On June 21, 2018, the United States Supreme Court ruled that a state may impose sales tax collection responsibilities on businesses that have no physical presence in the state (remote sellers). See South Dakota v. Wayfair, 138 S.Ct. 2080 (2018).

Due to this ruling, existing provisions in tax laws in many states immediately became effective and out-of-state businesses became obligated to collect sales taxes (primarily from online sales) and remit them to the states to which the products are shipped.

In response to the Supreme Court's decision in South Dakota v. Wayfair, Alabama has implemented regulations that require remote sellers with no physical presence in the state to collect and remit sales tax. Specifically, Alabama's Simplified Sellers Use Tax (SSUT) program, which was in place before the Wayfair decision, was adapted to comply with the ruling. Remote sellers that have an annual sales threshold of more than $250,000 in sales into Alabama are required to collect and remit sales tax or participate in the SSUT program. The SSUT program allows eligible sellers to collect a flat eight percent (8%) sales tax on all sales into the state, regardless of the locality to which the product is shipped. This simplifies the tax collection process for remote sellers by providing a consistent tax rate instead of navigating the various local tax rates within Alabama. Sellers must apply to the Alabama Department of Revenue to participate in the SSUT program and, once accepted, must adhere to the program's guidelines for tax collection and remittance.