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In Alabama, the purchase of oil rollers and toner cartridges was exempt from sales tax. It was determined that the oil from the oil rollers and the toner from the toner cartridges were exempt component parts of printed material produced for sale. (Alabama Department of Revenue and Administrative Law Division, Docket No. S. 03-298, decided October 3, 2003)


Taxes that must now be filed electronically are State Sales, Use, Rental, or Leasing, Lodgings, Utility Gross Receipts, Utility Service Use, Mobile Telecommunications Service, Contractor's Gross Receipts, Pharmaceutical Providers, Alabama Nursing Home Privilege and State Administered Local Sales, Use, Rental, or leasing and Lodgings Taxes. Taxpayers are expected to use an electronic filing system available over the Internet. As an alternative, taxpayers can use the department's Telephone Voice Response system. A waiver may be obtained from the Tax Commissioner to file in another way in special circumstances only. (Reg. 810-1-6-.12, September 22, 2003.)


Effective August 1, 2003, in Alabama, an out-of-state vendor establishes nexus for state and local use tax purposes if that vendor and an in-state business with one or more Alabama locations are related parties and (1) share the use of a name (or use a substantially similar name), trademark, trade name, or goodwill to develop, promote, or maintain sales, (2) provide payments for service to each other either for all or part of the volume or value of sales, (3) share or coordinate business plans, or (4) if services related to developing, promoting, or maintaining the in-state market are provided to the out-of-state business by the in-state business. (Ch. 390, H.B. 650, Laws 2003, effected as noted above)


Many panelists and lawmakers have been in discussions recently to decide what the implications of trying to establish an Internet tax will have on electronic commerce. A push for the enactment of the Internet Nondiscrimination Act (H.R. 49) has been started as there is some concern that imposing an internet tax could hinder the use of the internet for commerce purposes. The Internet Tax Freedom Act, set in motion in 1998, will expire in November of 2003 and with the Nondiscrimination Act, there is an interest in preventing unfair tax treatment of Internet sales, not necessarily preventing the online sales tax as a whole. (House Judiciary Subcommittee on Commercial and Administrative Law Hearing, Washington, April 1, 2003, and interview with Harley T. Duncan following hearing.)


Under this act, the taxable definition of telecommunication service has been amended to include mobile telecommunications services. The provisions of the federal Mobile Telecommunications Sourcing Act (P.L. 106-252), effective August 1, 2002, states that a customer's home service provider will be subject to the states sales and use tax regardless of where transmissions originate or terminate within the home service provider's licensed service area. This act determines that mobile communications services are taxable at the location of the customer's "primary place of use". This is the residential or business address of the customer, which must be located in the service provider's licensed service area.
Forty-nine of the fifty states, including the District of Columbia, have enacted legislation which complies with the MTSA. Montana was the only state which chose not to conform. The governor vetoed the legislation to avoid raising taxes in the state. Maryland and West Virginia used non-legislative action to comply. West Virginia did not have a mobile telecommunications tax so they reorganized their current usage fee structure to accommodate for accordance with the Act.

Alabama H.B. 62, effective January 25, 2002.
Alaska H.B. 355, effective August 1, 2002 (TaxDay 07-08-02 AK Item #S.7).
Arizona H.B. 2542, effective August 1, 2002.
Arkansas S.B. 309, effective August 1, 2002.
California S.B. 896, effective Jan 1, 2002, adopted for services billed after July 31, 2002.
Colorado H.B. 1208, effective August 1, 2002.
Connecticut H.B. 3885, effective August 1, 2002.
Delaware H.B. 492, effective August 1, 2002.
District of Columbia DCA 14-755, effective July 23, 2002.
Florida S.B. 1338, effective August 1, 2002.
Georgia H.B. 1443, effective May 14, 2002.
Hawaii H.B. 1684, effective June 28, 2002.
Idaho S.B. 1477, effective August 1, 2002.
Illinois S.B. 88, effective August 1, 2002.
Indiana S.B. 52, effective August 1, 2002.
Iowa H.F. 736, effective July 1, 2001.
Kansas S.B. 372, effective August 1, 2002.
Kentucky H.B. 634, effective August 1, 2002.
Louisiana H.B. 1391, effective August 2, 2002.
Maine S.B. 667, effective April 1, 2002.
Maryland Reg. Sec., proposed August 23, 2002.
Massachusetts H.B. 5250, August 1, 2002.
Michigan S.B. 824, effective June 21, 2002. (TaxDay 06/27/2002 MI News- #S.5)
Minnesota H.F. 1a, effective August 1, 2001.
Mississippi S.B. 3120, effective August 1, 2002.
Missouri H.B. 1890, effective August 1, 2002.
Nebraska L.B. 947, effective August 1, 2002.
Nevada S.B. 563, effect August 1, 2002.
New Hampshire Ch. 219 (H.B. 1451), effective August 1, 2002.
New Jersey A.B. 2513, effective July 1, 2002.
New Mexico H.B. 299, effective August 1, 2002.
New York H.B. 9762, effective August 2, 2002.
North Carolina H.B. 1521, effective August 1, 2002.
North Dakota H.B. 1479, effective August 1, 2002.
Ohio S.B. 143, effective August 1, 2002.
Oklahoma H.B. 1081, effective August 1, 2002.
Pennsylvania H.B. 1848, effective August 1, 2002 (TaxDay 07-02-02 Item #S.13)
Rhode Island H.B. 7732, effective August 2, 2002.
South Carolina H.B. 3885, effective September 1, 2001
South Dakota S.B. 36, effective August 1, 2002.
Tennessee S.B. 2812, effective May 2, 2002.
Texas S.B. 1497, effective August 1, 2002.
Utah Ch. 320 (S.B. 153), effective July 1, 2002.
Vermont H.B. 771, effective June 21, 2002.
Virginia S.B. 122, effective August 1, 2002.
Washington S.B. 6539, effective August 1, 2002.
West Virginia see above
Wisconsin A.B. 1, effective August 1, 2002.
Wyoming H.B. 139, effective August 1, 2002.



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