MONTGOMERY, July 3, 2018 – On June 21, 2018, the U.S. Supreme Court issued its decision in South Dakota v. Wayfair, Inc. This decision struck down the requirement that a vendor must have “physical presence” in a state to be subject to state sales and use tax registration and collection requirements.

The Department of Revenue’s existing “economic nexus” rule 810-6-2-.90.03, which took effect in January 2016, will be applied prospectively for sales made on or after October 1, 2018. While this rule technically was effective January 1, 2016, its validity was in question pending the outcome of the Wayfair decision. Because Wayfair removed the constitutional impediments to the rule, it will be enforced going forward. Remote sellers with annual Alabama sales in excess of the rule’s $250,000 small seller exception should register for the Alabama Simplified Sellers Use Tax Program (SSUT) and begin collecting no later than October 1, 2018. Remote sellers seeking to comply with this existing rule and register to collect SSUT should visit https://revenue.alabama.gov/wp-content/uploads/2017/07/SSUT-Application.pdf where they will find an application form and additional information about participation in the SSUT program.

In addition to the collection requirements for remote sellers, Ala. Act 2018-539 requires marketplace facilitators with Alabama marketplace sales in excess of $250,000 to collect tax on sales made by or on behalf of its third-party sellers or to comply with reporting and customer notification requirements. The Act mandates compliance with reporting or remitting requirements on or before January 1, 2019. However, marketplace facilitators desiring to facilitate the collection and remittance obligations of their marketplace sellers that go into effect on October 1 may begin collecting and remitting taxes on marketplace sales through the SSUT program upon completion of the application and registration process. Remote sellers who can demonstrate that a marketplace facilitator is collecting and remitting SSUT or sales tax on their Alabama sales will be relieved of the requirements imposed by rule 810-6-2-90.03.

Recent legislative changes to the SSUT, new legislative reporting requirements for online marketplaces, combined with the Supreme Court’s Wayfair decision represent unprecedented change for Alabama’s sales tax. The Department is studying these changes and intends to engage the rule making process to develop additional long-term guidance on the impact of these changes. Those rules will be developed with the input of stakeholders over the next several months and into 2019. Rules addressing both collection requirements for remote sellers and collection or reporting requirements for marketplace facilitators will be posted at the following link: https://revenue.alabama.gov/tax-policy/proposed-rule-changes/

The Alabama Department of Revenue (ADOR) has launched alabamataxamnesty.com, a website dedicated to the Alabama Tax Delinquency Amnesty Program of 2018, created by Act 2018-153.

The amnesty application period runs July 1 – Sept. 30, 2018, and applies to eligible taxes due before, or for tax periods that began before, Jan. 1, 2017. All applications must be submitted electronically through the Alabama tax amnesty website, where taxpayers can sign up to receive notifications about the program. The website also provides all the information taxpayers may need on the program and answers to frequently asked questions.

The amnesty program will be available to eligible taxpayers who have not been contacted by the department within the last two years and are not a party to a criminal investigation or litigation in any court of the United States or Alabama pending as of March 6, 2018, for nonpayment, delinquency, or fraud in relation to any Alabama taxes administered by the Department.

Most taxes administered by ADOR, with the exception of motor fuel, motor vehicle, and property taxes, are eligible for the 2018 Amnesty Program. This includes, but is not limited to, corporate and individual income, business privilege, financial institution excise, consumers use, sellers use, withholding, and sales taxes.

All penalties and interest will be waived for approved amnesty applications.

Taxpayers who believe they may have delinquent tax liabilities in Alabama should consult with their tax advisers regarding their eligibility for the tax amnesty program.

For more information on taxpayer eligibility, eligible tax types, leniency terms, the application process, and more, visit alabamataxamnesty.com or email amnesty@revenue.alabama.gov.

By: Kelly Poe, al.com

Alabama coal miners have recently faced mine closures, job losses and benefits reductions, and two recently awarded federal grants aim to ease some of the problems the industry decline has caused.

The federal government’s Appalachian Regional Commission has awarded two groups in Alabama grants to help the industry figure out what’s next.

Southern Research in Birmingham received a $60,202 grant to develop a strategic plan to increase entrepreneurship in Alabama’s counties that have been most impacted by the decline of coal.

