Alabama Issues Guidance As Result of SD v. Wayfair

Remote sellers received some clarity from Alabama today regarding its existing economic nexus and marketplace facilitator rules. Although remote sellers are not happy about the decision by the Supreme Court in SD v Wayfair, this announcement helps clear up confusion and concern that has existed since the ruling regarding states like Alabama that had economic nexus rules similar to South Dakota already in place. Although Alabama’s economic nexus rules were technically in place as of January 1, 2016, the rules will only be applied prospectively starting on sales after October 1, 2018.

This announcement is good news as numerous states such as Alabama have had economic nexus rules in place for several years, and there was a concern on how these states would handle the suggestion by the Supreme Court to have rules only apply prospectively.  Remote sellers with annual Alabama sales more than $250,000 should register for the Alabama Simplified Sellers Use Tax Program (SSUT). Alabama also clarified that the effective data for Marketplace Facilitators with sales exceeding $250,000 begin January 1, 2019.

See the full text of this notice here