State and Local Tax (SALT) attorney Bruce Ely was quoted in Bloomberg BNA on Alabama legislation that could require internet retailers who don’t collect sales tax to report their sales to the state and notify customers of use tax obligations. The bill, approved by the Senate on February 16, would give the Alabama Department of Revenue the authority to impose reporting and notification requirements on sellers who don’t remit sales tax. It's likely that even more states will take the approach of reporting and notification requirements, explained Ely.
“We hear this bill will sail through the Legislature, but as a tax practitioner and drafter of tax legislation, I'd recommend that more detail be added to the bill,” Ely said. “The current version gives the ADOR incredibly broad discretion in what the notice provisions will actually look like, whether the internet retailer must report its Alabama sales to the ADOR on an annual basis or even more frequently, and with what level of detail.”
The complete article, “Online Sales Tax Reporting Bill Clears Alabama Senate,” appeared in Bloomberg BNA on February 17, 2017. (login required)