The Reworking of Alabama's Local Nexus Rule
- Aug 5, 2013 | Gail Cole
The Alabama Department of Revenue (ADOR) is considering changing the state's local nexus rule, which has been in effect for nearly 40 years. The state adopted a new rule regarding the conditions that trigger nexus for out-of-state sellers in July of 2012.
In April of this year, ADOR proposed repealing 810-6-3-.51 because it "does not adequately describe the circumstances under which a seller would be required to collect and pay local taxes." The repeal of 810-6-3-.51 is awaiting final adoption, and is scheduled to take effect January 1, 2014.
The department proposes replacing 810-6-3-.51 with proposed new Rule 810-6-5-.04.02. Last week, ADOR released a notice of intended action regarding the new rule, which reads:
"The department proposes to promulgate the above rule [810-6-5-.04.02] which will establish the authority of local jurisdictions to impose the requirement to collect the local sales or use taxes on Alabama sellers who are located outside the local jurisdiction."
A hearing to discuss the adoption of the new rule is set for September 6 in Montgomery. If approved, it will take effect January 1, 2014.
Read the out-of-state nexus rule, 810-6-2-.90.01.
Is your business ready for sales tax changes?
Get Free Tax Rate Tables