Alabama Electronic Commerce Taxation

Statutes

• Alabama Statute sec.; 40-14-21 franchise tax applies to corporations "doing business" in the state.
• Alabama Statute sec.; 40-21-80 see also sec.; 40-21-80(11)(iv) Internet access charges.
• Alabama Statute sec.; 40-23-2(1) sales of goods purchased over the Internet treated same as sales of tangible personal property; they are subject to the rules of nexus and Alabama sales/use tax laws.
• Pending legislation- Senate Bill 59 has been introduced and would exempt Internet access charges from the state telecommunications service tax.

• Alabama Dept. of Revenue Sales and Use Tax Rule 810-6-1-.37(1)(3)(4) information/software purchased over the Internet.
• Alabama Dept. of Revenue Sales and Use Tax Rule 810-6-5-.26 - states that "Internet access charges are not taxable" under the state's utility privilege tax.
• Alabama Dept. of Revenue, Revenue Ruling No. 94-015 sales/use tax not applicable to information transmitted electronically or by magnetic-tape.
• Alabama Dept. of Revenue, Revenue Ruling No. 96-003 The Alabama Legislative Council voted in Oct. 1997 to temporarily suspend Ruling 96-003 (Nov. 22, 1996), which had concluded that Internet and related online access charges were subject to utility gross receipts and utility service use taxes.

• Wal-mart Stores, Inc. v. City of Mobile and County of Mobile, Docket No. 1941890 Supreme Court of Alabama (1996).
• Color Craft, Inc., Taxpayer v. State of Alabama Department of Revenue, 96-223 Alabama Department of Revenue, Administrative Law Decision (1997).

• Vertex Inc. Tax Cybrary - Alabama