. For businesses that rely on local delivery services to fulfill their sales, this change could reduce their tax burden, as they would no longer have to navigate the complexities associated with SSUT compliance. However, local delivery services will still need to collect and remit the standard sales taxes, ensuring that the revenue flows to state and local governments.

Summary

House Bill 364 aims to refine the existing definition of marketplace facilitators within Alabama's tax code, specifically regarding the collection of the Simplified Sellers Use Tax (SSUT). The bill proposes to exclude local delivery services from being classified as marketplace facilitators. This change is significant as it means that transactions involving local delivery services will not be subject to SSUT, although they will still be liable for state and local sales taxes. The overarching goal is to clarify the tax responsibilities of various businesses operating under the evolving landscape of e-commerce and local retail.

Contention

The bill has sparked debate among stakeholders in the retail and delivery sectors. Proponents argue that excluding local delivery services from the SSUT framework allows for a more accurate representation of the delivery landscape in Alabama, fostering a more equitable tax system where local businesses are not unfairly burdened with additional tax obligations. Conversely, some critics express concerns that this exclusion could create loopholes that might be exploited, resulting in lost revenue for the state. Additionally, there are apprehensions about how these changes might affect the tax landscape for online retailers and their logistics partners in Alabama.

Companion Bills

No companion bills found.

Previously Filed As

AL HB17

Simplified sellers use tax, rate increased, distribution of proceeds.

AL HB258

Simplified Sellers Use Tax; to levy an additional amount based on current sales tax rates to be distributed to municipalities and counties.

AL SB273

Sales and use tax, simplified sellers use tax, municipalities, distribution to be adjusted based on population adjusted for annexations annually based on report of U.S. Secretary of Commerce

AL HB225

Definition of child; embryo outside a human uterus excluded from definition.

AL HB466

Pike County, further provides for sales and use taxes

AL HB104

Crimes and offenses, further provides for the definition of "sexual conduct"

AL HB335

Tax lien auctions and sales; auctions and fees further provided for; tax lien redemptions; tax lien price further provided for; redemption of tax lien further provided for; prohibit entry on land; penalties established

AL SB260

AL HB195

Public K-12 schools, sex education curriculum further provided for, sexual risk avoidance established as exclusive sex education curriculum, local boards of education prohibited from using services of org. that endorses other approaches to sex education, parent or guardian notice of sex ed curriculum required, cause of action for violations established

AL SB196

Civil practice; legal service liability actions, further provided

Similar Bills

AL HB318

Commerce, online marketplaces, certain disclosures required to be made by certain high-volume third-party sellers, consumer protections provided

AL HB258

Simplified Sellers Use Tax; to levy an additional amount based on current sales tax rates to be distributed to municipalities and counties.

UT SB0047

Sales and Use Tax Remittance Amendments

UT HB0017

Sales and Use Tax Revisions

AL SB194

Commerce, online marketplaces, certain disclosures required to be made by certain high-volume third-party sellers, consumer protections provided

AL HB36

Simplified sellers use tax, additional tax levied, distribution of proceeds provided

MN HF5

Imposition and allocation of certain taxes modified, tax analysis required, transportation funding impacts analysis required, retail delivery fee repealed, unlimited Social Security subtraction provided, previous appropriation and transfer modified, reports required, money transferred, and money appropriated.

HI SB989

Relating To Economic Development.