Alabama online sales tax goes into effect

Alabama becomes one of ten states implementing an online sales tax on Monday.

Posted: Oct 1, 2018 4:08 PM
Updated: Oct 1, 2018 5:53 PM

When ordering something online, you may see the price tag go up. That's because a Supreme Court ruling in June says states can force online shoppers to pay an online sales tax, and Alabama is doing just that.

A 26-year-old Supreme Court ruling required a store to have a physical presence in the state to collect a sales tax, but that ruling was overturned and now Alabama becomes one of ten states implementing an online sales tax on Monday.

Andrea Parham runs a local brick and mortar store in Huntsville and says at times, it's hard to compete with online retailers.

"They were avoiding sales tax and sometimes you can price compare, price match, to find steeper discounts online," Parham said.

Online giants such as Overstock and Wayfair were able to bypass collecting a state sales tax because they were strictly online, but now, that doesn't matter. Parham says this new tax could help.

"It might steer people to shop locally or see what's in the area before exclusively shopping online," Parham said.

Katie Caldwell is an avid online shopper and says this tax won't change anything for her. In fact, she sees this helping the state.

"Up front, it sounds like a bad thing because people don't want to spend more money, but taxes are extremely beneficial," Caldwell said.

Parham thinks this is a step in the right direction for balancing the playing field between online retailers and brick and mortar stores.

"I do think that it tips it a little more in favor to brick and mortar stores, to local retailers, in a positive way," Parham said.

On Monday, Alabama joined nine other states in enforcing the online state sales tax including: Illinois, Indiana, Kentucky, Massachusetts, Minnesota, Michigan, North Dakota, Washington and Wisconsin.

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Alabama Coronavirus Cases

Confirmed Cases: 45263

Reported Deaths: 1007
CountyConfirmedDeaths
Jefferson5486155
Montgomery4246105
Mobile4219136
Tuscaloosa234644
Marshall177011
Madison15548
Lee143337
Shelby135724
Morgan11285
Walker98525
Baldwin9809
Elmore96215
Dallas9109
Franklin90216
Etowah79013
DeKalb7615
Chambers64327
Autauga63612
Butler63228
Tallapoosa60469
Russell5680
Unassigned52226
Limestone5181
Houston5106
Lauderdale5016
Lowndes47821
Cullman4705
Pike4525
Colbert4266
St. Clair4162
Escambia4118
Calhoun3875
Coffee3863
Covington3727
Bullock36810
Barbour3572
Talladega3237
Marengo31711
Hale31521
Dale3020
Jackson3022
Wilcox2948
Sumter28512
Clarke2836
Winston2663
Chilton2622
Blount2511
Monroe2412
Pickens2386
Marion23613
Conecuh2177
Randolph2169
Macon1999
Choctaw19712
Bibb1961
Greene1868
Perry1791
Henry1363
Crenshaw1253
Washington1187
Lawrence1090
Cherokee1037
Geneva840
Lamar801
Fayette721
Clay692
Coosa591
Cleburne391
Out of AL00

Tennessee Coronavirus Cases

Confirmed Cases: 53514

Reported Deaths: 665
CountyConfirmedDeaths
Shelby12176202
Davidson11599127
Rutherford311136
Hamilton286736
Sumner167053
Trousdale15035
Williamson142015
Knox13098
Out of TN10958
Wilson99917
Putnam9197
Sevier8573
Robertson85511
Bradley7734
Unassigned7312
Lake6940
Tipton6535
Bledsoe6231
Montgomery5877
Bedford5847
Macon5004
Maury3793
Hamblen3744
Hardeman3574
Fayette3282
Madison3182
Loudon2931
Rhea2890
Blount2623
Dyer2613
McMinn24318
Cheatham2361
Dickson2190
Cumberland1884
Washington1820
Lawrence1726
Lauderdale1543
Jefferson1471
Anderson1432
Sullivan1412
Monroe1406
Gibson1331
Coffee1250
Smith1241
Greene1172
Obion1172
Hardin1157
Cocke1050
Marshall981
Haywood962
Franklin903
Wayne890
Hickman880
Warren810
Marion794
McNairy760
White763
Carter701
DeKalb700
Giles701
Lincoln680
Weakley661
Overton651
Hawkins642
Roane640
Grundy631
Unicoi550
Campbell541
Claiborne530
Carroll491
Henderson480
Grainger470
Polk460
Henry450
Johnson450
Sequatchie420
Crockett403
Cannon370
Chester370
Humphreys352
Perry350
Meigs320
Jackson300
Morgan281
Fentress240
Stewart240
Decatur220
Clay190
Union190
Scott180
Houston150
Moore150
Benton131
Hancock80
Van Buren70
Lewis60
Pickett60

 

 

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