State and Local Tax (SALT) attorney Bruce Ely was quoted in Bloomberg BNA on a published legal opinion from the state attorney general’s office that says Alabama retailers can specify where a sale occurs for sales tax purposes. State law lets sellers and buyers agree through an explicit contract that the sale occurred at some other point—such as the point of payment or the warehouse from which a product was shipped.
The opinion clarifies and reinforces the policy that many tax advisers have instructed their clients to follow for years, despite a bit of confusion from the state's revenue department, said Ely.
The legal opinion parallels a previously revoked Alabama Department of Revenue revenue ruling “by confirming that the local governments are bound by the state rules, which is something we thought was settled with the passage of the Local Tax Simplification Act of 1998,” Ely explained. “This new ruling reaffirms that the retailer who uses their own delivery vehicle or even a so-called ‘contract carrier’ and its customer can stipulate where title transfers, and therefore which city and county sales tax is due.”
The complete article, “Alabama Buyers, Sellers Can Pick Where Sales Tax Is Due: AG,” appeared in Bloomberg BNA on October 28, 2016. (login required)