Alabama Wants Taxes Collected for Online Purchases

BIRMINGHAM, Ala. (AP) - Alabama officials are warning residents that they may owe taxes on purchases made online or with out-of-state retailers.

Department of Revenue spokeswoman Carla Snellgrove said the state has started a pilot program that sends letters to a random sample of taxpayers who did not report any use taxes on their annual filings.

Alabama residents are required to pay a 4 percent tax when a retailer doesn't collect the state sales tax.

That tax could apply to computers, books, electronics and clothing purchased online or from an out-of-state store.

In a typical year, about 3 percent of the 1.8 million people filing an Alabama tax return report owing any use tax.

(Copyright 2010 by The Associated Press. All Rights Reserved.)

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  • by Jerry on Sep 7, 2010 at 10:24 PM
    3% post on their taxes what they buy online. There is 3% of people with too much money on thier hands or just plain dumb. You decide
  • by Out of Work on Sep 5, 2010 at 04:06 PM
    What a Great Idea to Help slow a already stagnate economy! Just think how this will slow on line purchases and more than likely result in loss of many Jobs. What a exercise in stupidity.
  • by Clint Location: Dothan on Sep 5, 2010 at 03:33 PM
    Alabama sure asks for a lot when we get so little in return.
  • by Craig Location: Samson Alabama on Sep 5, 2010 at 03:25 PM
    they try to collect any way they can!!!!
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