Alabama – Local Nexus Rule Repealed

SALT Report 2965 – The Alabama Department of Revenue has repealed Rule 810-6-3-.51 – Municipal Sales and Use Taxes and Gross Receipts Taxes.  The Department stated that they repealed this local nexus rule because it does not adequately convey the situations that would require a seller to collect and pay local taxes.

The Department intends to replace the repealed rule with Proposed Rule 810-6-5-.04.02, Seller’s Responsibility to Collect County and Municipal Sales and Use Taxes.  If adopted, the new rule will apply to all transactions that occur on or after January 1, 2014.

These provisions regarding Rule 810-6-3-.51 are effective September 5, 2013 and will become operative on January 1, 2014.

For Further Information

Alabama Department of Revenue – Rule 810-6-3-.51