Recently, I ordered some stuff online.

At checkout, the retailer hit me with 8% AL state sales tax...I'm a little PO'd at the way they did, since the total I THOUGHT they were charging changed AFTER I submitted the order.

Even this is not the cause of my angst. My problem, is the fact they are collecting 8% rather than the 4% the state of AL actually charges for sales tax...

I emailed the seller and got some story about the state of AL having a "simplified rate of 8%".

Do any of y'all have any input that can make sense of that or do I need to get DoeKiller to start a Class Action Lawsuit??

It went into effect October 1st. 4% goes to the stage, 2% to the county, and 2% to the city.

Many companies have a program tied to their online storefronts or ordering systems that automatically calculates tax based on your zip code. It will automatically calculate and apply it based on city/county/state tax codes and it takes all the guess work or human error out of it. In 10 years I think I've seen one case where it was incorrect. I routinely have customers call and bitch at me for tax on their purchases, as if I have any control over it at all. This is simply a loophole that has relatively recently been closed up. It's less a case of "getting screwed" and more a case of "not getting away with it anymore".

State of Alabama passed a law this past summer that went into effect October 1, like said above.

Just the way it is now. No more "out of state" ordering loophole anymore.

What if u don't live in city that zip says u do? I live in Tuscaloosa Co but have McCalla zip.

Yeah I get it and wasn't bitching about the fact they collected the tax, just the amount...SBS's post above clears it up though.

I'd like to see it in writing and will research it a little more when I get home form work, but that makes sense.

As do I...Technically at 8%, we are getting a 1% break since ALL sale tax in Tuscaloosa county is 9%, no matter where you live.

The software we use (I forget the name) actually narrows it down to your exact address. I have seen 2 customers whose shops are within eyesight of one another pay different rates, and as I recall, it was a similar situation to what you mentioned.

I think an incentive offered to companies for onboarding with the Simplified Sales Tax program was that the State agreed they wouldn't go after your company for previously not collecting and remitting sales tax. With the reversal of the Wayfair decision and all States progressing towards taxing online sales there should be a uniform sales tax program that states administer, Alabama's approach is correct but I would like to see a program in conjunction with other states.

where does the cities 2% go if you live in the county does the county just get 4% instead?

I have a clanton zip code but I'm well outside of the city limits. Not even in the PJ.
So I would have to be raising hell with somebody.

Yes, County gets the full 4%.

link to original (I think it is the original) Media Release concerning this issue. https://revenue.alabama.gov/wp-content/uploads/2017/05/Simplified_SLU_Notice_20150902.pdf
I know there have been some changes since the original but the basic requirement is still the same.
Gomer is spot on in his assessment that it is correction of a loophole

The county commission passed a 5% county wide sales tax for Tuscaloosa county with an exemption for those in a PJ. Then the county tax is the difference between what the PJ sales tax is and the 5% for the county.

As an example, I'm in Lake View. We have a 2% sales tax so we only pay a 3% county sales tax and a 4% state sales tax for a total 9%
J_K is in the county and no PJ...If he were to go down the road to the little store on HWY 216, his tax rate is 4% state and the full 5% county. Again a total 9%

I ordered a book on amazon last week and they collected zero sales tax.

Yeah, my understanding on that is they only collect sales tax if the order is fulfilled by amazon

I was ordering dental supplies from a very reputable online supplier. They were not collecting sales tax. We got audited and had to pay a huge Use tax, penalties, and interest.

Before now, you were technically supposed to pay sales tax on your annual tax filings.

Yep. There has been a line for "consumer use tax" on Alabama state income tax returns for years. That's what the line is for...purchases from out of state that didn't charge sales tax.

same in miss’ippi. when it first passed, it was only collected if the business had a brick and mortar within the state, but now it is supposed to be collected for any online purchase.