Alabama eFairness

Department of Revenue (DoR) issued rule 810-6-2-.90.03 declaring that remote sellers without a physical presence in the state would be obligated to collect and remit sales tax on their transactions with in-state consumers if the remote sellers' annual transactions in the state exceeded $250,000. The state declared that this level of sales constituted "substantial economic presence". DoR filed a notice of assessment against online retailer Newegg, which subsequently appealed the assessment to the Alabama Tax Tribunal raising constitutional defenses to the assessment.