Alabama Seller Nexus Rule
- Aug 3, 2012 | Susan McLain
Alabama has adopted a new rule – 810-6-2-.90.01 “Seller’s Responsibility to Collect and Pay State Sales Tax and Seller’s Use Tax.”
The rule identifies the conditions under which an out-of-state seller is engaged in business within the state and therefore, bears the burden of registering with the state and collecting sales tax.
The conditions “…include any contact with this state that would allow this state to require the seller to collect and remit the tax due under the provisions of the Constitution and laws of the United States.”
Conditions That Cause Nexus
- Delivery within the state using a vehicle owned by the selling entity;
- Maintaining, occupying or using, “…permanently or temporarily, directly or indirectly, or through a subsidiary, or agent by whatever name called, an office, place of distribution, sales or sample room or place, warehouse or storage place or other place of business;”
- Employing a representative, salesman or installer operating in the state;
- Soliciting “…with a broadcaster or publisher located in this state…”;
- Soliciting “…orders for tangible personal property by mail;
- Benefiting from “…any banking, financing, debt collection, telecommunication, or marketing activities occurring in this state;
- Benefiting from “…authorized installation, servicing, or repair facilities…” in the state;
- “…franchise or licensing arrangement or contract…”;
- Advertising “…transmitted or distributed over a cable television system in this state”;
- Distribution of “…catalogs or other advertising matter,” that creates orders from residents.”
Alabama has had a Remote Entity Nexus law since August 2003. The new rule also defines use tax situations for remote sellers.
The rule became effective July 31, 2012.