Alabama – Online Sales Tax Brought In Additional $12 Million During Holidays

An increase in online sales tax collections paid off for Alabama during the busy holiday shopping period.

Remote retailers brought in $12 million more in new tax revenue to the state during the 2018 holiday season compared to the same period in 2017, according to the Alabama Retail Association.

Sales reflected in Alabama’s Simplified Sellers Use Tax – the 8 percent flat tax assessed on online sales – jumped more than 72 percent, or $154.5 million in November and December 2018, from $213.8 million to $368.3 million.

Alabama began widespread sales tax collection from online merchants on Oct. 1, 2018 after a Supreme Court ruling that allowed assessments on businesses even if they don’t have a physical presence in the state. Remote retailers with in-state sales of $200,000 or more now must register with the Alabama Department of Revenue then collect and remit sales taxes.

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by Leada gore
february 13, 2019