Gross Proceeds of Sales; Gross Receipts; Wholesale Sales; Sales at Wholesale; Retail Sales, Sales at Retail; Automotive Vehicles

(1) Retail Sales. Retail sales of radio and television antennas, television satellite dishes, and their parts and attachments are subject to sales or use tax (a) When antennas and satellite dishes, along with their parts and attachments are sold for a lump sum amount that include…

(1) Retail sales of an auctioneer’s own tangible personal property or the consigned tangible personal property of others are subject to Sales Tax. (2) For the purposes of this rule auctioneers are deemed to have tangible personal property on consignment when they receive payment …

(1) The painting of an automotive vehicle is a service by the painter that is not taxable. (2) The paint and other supplies used or consumed by the painter are taxable at the time of purchase. Refer to Rule 810-6-1-.116 entitled Parts and Materials Used to Repair or Recondition D…

(1) Parts used in making repairs to the customer's automotive vehicle or sold to the customer for use that are passed substantially intact as purchased by the repairman are sold at retail to the customer. Examples of such parts are pistons, piston rings, fan belts, gears, batteri…

(1) Automotive supply jobbers must comply with Title 40 by maintaining the records necessary to determine the amount of their sales or use taxes liability. Title 40 includes the requirement that their records show the gross proceeds of wholesale sales and the gross proceeds of re…

(1) An upholsterer renders a service and sells tangible personal property. Materials used or consumed by the upholsterer that are not passed to the customer are considered supplies and are taxable at the time of purchase by the upholsterer. Materials passed to the customer that e…

(1) Sales of meals, snacks, drinks, and beverages, to passengers by railroads, airlines, steamships, and other transportation companies within this state are subject to sales tax, provided the meals, snacks, drinks, or beverages are served to the passengers while still in Alabama…

Lunches sold within school buildings, not for profit, to school children are exempted from the sales tax. This exemption is construed to mean sales of lunches to pupils of kindergartens, grammar, and high schools, either public or private.

Sales of prepared foods and drinks of all kinds for consumption on or off the premises of the seller are subject to the sales tax, which tax must be collected and remitted by the seller, except as otherwise stated in Sales and Use Tax Rules 810-6-1-.99 Meals Served By Boarding Ho…

The microfilming of records is a service transaction with the material cost being incidental to the transaction. Sales and/or use tax will be due on films, equipment, and other supplies purchased for use in microfilming records. (Legal Division Opinion 2/10/78) (Adopted June 12, …

(1) The Alabama Supreme Court has interpreted the language relative to modular buildings in Sections 40-23-1(a)(10) and 40-23-60(5), Code of Ala. 1975, as “designed to make the sale of materials going into the construction of such buildings subject to the tax and to exempt the sa…

(1) Monuments, memorial stones, grave markers, or other similar decorative or commemorative objects, collectively referred to in this rule as monuments, are building materials. Sales of monuments to the person who installs or erects them to realty are retail sales. The person who…

(1) Movie theater operators owe sales or use tax on all of the equipment, furniture, fixtures and supplies used by them in operating their businesses. Movie film and advertising materials, including trailers and posters, are subject to tax to be measured by the purchase price whe…

Name plates attached by the manufacturer to the manufacturer’s products for identification purposes are purchased at wholesale as a component part of the property manufactured for sale. §40-23-1(9c).

(1) A newspaper is printed matter which is distributed to the public generally. It is in sheet form, is published at regular or short intervals, and contains information of current events and news of general interest. In addition, a newspaper carries advertising and by editorial …

(1) Sales of newspapers are subject to sales tax except when made at wholesale to dealers licensed in accordance with the provisions of Code of Ala. 1975, §40-23-6, as amended, or when made to the United States, the State of Alabama, or the counties or cities of the state. (2) Sa…

Property acquired for use or consumption may be sold tax free at a private sale completely disassociated from any retail business which may be operated by the seller. (Attorney General Opinion Price, May 12, 1937.)

(1) Signs are subject to tax on the full sales price when such signs are standard, prefabricated by the seller or his supplier and delivered as a complete unit. (2) When the signs are custom built into a building or otherwise affixed to real property, they come within the buildin…

Outside signs furnished by a manufacturer to his customers, when such signs are furnished without cost to the customers, are subject to the sales or use tax when purchased by the manufacturer. These signs are not purchased to be resold, nor are they purchased as a component of th…

(1) Persons doing any kind of painting where the only tangible personal property supplied by them is the paint which they apply and the equipment, brushes, and supplies used in such application are primarily rendering a service and not making retail sales. The receipts from such …

(1) When a licensed automotive vehicle dealer makes purchases of parts and materials to repair or recondition vehicles held in the dealer’s inventory for sale, the purchases are tax free if the parts or materials become a part of the vehicle that will later be sold and taxed on t…

Pawnbrokers are required to file sales tax returns covering all property sold by them, including in the taxable retail sales reported sales of property forfeited to them by reason of the pawner's failure to redeem. §40-23-2(1).

