Ala. Code § 40-23-260 Program Established; Definitions; Informational Reports; Wholesale and Distributor Reporting Advisory Group.
40-23-260. Program Established; Definitions; Informational Reports; Wholesale and Distributor Reporting Advisory Group.
(a) This article shall establish the Wholesale to Retail Accountability Program or “WRAP”.
(b) For the purpose of this article, the following words shall have the following meanings:
(1) DEPARTMENT. The State Department of Revenue.
(2) LICENSED BEER OR WINE DISTRIBUTOR. A distributor, as licensed by the Alabama Alcoholic Beverage Control Board, selling or distributing beer or wine in this state.
(3) PERSON. Any individual, firm, partnership, association, corporation, limited liability company, receiver, trustee, or any other entity.
(4) RETAILER. A person or group of persons that have a relationship with each other as defined in Section 267(b) of the federal Internal Revenue Code whose primary business is the sale of tangible personal property at retail, including supporting operations such as warehousing, shipping, and storage of product, and who holds a license pursuant to Section 40-23-6 or 40-23-66.
(5) SELLER. A manufacturer, wholesaler, or distributor of beer, wine, or tobacco products who sells to a retailer in this state. The term also includes a wholesale club or warehouse club that sells tobacco under a membership.
(c) For the purpose of enforcing the collection of taxes levied by this chapter, on the sale of tangible personal property, every seller of tobacco products making sales within this state on which sales or use tax was not collected at the time of the sale and every beer or wine distributor, shall file informational reports with the department pursuant to subsection (d) as follows:
(1) Each licensed beer or wine distributor shall report sales of any beer or wine made to licensees for which an exemption from sales or use tax collection was claimed at the time of the sale. A licensed beer or wine distributor who donates beer or wine in the same manner as a retailer making a gift pursuant to Section 40-23-1(f) shall not be required to report such transaction under this article and is subject to the same exemption as a retailer making a gift pursuant to Section 40-23-1(f).
(2) Each seller of tobacco products, selling or distributing to retailers in this state, shall report sales of tobacco products for which exemptions from sales or use tax were claimed at the time of the sale.
(d) The informational report shall be filed in the following manner as provided by the department:
(1) The information provided in the report from each seller or distributor required in subdivision (1) of subsection (c) shall include seller’s legal name, seller’s address, seller’s beverage license number, if applicable, retailer’s name, retailer’s address, total dollar amount sold for the reporting period, invoice period, invoice date and applicable Alabama Alcoholic Beverage Control Board license number provided by the retailer.
(2) The information provided in the report from each seller or distributor required in subdivision (2) of subsection (c) shall include the seller’s legal name, seller’s address, retailer’s name, retailer’s address, total dollar amount sold for the reporting period, and applicable sales tax number provided by the retailer. The department shall allow the seller to file a consolidated report to meet the requirements of Section 40-25-16.1 and this article.
(3) The department shall provide an electronic filing mechanism for submission of the informational report to the department.
(4) The informational report shall be due on or before the 20th day of the month next succeeding the month in which a sale occurs. The first informational report due shall be for sales occurring on or after July 1, 2018.
(e) If a seller fails to properly file the required informational report in good faith with the department on or before the prescribed date, the following penalties shall apply on or after January 1, 2019, and each reporting period thereafter:
(1) The first violation of this section shall result in a written notice from the department. The notice shall advise the seller of the non-compliance and the penalty for future non-compliance if the required informational reports are not filed within 30 days from the written notice as provided herein.
(2) The second violation of this section shall result in a penalty not to exceed five hundred dollars ($500).
(3) The third and each subsequent violation of this section shall result in a penalty not to exceed one thousand dollars ($1,000).
(f) The department shall not initiate an automated assessment or automated audit based solely on data provided to the department in the informational reports.
(g) The informational report filed with the department shall be subject to the exchange of information provisions set forth in Section 40-2A-10 for municipal and county government agencies in this state. Effective January 1, 2022, the department shall be the sole source for municipal and county government agencies to obtain sales information that is required to be provided under this article to the department.
(h)(1) To ensure that taxpayers and industry have meaningful input into the informational reports, a Wholesale and Distributor Reporting Advisory Group is hereby established to make recommendations regarding the reporting of the informational reports required herein.
(2) The advisory group shall consist of the following individuals:
a. One representative from the Alabama Department of Revenue as designated by the Commissioner who shall serve as chair of the group.
b. One representative of county government, appointed by the Association of County Commissions of Alabama.
c. One representative of municipal government, appointed by the Alabama League of Municipalities.
d. One representative of the industry community, appointed by the Alabama Wholesale Beer Association.
e. One representative of the tobacco industry community, appointed by the Alabama Wholesale Distributors Association.
f. One representative of the retail community, appointed by the Alabama Retail Association.
g. One representative from the Alabama Alcoholic Beverage Control Board as designated by the Administrator.
h. One representative of the industry community, appointed by the Alabama Beer Association.
i. One representative of the industry community, appointed by the Alabama Grocers Association.
j. One representative of the industry community, appointed by the Petroleum and Convenience Marketers of Alabama.
k. One representative of the industry community, appointed by the Cigar Association of America, Inc.
l. Three additional industry representatives as designated by the Commissioner of Revenue.
(3) The designating and appointing authorities shall coordinate their designations and appointments to assure the advisory group is inclusive and reflects the racial, gender, geographic, urban, rural, and economic diversity of the state.
(4) a. The advisory group shall receive no compensation or reimbursement of expense from the state for serving on the committee.
b. The advisory group shall meet with the designee of the Commissioner of Revenue and with other employees of the department as the commissioner deems appropriate. The meeting times and place will be determined by the designee of the commissioner.
c. The role of the advisory group shall be limited to providing industry input and recommendations towards the filing of required informational reports. The group shall make no review of any other department matter beyond the recommendation of required reporting by this article.
(i) By no later than January 15, 2020, the department shall submit a report regarding the implementation, administration, achievements, and suggested improvements related to the WRAP Program to the Chairs of the House Ways and Means General Fund and Education Trust Fund Committees and the Senate Finance and Taxation General Fund and Education Trust Fund Committees and the Legislative Service Agency, Fiscal Division.
(Act 2017-294, §1.)