Chapter 810-6-1 - GROSS PROCEEDS OF SALES; GROSS RECEIPTS; WHOLESALE SALES, SALES AT WHOLESALE; RETAIL SALES, SALES AT RETAIL; AUTOMOTIVE VEHICLES

(1) Dentists or dental laboratories primarily render professional services and incidentally use tangible personal property in connection therewith. The courts have ruled that dentists are not selling dentures and other prosthetic devices when they transfer such items to their pat…

(1) Where a retailer sells bottled drinks and the sales price includes the deposit on the bottles and sales tax is charged on the total sales price, the amount of the deposit which is refunded on the return of the empty bottles is not subject to sales tax and may be deducted from…

(1) Alabama sales or use tax is due as follows on sales of printed matter by printers who are required, as part of the sales agreement, to mail the printed matter to address located within Alabama that appear on a list furnished to or provided by the printer: (a) The printer is l…

Cash discounts when allowed and taken are not to be included in gross proceeds of sales. § 40-23-1(6). Author: Notes Ala. Admin. Code r. 810-6-1-.53 Statutory Authority: Code of Ala. 1975, §§ 40-23-31, 40-23-83.

Discounts allowed and claimed on the basis of volume sales are deductible from gross sales for sales tax purposes. Such discounts are allowable either on sales as they are made or on accumulated sales totals. § 40-23-1(6). Author: Notes Ala. Admin. Code r. 810-6-1-.54 Statutory A…

(1) Medical doctors are the consumers of supplies, office furniture, office fixtures and special tools and equipment which they use in the practice of their profession. Sales of these items to doctors are taxable retail sales. § 40-23-1(10). (2) Drugs as defined in Code of Ala. 1…

(1) The term "dual business" as used in this rule shall mean a business which both makes retail sales of tangible personal property to the public on a recurring basis and withdraws tangible personal property for use from the same stock of goods. (2) Dual businesses in Alabama sha…

(Repealed). Author: Patricia Estes Notes Ala. Admin. Code r. 810-6-1-.57 Readopted through APA effective October 1, 1982. Repealed: Filed June 25, 1998; effective July 30, 1998. Statutory Authority: Code of Ala. 1975, §§ 40-23-31, 40-23-83.

(1) Electrical supplies including wire, cable, clamps, outlet fixtures, conduit, and switches are building materials which come under the building materials provisions of Sections 40-23-1(a)(10) and 40-23-60(5). Except as outlined in paragraph (2), electrical supplies are taxable…

(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. Welding rods and fluxes which are purchased by manufacturers and compounders and which become a component part of the produc…

(1) The dispensing or transferring of ophthalmic materials, including lenses, frames, eyeglasses, contact lenses, and other therapeutic optic devices, by opticians, optometrists, or ophthalmologists are retail sales subject to sales tax. Such sales are taxable when sold to the ul…

Sales of materials to engravers are at wholesale, tax free, when such materials become a component of the engraving, etc., produced for sale. The machine used by the engraver manufacturing the engravings, etc., is taxable at the machine rate. The supplies, materials, and equipmen…

Notes Ala. Admin. Code r. 810-6-1-.62 Repealed by Alabama Administrative Monthly Volume XXXVI, Issue No. 07, April 30, 2018, eff. 5/24/2018. Author: Statutory Authority: Code of Ala. 1975, §§ 40-2A-7(a)(5), 40-23-1(a)(9) b, 40-23-1(a)(10), 40-23-31, 40-23-83.

The federal taxes required to be paid on single admissions, season tickets, and rental of boxes are not to be included in the measure of Alabama sales tax where such federal taxes are shown as a separate item properly identified on the tickets or receipts given to the person payi…

(1) A manufacturer's federal excise tax may not be excluded from the measure of sales or use tax. (2) Manufacturer's federal excise taxes become another overhead business expense to the retailer which he can take into consideration, together with other business expenses, in deter…

(1) A federal excise tax which a retailer must collect from his customer as a tax and remit directly to the federal government may be excluded from the measure of sales or use tax only if it is measured by the value of the articles sold at retail and it is billed to the customer …

(1) Fencing materials of all kinds including fence posts, fence wire, and fence accessories are building materials, the sales of which are at retail and subject to tax when made to the person who will attach the fencing materials to real property. Where the person who makes the i…

When florists sell through a telegraphic delivery association the following rules will apply: (a) Alabama florists are liable for sales tax measured by total receipts resulting from orders taken by them for transmittal to a second florist who makes delivery either within or witho…

(Repealed). Author: Patricia Estes Notes Ala. Admin. Code r. 810-6-1-.68 Readopted through APA effective October 1, 1982. Repealed: Filed June 25, 1998; effective July 30, 1998. Statutory Authority: Code of Ala. 1975, § 40-23-31.

