Delegation to Discuss Sales and Use Tax Collection from Remote Sales.

Ala. Code tit. 40, ch. 23, art. 6, div. 2

in effect

Ala. Code § 40-23-170 Legislative Findings.

40-23-170. Legislative Findings. The Legislature finds that the State of Alabama should participate in negotiations with other states to simplify and modernize tax administration in order to substantially reduce the burden of tax compliance for all sellers, to reduce the costs of the administration, and to provide a means by which sales and use taxes may be levied and collected from those remote sellers located outside of this state which deliver inside this state items sold through catalogs, Internet, and other means. (Act 2002-418, p. 1068, §1.)

Ala. Code § 40-23-171 Definitions.

40-23-171. Definitions. As used in this division, the following terms shall have the following meanings: (1) AGREEMENT. An interstate agreement for simplification and uniformity of taxation among member states in order to reduce the burden of tax compliance for sellers and for all types of commerce and to provide a means by which sales and use taxes may be collected from remote sellers. (2) REMOTE SELLER. An individual, trust, estate, fiduciary, partnership, limited liability company, limited liability partnership, corporation, or other similar legal entity that sells tangible personal property or a service, but does not have nexus in this state. (3) SALES AND USE TAXES. Sales and use taxes and gross receipts taxes in the nature of a sales tax imposed pursuant to Alabama law. (4) STATE. A state of the United States and the District of Columbia. (Act 2002-418, p. 1068, §2.)

Ala. Code § 40-23-172 Delegates for Participation in Multistate Discussions.

40-23-172. Delegates for Participation in Multistate Discussions. (a) There is created a delegation to participate in multistate discussions regarding the simplification and modernization of tax administration. Delegates shall be appointed as follows: (1) One representative of municipal government appointed by the Alabama League of Municipalities. (2) One representative of county government appointed by the Association of County Commissions of Alabama. (3) The Commissioner of the Alabama Department of Revenue or his or her designee. (4) One representative of the retail community appointed by the Alabama Retail Association. (5) One representative of the accounting profession appointed by the Alabama Society of Certified Public Accountants. (b) Delegates shall serve at the pleasure of the appointing authority. Delegates shall be reimbursed by the State of Alabama for all reasonable and necessary expenses in the discharge of their duties. (c) Delegates shall, by majority vote of the membership, make recommendations to the Legislature and to the Governor. (d) The delegation shall reflect the racial and ethnic diversity of the state. (Act 2002-418, p. 1068, §3.)

Ala. Code § 40-23-173 Duties of Delegates; Agreement.

40-23-173. Duties of Delegates; Agreement. (a) Delegates shall enter into multistate discussions on behalf of the State of Alabama to consider whether the state should enter into an agreement with one or more states to do the following: (1) Simplify and modernize tax administration in order to substantially reduce the burden of tax compliance for sellers and for all types of commerce and to provide a means by which sales and use taxes may be collected from remote sellers. (2) Establish requirements for multistate sellers. (b) The agreement may provide a mechanism among the member states to establish and maintain a cooperative, simplified system for the application and administration of sales and use taxes from remote sellers under the duly adopted law of each state. No law of this state, nor the application thereof, may be declared invalid as to any person or circumstance on the ground that the provision or application is inconsistent with the agreement. No provision of this division, in whole or in part, invalidates or amends any provision of law in Alabama. Implementation of any condition of any agreement, whether adopted before, at, or after membership of this state in the agreement, must be made by law enacted by the Legislature of this state. (Act 2002-418, p. 1068, §4.)

Ala. Code § 40-23-174 Distribution of Proceeds.

40-23-174. Distribution of Proceeds. (a) Should the enactment of a national agreement for the collection of sales and use taxes from remote sellers establish a single national tax rate on such remote sales or should the agreement provide for the State of Alabama to establish a single statewide rate on such remote sales, the proceeds shall be distributed as follows: (1) One-half of such proceeds shall be distributed to the State of Alabama of which 75% shall be deposited into the General Fund, and 25% shall be deposited into the Education Trust Fund. (2) One-quarter shall be distributed to the governing body of the municipality in which the delivery is made, if the delivery is made into a municipality. (3) The remainder shall be distributed to the county governing body in the county in which the delivery is made. (b) The tax proceeds distributed to a municipality or county shall be expended by the governing body of the municipality or county as required and provided by law for other sales and use tax proceeds levied and collected by the county or municipality including any bonded indebtedness. (Act 2002-418, p. 1068, §5; Act 2012-599, p. 1924, 1st Sp. Sess., §1.)

Source: Alabama Legislature (alison.legislature.state.al.us)URL: https://alison.legislature.state.al.us/code-of-alabamaFetched: 10/20/2026