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Alabama to enforce internet sales tax collections

July 6, 2018

MONTGOMERY, Ala. (AP) — Alabama will begin collecting online sales taxes on Oct. 1.

The Alabama Department of Revenue announced the move in the wake of the U.S. Supreme Court decision last month that states can force online shoppers to pay sales tax.

The state in 2016 established regulations that remote retailers with more than $250,000 in sales in Alabama should pay tax in the state. However, the constitutionality of the rule had been in question until the Supreme Court decision. The Department of Revenue said the regulation will be enforced going forward.

A number of online retailers, including Amazon, already remit taxes to the state through the Alabama Simplified Sellers Use Tax. The program allows companies to pay a flat 8 percent sales tax, instead of navigating different county and city tax rates.

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