Editor’s note: This is a round-up of the day’s major events in Montgomery.
Sometimes, what does not happen in the Legislature is more important than what does.
Such was the case Thursday when lawmakers reconvened in Montgomery after a snow day. An Alabama Senate committee considered a bill to change the way the state taxes online sales but took no vote.
Here is a summary of a light day in the capital:
The big story: As mentioned, senators debated the online tax bill, sponsored by Sen. Trip Pittman (R-Montrose), according to AL.com. The Legislature created the Simplified Sellers Use Tax in 2015 allowing online retailers to voluntarily collect an 8 percent use tax imposed on out-of-state purchases. That provided $56 million to the state in fiscal year 2017, with money split evenly between the state and local governments.
AL.com noted that Amazon, the largest contributor to the voluntary tax fund, recently acquired Whole Foods. That changed the company’s tax status. Under a 1992 Supreme Court ruling, states cannot force out-of-state companies to pay sales taxes unless they have a physical presence in the state.
Since there are Whole Foods locations in Alabama, Amazon would pay regular sales taxes, which would cost the state government revenue. Hence, Pittman’s bill, which would allow Amazon to continue paying the voluntary use tax instead.
But officials in Mobile and other cities have complained that the bill could prompt other large retailers, like Wal-Mart, to switch over to the use tax for their online sales. That could cost local governments money if they receive less from the fund than they get from their local sales taxes.
The bill faced opposition. AL.com quoted Sen. Paul Sanford (R-Huntsville), as saying that Amazon cannot be eligible for the program. “I’m OK with us sitting where we’re at and letting the chips fall where they may,” he said.
But Sonny Brasfield, executive director of the Alabama Association of County Commissions, backs the bill. He tweeted that opposition by cities was “very confusing!”
Pittman indicated that he would bring the measure back to the committee at a later date after further discussions with his colleagues, according to Al.com.
California dreaming? A bill to copy California’s primary election system got a first reading in the Alabama House of Representatives on Thursday.
Sponsored by Rep. Mike Ball (R-Madison), the bill would require all candidates, regardless of party affiliation, to run on the same ballot. The top two candidates would face off in the general election.
In California, the so-called “jungle primary” has resulted in some elections in which the top two finishers are of the same party. In the 2016 U.S. Senate election, for instance, Democrat Kamala Harris defeated Democratic U.S. Rep. Loretta Sanchez. No Republican made the general election.
“You get in areas that are predominantly Republican or predominantly Democrat, the people on the other side really don’t have a say,” Ball told Brian Lyman of the Montgomery Advertiser. “For special elections, there’s a really low turnout. This might increase participation.”
Ball’s bill, if passed, would take effect after this year’s elections.
Give me a Lyft: Lawmakers took the first step toward passing a bill that would provide uniform rules and regulations statewide for ride-sharing companies like Uber and Lyft. Alabama is one of only a few states that have not statewide regulations.
On Thursday, the Alabama Senate Tourism and Marketing Committee approved the bill.
Cason tweeted that a substitute bill would include changes requested by cities.
Tweet of the day:
Weather has thrown off legislative meeting schedule. Senate convened at 10am with quick series of committee meetings to have bills in position to vote on next week. #alpolitics
— Cam Ward (@DirectorCamWard) January 18, 2018
Brendan Kirby is senior political reporter at LifeZette.com and a Yellowhammer contributor. He also is the author of “Wicked Mobile.” Follow him on Twitter.
