Alabama – Business’s Obligation to Collect and Remit Local Jurisdiction Sales and Use Taxes

SALT Report 3138 – Local nexus.  The new provision is limited to describing a business obligation “to collect and remit a local jurisdiction’s sales or use tax whether or not the business has a physical location in the state.”  Under the new provision, the obligation to collect tax does not obligate the business to “file a return for or pay any other local tax or fee.”  Sourcing issues are not addressed with respect to the “determination of where tax is due or in which local jurisdiction tax is due.”

The new rule applies to all transactions occurring after January 1, 2014.

For Further Information:              

Rule 810-6-5-.04.02 – Seller’s Responsibility to Collect County and Municipal Sales and Use Taxes. (New Rule)