(1) Peddlers and/or truckers making retail sales of tangible personal property must apply for and obtain a sales tax license. Further, such peddlers and truckers must collect sales tax from their customers on their retail sales of tangible personal property and remit same to the …

(1) The retail sales of photographs, blueprints and other similar articles are subject to sales or use tax, whether delivered in final printed form or delivered in digital form via telephone lines, over the Internet, by e-mail, or by another alternative form of transmission. The …

1. The term "automotive vehicles" as used in the Sales and Use Tax laws shall mean and include, but shall not be limited to, automobiles, trucks, buses, tractors (crawler and pneumatic tired types), motorcycles, motorscooters, automotive industrial trucks, Ross Carriers, lift tru…

(1) A courtesy delivery for an out-of-state automotive vehicle dealer occurs when: (a) The out-of-state dealer sells an automotive vehicle to a customer and arranges for the vehicle to be shipped to an in-state dealer for delivery to a designated person in Alabama. (b) The in-sta…

When a manufacturer of iron pipe withdraws pig and scrap iron from his raw materials stock to be used by him in casting machine parts for his use, he must add the cost of such materials into his gross proceeds of sales. (Issued January 1951.)

Ordinarily pipe fittings are used by builders, contractors, or landowners as building materials which are taxed in accordance with the building material provision found in the definition of retail sales. In some instances, however, pipe fittings are used as standard parts or atta…

(1) The total receipts accruing from the operation of places of amusement or entertainment are subject to the sales tax. Taxable gross receipts from places of amusement shall include receipts from admissions, service charges, amusement devices, musical devices, amounts paid to pa…

(1) The term "golf course open to the public" as used in this regulation shall mean any golf course, except those owned and operated by the State of Alabama or a county or incorporated municipality of the State of Alabama, which allows the public to use one or more of its facilit…

Materials used in the construction of pole lines for the transmission of electric power and telephone, telegraph, radio, and television signals are building materials. These materials are purchased at retail subject to sales or use tax, whichever may apply, by the persons who ere…

(1) Effective November 14, 1983, the U.S. Postal Service's procedures regarding uniform purchases for postal employees require vendor invoices to be made out directly to the Postmaster who, upon approval of the purchase by the employee, forwards the invoices to the Postal Data Ce…

A sale of tangible personal property is taxable when made to a person who will use the property as a prize or a premium or will give the property away as a gift. §40-23-1(10).

(1) Generally an awning attached to a building as a permanent fixture is a part of the building and comes within the provisions of the building materials provision of §40-23-1(a)(10). (2) A metal or other permanent type of awning attached to a building with screws or bolts or oth…

(1) Gross receipts accruing from the retail sales of printed matter of all kinds are subject to the sales tax. (Also see Rule 810-6-1-.137 entitled Raw Materials and Supplies Purchased By Manufacturers and Compounders.) (2) Sales to consumers of printed matter such as catalogs, b…

(1) Except as noted in paragraphs (2) and (3) below, manufacturers, compounders, and processors shall include in taxable sales reported for sales tax purposes the costs of materials purchased at wholesale which have become ingredients or components of products manufactured or com…

Sales of materials to the processors of the proofs are at wholesale, tax free, when such materials become a component part of the proofs produced for sale. §40-23-1(9b).

(1) A contractor who installs a pump for a county or incorporated municipality of the State of Alabama is required to pay tax on his purchase of the pump. The pump is in the same category as any other building materials which become affixed to realty. When title to a pump install…

Well pumps when installed become realty along with well casing, pump house, well connections, etc. The person who installs the pump is the purchaser at retail who must pay sales tax or use tax, as the case may be. §40-23-1(10).

(1) Subject to the criteria outlined in Sales and Use Tax Rule 810-6-1-.80 entitled Ingredient or Component of Product Manufactured or Compounded for Sale, ingredients or materials which are purchased by manufacturers or compounded for sale may be purchased at wholesale, tax free…

(1) The rebuilding of tracks, idlers, and rollers belonging to others is a service and the receipts from this service by the repairman-dealer are not subject to sales or use tax. (2) Sales of rebuilt tracks, idlers, and rollers by the repairman-dealer are subject to sales or use …

Recordings purchased for use in operating musical devices are subject to sales or use taxes whichever may apply. When such recordings have served their purpose in connection with the operation of musical devices and are sold at retail as used recordings as a regular course of bus…

(1) The operator of a repair shop who sublets a part or all of a repair job purchases at wholesale tax free the repair parts installed by the outside or sub-repairman. The shop operator shall bill such repair parts to his customers separately from any charges for labor and servic…

(1) Where a repairman in Alabama repairs equipment, materials which pass to the repairman's customer but which lose their identity when used by the repairman or which are inconsequential in amount such as, paint, solder, and tacks are considered to have been used or consumed by t…

(1) The term “repairs to real property” as used in this rule includes, but is not limited to, the repairing, remodeling, restoring, or altering of buildings of all kinds and descriptions, plumbing systems, electric supply systems, water supply systems, central heating and air con…

(1) Tire repairmen shall collect and remit sales tax on total charges for recaps, retreads, and the major repairs; such as sectional, reinforcement, and spot repairs. Materials used in recapping, retreading, and major repairing are purchased at wholesale, tax free. Machines used …

All buyers of property for resale purposes are entitled to purchase at wholesale, tax free, the property they resell as regular course of business when they have secured the sales tax license required by law. This rule also applies to retailers located outside Alabama when they h…