Alabama – Legislation Creates Electronic Single Point of Filing Program

SALT Report 1505 – Alabama Governor Robert Bentley recently signed legislation that changes the way businesses file and pay their taxes in the state. Under existing law, businesses with locations in more than one city or county must file separate tax returns with each of those cities and counties as well as the Alabama Department of Revenue.  However, Senate Bill 459 creates “…a streamlined, statewide electronic filing and remittance system for sales, use, lease and rental taxes in Alabama” thereby reducing the burden of filing separate returns.
The system will be known as the Optional Network Election for Single Point Online Transactions or “One Spot.”  The ONE SPOT system will allow taxpayers to file an electronic return for state sales, use, leasing or rental taxes and for each local taxing jurisdiction using one return, making one payment, and in one place.  ONE SPOT will contain all the information that is normally included in the multiple jurisdictional tax returns as well as any information required by local taxing jurisdictions.
Any taxpayer utilizing the ONE SPOT system for filing an electronic tax return for a local taxing jurisdiction will be required to remit payment through the ONE SPOT system or through another electronic payment method accepted by the local taxing jurisdiction or its designee.
Penalties and interest will be assessed according to state law and the rules of the Department, with the exception of local taxing jurisdictions that elect to apply interest at the rate of 1% per month. These local taxing jurisdictions must notify the department of their intent to charge interest and follow certain guidelines set forth in the bill.
Additionally, SB 459 mandates that all local taxing jurisdictions utilize the ONE SPOT system for tax returns and remittances.  However, taxpayers are not required to use ONE SPOT.  In fact, they can use the new system or continue to file and pay the way they are now.
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