(1) The term "label" as used in Sections 40-23-1(a)(9) b, 40-23-1(a)(9) c, 40-23-60(4) b, and 40-23-60(4) c, Code of Ala. 1975, and in this rule shall mean a tag or sticker of any material imprinted with information. The term "label" includes price stickers, address stickers, and…

(Repealed). Author: Patricia Estes Notes Ala. Admin. Code r. 810-6-1-.70 Adopted January 20, 1966. Readopted through APA effective October 1, 1982. Repealed: Filed June 25, 1998; effective July 30, 1998. Statutory Authority: Code of Ala. 1975, §§ 40-23-31, 40-23-83.

(Repealed). Author: Notes Ala. Admin. Code r. 810-6-1-.71 Repealed: Filed December 23, 1997; effective January 27, 1998. Statutory Authority:

(1) All sales to consumers such as dentists, doctors, private hospitals, manufacturers, refiners, repairmen, welders, or junk dealers of acetylene, oxygen, hydrogen, and other gases for use in rendering professional medical services or in manufacturing, processing, or repairing a…

Sales at retail of propane and butane gases or any similar gas are subject to sales or use tax, whichever may apply. § 40-23-1(10). Author: Notes Ala. Admin. Code r. 810-6-1-.73 Statutory Authority: Code of Ala. 1975, §§ 40-23-31, 40-23-83.

(Repealed). Author: Patricia A. Estes Notes Ala. Admin. Code r. 810-6-1-.74 Repealed: Filed June 4, 1998; effective July 9, 1998. Statutory Authority: Code of Ala. 1975, §§ 40-2A-7(a)(5), 40-23-1(a)(10), 40-23-31, 40-23-83.

(1) The terms "gratuity" and "tip" as used in this rule shall mean a monetary amount paid by a customer in a bar, restaurant, or similar establishment usually in return for or in anticipation of some service. While a gratuity or tip is generally thought of as a voluntary monetary…

(1) Private hospitals, infirmaries, sanitariums, and like institutions are required to pay sales tax or use taxes, whichever may apply, on their purchases of tangible personal property. (Sections 40-23-2 and 40-23-61, Code of Ala. 1975). (2) Private hospitals, infirmaries, sanita…

Author: Notes Ala. Admin. Code r. 810-6-1-.77 Repealed: Filed November 23, 1998; effective December 28, 1998. Statutory Authority: Code of Ala. 1975, §§ 40-23-31, 40-23-83.

(1) Sales of ice to purchasers who have a sales tax license number are sales at wholesale not subject to sales or use tax, provided the purchaser is buying the ice of resale. (Sections 40-23-1(a)(9) a and 40-23-60(4) a). (2) Sales of ice to purchasers for use as an ingredient of …

(Repealed). Author: Dan DeVaughn Notes Ala. Admin. Code r. 810-6-1-.78 Repealed: Filed February 3, 1998; effective March 10, 1998. Statutory Authority: Code of Ala. 1975, §§ 40-2A-7(a)(5), 40-23-31, 40-23-83.

(Repealed). Author: Dan DeVaughn Notes Ala. Admin. Code r. 810-6-1-.79 Repealed: Filed February 3, 1998; effective March 10, 1998. Statutory Authority: Code of Ala. 1975, §§ 40-2A-7(a)(5), 40-23-31, 40-23-83.

