Alabama: Proposal on Intrastate Nexus

The Alabama Department of Revenue has withdrawn an earlier controversial rule proposal on establishing intrastate nexus for local sales/use tax purposes and replaced it with a more limited rule proposal that would impart nexus for local sales/use tax purposes when a business delivers goods within a locality via its own trucks/vehicles or contract carrier.

This new rule proposal parallels Alabama’s interstate sales/use nexus rule, wherein delivery into Alabama by an out-of-state seller creates nexus with Alabama if the seller uses its own vehicles/contract carrier to make the delivery