Alabama Starts Voluntary Tax Program for Online Sellers

The Alabama Revenue Department is providing a way for online sellers to pay sales taxes.

The agency says it’s starting a voluntary program that lets Internet-based sellers collect and report an 8 percent tax on all sales made in the state.

As an incentive, the state is letting sellers keep 2 percent of the tax they collect properly.

The effort could increase tax revenues from online sales, which often lack the proper tax payments mandated by the state. Purchasers have been supposed to figure out proper tax payments in the past.

The program comes as the state is trying to plug a $200 million shortfall in the operating budget for the fiscal year beginning Oct. 1.

A special legislative session failed to fix the problem, and another one begins Tuesday.

 

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