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New Alabama regulation to require out-of-state sellers to collect sales and use tax contrary to Supreme Court precedent

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Alabama recently promulgated a controversial regulation requiring certain out-of-state retailers to collect sales and use tax on sales made in Alabama, even though the out-of-state retailers may not have physical presence in Alabama. This regulation appears to contradict the U.S. Supreme Court’s conclusion in Quill Corp. v. North Dakota, a decision based on the Commerce Clause of the U.S. Constitution requiring out-of-state retailers to have physical presence in a state before a state can require the retailer to collect and remit sales and use tax.

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