Alabama Enacts Marketplace Nexus Provisions

Alabama has enacted legislation containing marketplace nexus provisions. By no later than January 1, 2019, marketplace facilitators with sales into Alabama made through the marketplace of $250,000 or more for the preceding 12 months, must either:

  • Register with the Alabama Department of Revenue (DOR) 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, within constitutional limitations. Notice and Reporting requirements were included in Senate Bill 86 (Act 2017-82) effective July 1, 2017.

Such retail sales shall include those made directly by the marketplace facilitator as well as retail sales made by marketplace sellers through the marketplace facilitator’s marketplace. The collection and reporting requirements of this provision will not apply to retail sales other than those made through a marketplace facilitator’s marketplace. Marketplace facilitators will be required to 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 DOR. No class action may be brought against a marketplace facilitator in any Alabama court on behalf of customers for an overpayment of simplified sellers use tax collected and remitted on sales facilitated by the marketplace facilitator. Marketplace facilitators will be subject to the penalty provisions and procedures of Alabama Section 40-2A-11. (Act 2018-539 (H.B. 470), Laws 2018; Notice, Alabama Department of Revenue, May 1, 2018)

Posted on May 13, 2018