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The Reworking of Alabama's Local Nexus Rule

  • Aug 5, 2013 | Gail Cole

 Alabama looks at new nexus rule.

The Alabama Department of Revenue (ADOR) is considering changing the state's local nexus rule, which has been in effect for nearly 40 years. The state adopted a new rule regarding the conditions that trigger nexus for out-of-state sellers in July of 2012.

In April of this year, ADOR proposed repealing 810-6-3-.51 because it "does not adequately describe the circumstances under which a seller would be required to collect and pay local taxes." The repeal of 810-6-3-.51 is awaiting final adoption, and is scheduled to take effect January 1, 2014.

The department proposes replacing 810-6-3-.51 with proposed new Rule 810-6-5-.04.02. Last week, ADOR released a notice of intended action regarding the new rule, which reads:

"The department proposes to promulgate the above rule [810-6-5-.04.02] which will establish the authority of local jurisdictions to impose the requirement to collect the local sales or use taxes on Alabama sellers who are located outside the local jurisdiction."

A hearing to discuss the adoption of the new rule is set for September 6 in Montgomery. If approved, it will take effect January 1, 2014.

Read 810-6-3-.51.

Read proposed new Rule 810-6-5-.04.02.

Read the out-of-state nexus rule, 810-6-2-.90.01.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.