Chapter 810-6-2 - TAXES LEVIED ON GROSS SALES AND GROSS RECEIPTS; APPLICABLE TAX RATES

Sales of materials to printers are at wholesale, tax free, when such materials become a component of the printed matter produced for sale. The machines used in the printing come within the machine levy and are taxed at the 1 1/2% rate. The supplies, materials, and equipment not b…

Gross receipts accruing from the retail sales of proofs sold to printers, publishers or others, which are used to make negatives to produce plates for offset printing, are subject to the sales tax at the machine rate of 1 1/2%. The machines used by the processor in the processing…

Pumps when used in mining are taxed at the special machine rate of 1 1/2%. § 40-23-2(3) Author: Notes Ala. Admin. Code r. 810-6-2-.72 Statutory Authority: Code of Ala. 1975, §§ 40-23-31, 40-23-83.

Rail bonds used in the construction and maintenance of mine tracks used in bringing minerals to the surface of the earth are taxed at the special machine rate of 1 1/2%. This provision does not, however, extend to rail bonds used in the construction and maintenance of trucks used…

Machines when sold to, or for use by, railroad companies in maintaining, repairing or reconditioning their equipment are subject to the sales or use tax at the general rate of 4%. § 40-23-2(1) Author: Notes Ala. Admin. Code r. 810-6-2-.74 Statutory Authority: Code of Ala. 1975, §…

(1) Railroad rails are taxable at the general rate of 4% when used as a roadway for transportation equipment or for general purposes not described in the next paragraph. (2) Railroad rails are taxed at the special machine rate of 1 1/2% when used as a roadway for quarrying or min…

Mine rails used in the construction and maintenance of tracks used in removing minerals from the earth are taxed at the special machine rate of 1 1/2%. This provision does not, however, extend to rails used in the construction or maintenance of tracks used in transporting mineral…

(Repealed 11/3/98) Author: Patricia Estes Notes Ala. Admin. Code r. 810-6-2-.76 Repealed: Filed September 29, 1998; effective November 3, 1998. Statutory Authority: Code of Ala. 1975, §§ 40-23-31, 40-23-83.

(Repealed 11/3/98) Author: Patricia Estes Notes Ala. Admin. Code r. 810-6-2-.77 Repealed: Filed September 29, 1998; effective November 3, 1998. Statutory Authority: Code of Ala. 1975, §§ 40-23-31, 40-23-83.

(1) When repairs require service only or service with the use of an inconsequential amount of materials, the amount received is not subject to tax. (2) When materials and service are used in repairing machines taxed at the special machine rate and when there is no separation in t…

(1) Parts and attachments furnished by repairmen in reconditioning or repairing electric motors and electric generators are sold by the repairmen to the owners of the motors and generators. The repairman's sales of repair parts, such as ball bearings, brushes and wire used in rew…

Resales of automotive vehicles repossessed by the seller or for him by a finance company are taxable measured by the gross proceeds of the resales thereof less credit for any automotive vehicle accepted as part-payment of the sales price of the vehicle so resold. Author: Notes Al…

(1) Restaurants and cafeterias are considered to be processors and compounders of food products for sale; therefore, they are entitled to purchase machines used in processing and compounding at the reduced rate of 1 1/2%. (2) The machines falling in this category include, but are…

Notes Ala. Admin. Code r. 810-6-2-.79.05 Repealed by Alabama Administrative Monthly Volume XL, Issue No. 09, June 30, 2022, eff. 8/14/2022. Author: Statutory Authority: Code of Ala. 1975, §§ 40-23-31, 40-23-83.

(Repealed). Author: Patricia A. Estes Notes Ala. Admin. Code r. 810-6-2-.86 Readopted through APA effective October 1, 1982. Repealed: Filed June 4, 1998; effective July 9, 1998. Statutory Authority: Code of Ala. 1975, §§ 40-2A-7(a)(5), 40-23-83. 40-23-26, 40-23-31.

