Simplified sellers use tax, additional tax levied, distribution of proceeds provided

HB 36 adds a new 1.25% simplified sellers use tax on online sales of physical goods in Alabama, on top of the existing 8% tax. This additional tax applies to eligible sellers and marketplace facilitators (like online marketplaces) participating in the state's sales tax program. Proceeds from this new tax will be distributed solely to local public schools based on average daily student enrollment from the previous school year, replacing the previous split between state and local governments. The bill takes effect September 1, 2025, and includes minor technical updates to existing tax code language.