“We’re going to have an energy industry in the state. What’s it going to be for the next 100 years?” Southern Research’s Director of Energy and Environment Corey Tyree said. “For the last 100 years, coal was a big part of that. I don’t see an economic driver that’s going to bring that back.”

Tyree estimates that since the industry’s peak in 1990, Alabama has lost 21,000 jobs and $1.8 billion in the coal sector throughout the entire supply chain. Tyree used Energy Information Administration data to develop that estimate.

“Coal is an important part of our historical economic base,” Tyree said. “This region, like others in the Appalachian region, was disproportionately affected by the downturn in the industry.”

The plan will focus on how to use existing research and development assets in the energy and agricultural sectors to encourage small business growth.

The Shoals Entrepreneurial Center in Florence was awarded a $997,150 grant for the “Shoals Shift” project. The funds will fund entrepreneurial programs to increase profitability of area companies and startups through more efficient use of broadband technologies.

ARC estimates the project will create or retain 110 jobs, start 20 new business, and leverage $10 million in private estimates.

Last year alone was a devastating blow to the Alabama coal industry, following a long history of decline in the coal industry. Walter Energy eliminated hundreds of jobs last year as it navigated bankruptcy, but it was far from alone. North American Coal Corporation closed its Jasper operation, and Cliffs Natural Resources laid off more than 200 workers.

Alabama is one of nine Appalachian states to receive grants totaling nearly $39 million that are expected to create more than 3,000 jobs. The other eight states to receive grants are Texas, Kentucky, Mississippi, Ohio, Pennsylvania, Tennessee, Virginia and West Virginia.

The Appalachian Regional Commission estimates that 23,000 Appalachian coal jobs have been lost between 2011 and 2015.

For the original article, click here.

The Alabama House of Representatives on Tuesday approved new legislation sponsored by State Rep. Kyle South, R – Fayette, that would provide a state income tax credit to small businesses for each new employee they hire.

The bill is included in the House Republican Caucus’s “Right for Alabama” legislative agenda that was announced prior to the session’s start, according to a release from the office of House Speaker Mike Hubbard.

“Over the last 20 years, small businesses have created more than 65 percent of all new jobs in our nation, but Alabama and other states have focused almost exclusively on providing incentives to industries and large employers,” South said. “By passing my bill, the Legislature can send the strong message that we care about small business owners and employees and understand and value the important role they play in Alabama’s economy.”
Under the new legislation, small businesses with 75 employees or less will be able to claim a $1,500 tax credit for each qualified, new, full-time employee hired.

The business may also claim an additional $1,000 tax credit if the new employee is an unemployed veteran recently returned from deployment. This credit comes as part of the Heroes for Hire Act passed by the legislature in 2012.
To qualify for the credit, businesses must retain the new employee for a consecutive 12-month period, and the employee must earn a salary of $40,000 a year or more. The employee must also be an Alabama resident in order to ensure that the credits are being used on behalf of Alabamians.

South said the state can now offer these credits with little or no loss of state budget dollars because the income taxes that these previously unemployed workers will begin to pay will offset the cost of providing the tax credit.
“Through whichever prism you view it, this bill is a win for small business owners, it’s a win for the newly-hired and their families, and it’s a win for the state,” South said.

To view the original article from the Birmingham Business Journal, click here.

MONTGOMERY, AL (WSFA) –
A sales ban on fetal body parts, small business tax credits, and Second Amendment protections are among a host of items unveiled Thursday as part of the Alabama’s House Republican Caucus’ upcoming legislative agenda. The Caucus is promising to use its supermajority status to focus on a host of issues and is branding its agenda “Right for Alabama”.

Agenda points focus on 11 specific issues. They include budgeting and pension reforms, school and student safety, small business tax credits, taxpayer protections, protections against Syrian refugee threats, teacher pay raises and classroom technology upgrades, a constitutional amendment to solidify the state’s ‘right to work’ status, and protections for gun owners and unborn children.

House Speaker Mike Hubbard (R-Auburn) and other House GOP leaders gathered to release the agenda at the Statehouse. The bills will get first priority in the upcoming session, which starts on Feb. 2.

Here’s exactly what the “Right for Alabama” agenda says about each specific point.

