If the Alabama Internet Tax bill passes, it will cause us major problems.
Senator Scott Beason will determine if this bill passses. It has already passed the House. If it gets on the Senate Calendar and gets voted on, it likely will pass. Only 2 days left in the current session. Senator Beason is Chairman of the Rules Committee, and it is he who decides if the bill gets on the Senate Calendar.
334-242-7794 office in Montgomery
205-585-4094 cell
Please call him, both numbers, leave a short simple message, "Vote No to Alabama Internet Tax."
Please take 2 minutes to call and leave a short message at: Madison County Legislative Office 100 St. Clair Avenue, S.E., Suite A Huntsville, Alabama 35801 Phone (256) 539-5441, Fax (256) 539-5444 Simply say, please tell our local state senators to vote No to Alabama Internet Tax. Takes 60 seconds, and you are done.
If this bill passes, it will cost us dearly. Please take time, TODAY, and make the call. Forward this to your coworkers.
From the bill's summary:
8 To add a new Section 40-23-89, Code of Alabama 1975, 10 to require notification to certain purchasers of tangible 10 personal property that they have an obligation to remit 11 consumer use taxes to the State of Alabama and appropriate 12 local governments if the retailer does not collect and remit 13 on their behalf the applicable state and local sales tax on 14 the sale, and to assess a civil penalty and interest for a 15 violation of these provisions; to require those retailers to 16 send an annual summary of purchases to their Alabama 17 customers, with a reminder of the customer's potential 18 consumer use tax obligations; to exempt certain small 19 retailers from these requirements; to add a new Section 20 40-23-90, Code of Alabama 1975, to authorize the Department of 21 Revenue to facilitate the collection of the consumer use tax 22 on these sales by amending its individual income tax forms so 23 that Alabama residents and part-year residents may remit both 24 the state and local consumer use tax due, on an annual basis, 25 and to direct the distribution of the use tax revenue in 26 excess of the state general use tax rate to the local 27 governments.
Information from Alabama Eagle Forum:
Rep. Ison has introduced legislation (HB365) to increase enforcement of the 1939 sales and use tax law specifically targeting internet sales. The vast majority of Alabamians are unaware of the law which requires them to remit a "use" tax on items purchased through catalogs or over the internet. The law has never really been enforced, and Alabama retailers are trying to change that.
Local retailers argue they are put at a disadvantage because consumers must pay sales tax when buying at their stores, but do not have to pay sales tax when ordering online. While this is true, there are local retail stores that continue to flourish. The advantages of having the desired goods immediately and without paying shipping and handling often outweigh the benefit of not paying sales tax. Even if that were not the case, legislators cannot use public policy to subsidize business models that don’t work in the current marketplace. The internet is not a fad. Like it or not, business owners must begin to account for it when making their business plans.
Rep. Ison’s proposed legislation puts a huge burden on online retailers and an even bigger burden on individual consumers. As it stands, HB365 will:
The bill would very likely be declared unconstitutional. Similar laws in other states have failed on constitutional grounds. This bill discriminates against out of state retailers, actually compels certain retailers to collect a tax, and relieves certain taxpayers from the tax. Alabama is trying to skirt relevant court decisions, but this clearly places a burden on out of state businesses to assist in tax collection, if not collect it directly, in likely violation of the Commerce Clause.
The Bottom Line: This bill has constitutional problems, privacy problems, and tax problems.
