Alabama will soon start collecting online sales taxes

Alabama will soon start collecting online sales taxes

MONTGOMERY, AL (WSFA) - Online shoppers may start to see some price increases.

This comes after the Supreme Court ruled last month that a business does not need to physically be located in the state to collect a sales tax.

Right now Alabamians are responsible for paying the sales tax from online purchases on their income tax but many don't.

But starting Oct. 1, some online businesses making more than $250,000, like eBay and Wayfair, will be in charge of collecting the sales tax. This is the start of the fiscal year.

It means you will start seeing a sales tax when you purchase from these online stores.

Many small business owners I spoke with say this is going to help level the playing field.

They say sometimes people go into a store to touch and feel the clothing but then buy it online.

Some are hoping this tax will help fund needs throughout the state.

"I think it's about time. You know sales tax pays so many different things and you know when you order on the internet, yes it is convenient, but it's not taking care of city services and things done in the community," said Al Cantrell, owner of Al's Flowers.

George Wilder, has owned a small business for over 40 years. He currently owns The Locker Room in Montgomery.

"The interesting thing that people don't think about is the FedEx trucks, the UPS trucks that deliver that stuff are riding on our streets," Wilder said. "They're coming to your door. They're putting potholes the wear and tear on the streets. And there's no taxes being paid for that. Our taxes are paying for that."

Rep. Steve Clouse said this will not fix all of the state's financial problems, but will help put some additional funds into Alabama's budget.

Lawmakers created a voluntary program for businesses without a brick and mortar store called the Alabama Simplified Sellers Use Tax program. The program lets these businesses pay an eight percent flat sales tax. Some money will go to the state and the other portion will go to local governments.

This program will soon be required.

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