As of Aug. 1, 2017, retailers can deliver up to $10,000 in merchandise annually to a city before a $100 delivery license will be required under Act No. 2017-415. Gov. Kay Ivey signed SB316 by Sen. Paul Sanford, R-Huntsville, and Rep. Paul Lee, R-Dothan, into law Friday, May 26, 2017.
The Alabama Retail Association-backed law also caps issuance fees and penalties at $10 each and limits interest rates. A business has 45 days to get a delivery license once it reaches the $10,000 annual threshold.
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Previously, a $100 delivery license was required if a retailer delivered even a penny’s worth of merchandise to a city where it did not have a store or other physical presence. Some Alabama Retail members buy as many as 30 delivery licenses each year, even if they deliver only one or two items to a customer in each of those cities.
During an April public hearing on the legislation, Alabama Retail Association President Rick Brown told lawmakers, “If local governments continue to nickel and dime retailers, there won’t be any retailers left to deliver.”
Sanford, the Senate sponsor, said creating a threshold before a license is required “will help small businesses expand their customer base.”
Alabama Retail thanks all of those who contacted their representatives about SB316, especially the furniture, florist and durable medical equipment members who were willing to be quoted in media reports, in Alabama Retail-produced videos and in white papers provided to legislators. Your efforts made a difference.
Your association, along with the National Federation of Independent Business, worked to ensure this legislation of importance to retailers and other businesses that deliver became law.
This article is part of the Alabama Retail Report, a communication for Alabama Retail Association members. Not a member? Join us!