Starting Monday, Alabamians will have to pay more to shop online, in some cases.
The Alabama Department of Revenue is requiring online retailers that do not have a physical presence in the state with sales of more than $250,000 a year to register with the Alabama Simplified Sellers Use Tax Program (SSUT), and to start collecting taxes on Oct. 1. The SSUT program allows registered companies to pay a flat 8 percent sales tax, instead of navigating different county and city tax rates.
Alabama is expected to be among the states most likely to see the biggest percentage increase in revenue based on the Barclays research. But a number of online retailers, including Amazon, already remit taxes to the state through the SSUT, so shoppers will see no changes in their purchase taxes.
The U.S. Supreme Court paved the way for this tax back in June when it made a 5-4 ruling to overturn two decades-old Supreme Court decisions that impacted online sales tax collection.
Alabama is among 10 states whose online sales tax is going into effect Monday. Illinois, Indiana, Kentucky, Massachusetts, Minnesota, Michigan, North Dakota, Washington and Wisconsin are also beginning Oct. 1. Similar laws will go into effect in Connecticut and Iowa in the coming months.