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July 2018 Group Watch: AL to Collect Online Sales Tax

Alabama will start collecting online sales taxes on October 1, 2018. The change comes in the wake of a recent Supreme Court ruling that allows sales tax assessments on businesses that aren’t located in a state. According to the Alabama Department of Revenue, remote retailers with in-state sales of more than $250,000 must register with the Alabama Simplified Sellers use tax Program and begin collecting no later than October 1. There are currently more than 230 out-of-state online participants in the program. Under the program merchants pay a flat 8 percent sales tax, of which, 4 percent goes to the state, and 2 percent each to the affected county and city.

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The Bloom Group, Inc.

401 Adams Avenue, Suite 710
Montgomery, Alabama 36104
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