In a previous blog entry I noted that the Alabama Department of Revenue had proposed an amendment to Regulation 810-6-5 to expand the tax base of the Alabama rental tax to a wide variety of digital products, which could have included SaaS and other remote access software.
However (in July), the Alabama reconsidered its proposed regulation and withdrew from further consideration. Pressure came from both the business and legislative communities as they argued that this type of expansion should come through the legislature and not be done via administrative means.
As more states continue to evaluate creative ways to tax SaaS and digital transmissions, this issue may resurface in Alabama in the near future.
Other recent “Alabama (AL)” posts by Ned Lenhart, CPA:
- Alabama DOR Withdraws Amendment to Tax Digital Transmissions
- “Digital Transmissions” Subject to Alabama Rental Tax! (Update)
- Alabama Caterers: Service Charges Are Taxable!
- Alabama's "Non-Nexus Use Tax Remittance" - Will Flat Tax Fall Flat?
- Alabama Governor Proposes Sales Tax Increase to Balance Budget!