When a lessee is required under a contract lessor to reimburse the lessor for the depreciated value of any item lost or not returned by the lessee, the transaction is not a retail sale; therefore, no sales tax is due. (See State of Alabama v. Industrial Uniform Services Inc.) Aut…

(1) Subject to the qualifications outlined in paragraph (2), tangible personal property which is purchased by a manufactured or compounded and which enters into and becomes an ingredient or component part of the final product manufactured or compounded for sale may be purchased a…

Oils used in the hot or cold aluminum rolling processes have been determined to remain on and become an ingredient or component part of the rolled aluminum and, therefore, subject to the criteria outlined in Sales and Use Tax Rule 810-6-1-.80 entitled ingredient or Component of P…

Materials, including grease and other petroleum products, purchased by manufacturers or compounders for use as a rust preventative or a protective coating for metal products while in storage or in shipment are exempt from sales or use tax when they remain on the final product man…

(1) Where the quoted or advertised price is a lump sum for both property and installation or where billing and other records do not show separate charges for property and for installation, the measure of the tax is the total amount received by the seller. (2) Where the seller has…

(1) Further, these interior decorators must collect sales tax from their clients on their retail sales of tangible personal property and remit the tax to the Department of Revenue. Out-of-state interior decorators and interior designers, who do not have a place of business in Ala…

(Repealed). Author: Patricia Estes Notes Ala. Admin. Code r. 810-6-1-.82 Filed August 22, 1989; December 22, 1989. Filed April 21, 1992; August 20, 1992. Repealed: Filed June 25, 1998; effective July 30, 1998. Statutory Authority: Code of Ala. 1975, § 40-23-31, 40-23-83.

(Repealed). Author: Patricia Estes Notes Ala. Admin. Code r. 810-6-1-.83 Filed August 22, 1989; December 22, 1989. Filed April 21, 1992; August 20, 1992. Repealed: Filed June 25, 1998; effective July 30, 1998. Statutory Authority: Code of Ala. 1975, §§ 40-23-31, 40-23-83.

(1) The term "new or different" as used in this rule shall mean new or different insofar as the ultimate purchaser is concerned. The fact that work may be performed at various stages before an item is ready for use by the ultimate purchaser does not mean that the item is not a ne…

(1) Laundries and dry cleaning establishments in washing, dry cleaning, dying, pressing and otherwise reconditioning clothing, curtains, drapes, linens, rugs and other articles are performing a service which is not subject to the sales tax. (2) The materials, supplies, and equipm…

(Repealed). Author: Patricia Estes Notes Ala. Admin. Code r. 810-6-1-.86 Readopted through APA effective October 1, 1982. Repealed: Filed June 25, 1998; effective July 30, 1998. Statutory Authority: Code of Ala. 1975, § 40-23-31.

Lawyers use law books, supplies, and equipment, which books, etc., are taxable. 40-23-2(1) Author: Notes Ala. Admin. Code r. 810-6-1-.88 Statutory Authority: Code of Ala. 1975, § 40-23-31.

Transfers of property constitute sales when made under lease-sale or retention-of-title contracts where these contracts contemplate transfer of ownership when all of the agreed upon payments have been made. § 40-23-1(5). Author: Notes Ala. Admin. Code r. 810-6-1-.89 Statutory Aut…

(1) Sales to dealers at wholesale. Sales of tangible personal property are sales at wholesale, not subject to tax, when made to a licensed dealer to be put into the stock of goods offered for sale by the dealer, not withstanding the fact that the dealer may occasionally or habitu…

(1) Sales of property manufactured or fabricated by machine shops and custom foundries are subject to sales or use tax, except when the sale is for resale or otherwise specifically exempted. (2) In doing repair work the machine shop operator consumes materials such as paint, sold…

Where persons contract to manufacture, compound, process or fabricate their materials into articles of tangible personal property according to the special order of their customers, the total receipts from the sales of such articles are subject to the sales or use tax, whichever m…

(Repealed). Author: Dan DeVaughn Notes Ala. Admin. Code r. 810-6-1-.92 Repealed: Filed February 3, 1998; effective March 10, 1998. Statutory Authority: Code of Ala. 1975, §§ 40-2A-7(a)(5), 40-23-1(a)(10), 40-23-2(3), 40-23-31, 40-23-83.

Pattern makers who make patterns which they sell to others for use, purchase at wholesale tax free the materials from which such patterns are made. Author: Notes Ala. Admin. Code r. 810-6-1-.93 Statutory Authority: Code of Ala. 1975, § 40-23-31.

(1) Materials purchased by a person, firm, or corporation for use in further processing or manufacturing tangible personal property not owned by the person, firm, or corporation but owned by a manufacturer or a compounder are exempt from the sales and/or use tax when the tangible…