Alabama Updates Amnesty Provisions for Eligible Sellers in Simplified Sellers Use Tax Remittance Program

Alabama has updated the amnesty and class action provisions for eligible sellers participating in state’s Simplified Sellers Use Tax Remittance Program. As of June 5, 2019, the state will now grant amnesty to eligible sellers in the program for any uncollected remote use tax that may have been due on sales made to Alabama purchasers for all periods preceding October 1, 2019. In addition to the amnesty provision, no class action can be brought against an eligible seller on behalf of customers for an overpayment of simplified sellers use tax.

Amnesty is provided to any eligible seller who applies and is accepted to participate in the Simplified Seller’s Use Tax (SSUT) program by the Department. Amnesty will preclude any assessment of uncollected simplified sellers use tax and any accompanying penalties or interest for sales made for all periods prior to the effective date of the eligible seller’s participation in the program. Amnesty isn’t available to any eligible seller who has received notice of an audit and the audit is not yet resolved.  Amnesty only applies to retailers responsible for collection of the tax and not for purchasers subject to consumer’s use tax.

A seller eligible for the Simplified Sellers Use Tax Remittance Program is one that sells tangible personal property or a service into Alabama from an inventory or location outside the state but does not have a physical presence in Alabama. Accepted sellers are allowed to collect, report, and remit an eight percent flat rate sellers use tax on all sales made into Alabama. There is no separate application for the amnesty. Registration in the program prior to October 1, 2019 will qualify the seller for the amnesty. It is recommended that any seller that qualifies for the SSUT program that may have had nexus due to any physical or economic nexus apply before October 1, 2019 to secure the amnesty. (H.B. 183, Laws 2019, effective June 5, 2019)

Posted on July 17, 2019