§ 40-23-192 — Simplified Sellers Use Tax Remittance Program

Alabama § 40-23-192

• Jurisdiction: Alabama
• Title 40: Revenue and Taxation
• Ch. 23: Sales and Use Taxes
• Art. 6: Tax on Remote Sellers
• Div. 3: Conditions for Remote Entity Nexus
• Part 2: Simplified Seller Use Tax Remittance Act

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(a) There is hereby established The Simplified Sellers Use Tax Remittance Program designed to allow an eligible seller who participates in the program to collect, report, and remit the simplified sellers use tax authorized herein in lieu of the sales or use taxes otherwise due by or on behalf of Alabama customers who have purchased items from the eligible seller that were shipped or otherwise delivered into Alabama by the eligible seller. Participation in the program shall be by election of the eligible seller and only those eligible sellers accepted into the program as set out herein shall collect and remit the simplified sellers use tax. Participation in the program shall not be construed as subjecting an eligible seller to franchise, income, occupation, or any other type of taxes or licensing requirements levied or imposed by the state of Alabama or any locality.
(b) The program shall be administered by the department, which pursuant to this part, shall develop and make available to the eligible seller an easily accessible, online system in which to collect, report, and remit the simplified sellers use tax. Participants in the program shall be required to collect, report, and remit the simplified sellers use tax for all sales delivered into the state as long as remaining a participant in the program. Eligible sellers may continue in the program as long as they comply with all provisions of this part and procedures adopted by the department for participation in the program.
(c) In order to participate in the program, an eligible seller shall make application with the department on a form designed by the department for that purpose. The application shall require, at a minimum, that the eligible seller:
(1) Certifies that he or she is an eligible seller as defined herein.
(2) Agrees to collect, report, and remit the simplified sellers use tax for all sales delivered into the state as long as he or she remains a participant in the program.
(3) Agrees to provide the department with information related to sales to Alabama customers as required by this part or requested by the department.
(4) Agrees to comply with all program reporting requirements established under program procedures.
Any applicant who falsely certifies on his or her application that he or she is an eligible seller with the State of Alabama shall be subject to the negligence and/or fraud penalties under procedures found in Section 40-2A-11.
(d) The department shall review all applications for participation, and where an applicant is determined to satisfy requirements to participate in the program, shall establish a simplified sellers use tax account for the eligible seller which will allow the eligible seller to report and remit all simplified sellers use tax collected pursuant to this part.
(e) A participating eligible seller shall be removed from the program if:
(1) He or she substantially fails to collect, report, and remit simplified sellers use taxes.
(2) He or she fails to submit required reports on a timely basis.
(3) Upon a determination that the seller is no longer an eligible seller, as defined by this part.
(4) There is any other finding by the department that the participant is not in compliance with the terms authorizing participation in the program.
Any participant who fails to report that he or she is no longer eligible for participation in the program or falsely certifies on any report that he or she is eligible shall be subject to the negligence and/or fraud penalties under procedures found in Section 40-2A-11. Removal from the program or assessment of the fraud or negligence penalty shall be subject to appeal rights and procedures established in this title.

Legislative History

(Act 2015-448, §1.)