Alabama – ADOR Prospective Application Of Economic Nexus Statute Effective October 1, 2018

The Alabama DOR passed an economic nexus statute with a $250,000 small seller exception (South Dakota’s was $100,000). Although the law was technically effective January 1, 2016 the department is making a prospective transition beginning October 1, 2018.

“The Department of Revenue’s existing “economic nexus” rule 810-6-2-.90.03, which took effect in January 2016, will be applied prospectively for sales made on or after October 1, 2018. While this rule technically was effective January 1, 2016, its validity was in question pending the outcome of the Wayfair decision. Because Wayfair removed the constitutional impediments to the rule, it will be enforced going forward. Remote sellers with annual Alabama sales in excess of the rule’s $250,000 small seller exception should register for the Alabama Simplified Sellers Use Tax Program (SSUT) and begin collecting no later than October 1, 2018.”

For further information:

ADOR Announces Sales and Use Tax Guidance for Online Sellers