Sales Tax:  The Wholesale to Retail Accountability Program

Act 2017-294 establishes the Wholesale to Retail Accountability Program or WRAP. The WRAP legislation requires new information be provided to the Alabama Department of Revenue in four areas:

• Duplicate information reporting from reporting entities as defined in Section 6050W of the Internal Revenue Code (1099K’s) are due to the department before April 30 each year, beginning April 30, 2018.
• Beginning July 1, 2018, distributors of beer and wine in Alabama must electronically file monthly information reports on sales for resale purposes made within this state on which sales or use tax was not collected from retailers.
• Effective July 1, 2018, sellers of tobacco products already filing an information report will be required to provide additional information on that report.
• October 1, 2019, information on municipal business privilege license applications is to be submitted monthly to the department.

In order to implement the legislation and provide guidance to ALDOR, an industry advisory group was established. This group was made up of representatives from industry and local government who worked together to ensure that the concerns of all interested parties were discussed and considered.

Effective July 1, 2018, Act 2017-294 requires each licensed beer or wine distributor (seller) to file an informational monthly report of any beer or wine sales made to retail licensees for which an exemption from sales or use tax collection was claimed at the time of the sale. A “seller” is a manufacturer, wholesaler, or distributor of beer, wine or tobacco products who sells to a retailer (licensee) in this state. The term also includes a wholesale club or warehouse club that sells tobacco or alcohol under a membership.

The first informational monthly report will cover sales occurring on or after July 1, 2018 through July 31, 2018 and is due on or before August 20, 2018. For each month after, the informational report will be due on or before the 20th day of the month next succeeding the month in which sales occur.

Notices

• New 1099-K Filing Requirement (02/02/2018)
• Amendment to Report of All Tobacco Sales for Resale (SFR) (02/22/2018)
• New Informational Report and Reporting Requirements for Beer and Wine (03/21/2018)
• ABC License Numbers and the New WRAP Informational Report (03/30/2018)
• Instructions for Filing the Tobacco Sales for Resale Report (11/05/2018)
• Municipal Business License Report & Reporting Requirements (11/26/2018)

Resources

• Upload File Specifications for Beer & Wine Wholesalers (updated 05/02/18)
• Beer and Wine Sales For Resale Upload Template (updated 05/02/18)
• Rule 810-6-5-.37  Procedures for Beer and Wine Distributors Reporting Sales of Beer and Wine for Resale in this State.

Contact

• Email –  WRAP@revenue.alabama.gov
• Telephone –  334-353-0440