Zero-Based Budgeting Reform – In order to bring a new level of scrutiny, transparency, and accountability to the appropriations process, the Alabama House Republican Caucus will begin to implement a new “zero-based” budgeting system. This revolutionary new process will require state agencies to fully account for each dollar they receive, help identify ineffective programs that are in need of elimination, and potentially save or re-direct substantial amounts of taxpayer dollars.

Pension Reform – The Alabama House Republican Caucus will continue its efforts to ensure the long-term solvency and fiscal health of the Retirement Systems of Alabama while protecting and preserving the current level of benefits earned by existing retirees and employees.

Alabama Taxpayer Advocate Act – Under current law, the role of Taxpayer Advocate must be filled by an employee within the Department of Revenue who is selected by the commissioner and reports directly to her. In order to ensure fair and equitable treatment of Alabama taxpayers, House Republicans will offer legislation requiring the Taxpayer Advocate to be appointed by the governor from a pool of candidates recommended by a committee of government officials and business professionals. The advocate’s role and duties in protecting taxpayers’ interests would be expanded significantly under this measure.

Small Business Job Creation Tax Credit – During the past five years, Alabama has transformed into one of the most business-friendly states in the nation, and the Legislature has worked to provide incentives necessary to lure thousands of new, high-paying jobs to our state. Small businesses, however, have created more than 65% of all new jobs over the past 20 years nationally. To encourage further job expansion within the state, Alabama House Republicans will propose a $1,500 income tax credit for every new, qualified employee hired by small businesses operating within the state.

Alabama’s Right To Work Constitutional Amendment – Although Alabama and many other southeastern states are firm right-to-work states, labor unions have stepped up their efforts to organize industrial facilities across the region after experiencing recent successes that include Volkswagen in Tennessee and Golden Dragon in Wilcox County. Alabama passed one of the nation’s first right-to-work laws roughly 60 years ago, but House Republicans believe it is time to enshrine that employment protection in our state constitution and will offer an amendment to be included on the November 2016 election ballot.

Protecting Public Safety from Syrian Refugee Threats – Recognizing the inherent risks that exist and lacking confidence in federal claims of thorough background checks, the Alabama House Republican Caucus will oppose any Obama administration effort to relocate masses of Syrian or other Middle Eastern refugees to our state. The possibility of even one “refugee” with a questionable background slipping through the system poses a danger to our public safety that Alabamians should not be forced to endure.

Preserving Second Amendment Constitutional Rights – The Alabama House Republican Caucus pledges to assist members of our federal delegation in overturning Barack Obama’s unconstitutional executive orders attacking our Second Amendment right to own firearms.

School Security and Student Safety Task Force – Alabama schools have been extremely fortunate to avoid a violent situation like those that have occurred in other states, but we must continue looking for ways to improve school safety and ensure we are as prepared as possible to prevent or mitigate any situation that might arise. The Alabama House Republican Caucus will create a task force comprised of key education, law enforcement, and emergency management leaders from across the state and tasked with completing a comprehensive review and assessment of state laws, regulations, and protocols relating to security and student safety in our public K-12 schools, colleges, and universities. The Legislature will consider the task force’s resulting recommendations for improvement.

Teacher Pay Raise – Recognizing their importance in preparing students for success in the 21st Century workplace, House Republicans will work to provide Alabama’s K-12 and post-secondary education personnel with a pay raise.

Wireless Infrastructure Renovation for Education (WIRED) Act – An extensive knowledge of operating computers will be required of everyone in the 21st century workforce, so today’s students must be proficient in the latest technologies. Three out of five schools in the United States currently lack the infrastructure needed to take advantage of wireless technology, and that number is believed to be even higher in Alabama. The WIRED Act proposed by House Republicans will create a framework for putting wireless broadband in all K-12 public schools by providing grants to local systems for the purchase, installation or upgrade of wireless infrastructure. Schools already possessing the necessary infrastructure may use the grants to purchase wireless devices and technology.

Unborn Infants’ Dignity of Life Act – Recent reports about outrageous acts by Planned Parenthood and its representatives have prompted public outcry regarding the organization and the cavalier practices it utilizes regarding unborn life. In order to ensure that these atrocities do not occur in Alabama, the House Republican Caucus will offer legislation banning the sale of the bodily remains of unborn infants.

Copyright 2016 WSFA 12 News. All rights reserved.

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