Machines and equipment used by manufacturers for conditioning and transporting, while in process, sand for use in mold making are taxed at the special machine rate of 1 1/2%. (§ 40-23-2(3) Author: Notes Ala. Admin. Code r. 810-6-2-.87 Statutory Authority: Code of Ala. 1975, §§ 40…

(1) Equipment manufactured for and customarily used in removing sawdust from saws in saw mills is taxed at the special machine rate of 1 1/2% when such equipment is a part or attachment of the sawing mechanism. (2) The same rule applies to equipment manufactured for and customari…

A school bus purchased by an individual for use under direction of and control of a board of education is subject to tax. § 40-23-1(10) Author: Notes Ala. Admin. Code r. 810-6-2-.88.02 Statutory Authority: Code of Ala. 1975, §§ 40-23-31, 40-23-83.

(1) Except as outlined in paragraph (2), retail sales of tangible personal property made by all schools and colleges owned and operated by the State of Alabama are subject to sales tax. (2) Sales by elementary or secondary schools owned and operated by the State of Alabama are ex…

(1) The term " elementary or secondary school" as used in Act No. 96-653 and in this regulation shall mean both public and private schools where the curriculum consists of one or more of grade levels K through 12. The term " elementary or secondary school" shall mot include nurse…

A scrap metal shredder that will take such items as junk automobile bodies and through a series of magnetically operated devices separate the metal from the nonmetal items, shred the metal, and hydraulically compress it into blocks of certain sizes to specifications so that it ca…

(Repealed 11/3/98) Author: Patricia Estes Notes Ala. Admin. Code r. 810-6-2-.90 Repealed: Filed September 29, 1998; effective November 3, 1998. Statutory Authority: Code of Ala. 1975, §§ 40-23-31, 40-23-83.

(1) Under certain conditions, an out-of-state seller engaged within this state in the business of selling at retail tangible personal property is required to register with the Department for a sales tax license and collect and remit sales tax on all sales made within the state as…

(1) Unless otherwise defined herein, the definitions of terms set forth in § 40-23-191, Code of Ala. 1975, are incorporated by reference herein. (2) The term "eligible seller" shall mean (a) A seller that sells tangible personal property or a service, but (i) Does not have a phys…

(1) An out-of-state seller who is making retail sales of tangible personal property into the state is required to register with the Department and to collect and remit tax pursuant to Section 40-23-67, Code of Ala. 1975, when the seller's retail sales of tangible personal propert…

(1) For the purpose of this rule, the following terms shall have the following meanings: (a) Department: The Alabama Department of Revenue. (b) Simplified Sellers Use Tax Remittance Program ("SSUT Program"): As defined in § 40-23-191, Code of Ala. 1975. (c) Simplified Sellers Use…

Notes Ala. Admin. Code r. 810-6-2-.91 Repealed by Alabama Administrative Monthly Volume XL, Issue No. 05, February 28, 2022, eff. 4/14/2022. Author: Statutory Authority: Code of Ala. 1975, §§ 40-23-31, 40-23-83.

Soft drink bottlers are engaged in manufacturing and compounding and, therefore, shall pay sales or use tax at the machine rate on the machines purchases and used directly in manufacturing and compounding. They shall also purchase at wholesale, tax free, the ingredients of the dr…

(1) The counties and cities of the State of Alabama and the agencies and the instrumentalities thereof are not required by the provisions of the Sales Tax Law to collect or to pay the Department of Revenue sales tax because of sales of tangible personal property made by them, exc…

Steel plate is taxable at the 1 1/2% machine rate when made into a tank at the site when the tank becomes a part of machinery used in manufacturing or processing. § 40-23-2(3) Author: Notes Ala. Admin. Code r. 810-6-2-.93 Statutory Authority: Code of Ala. 1975, §§ 40-23-31, 40-23…

(1) Storage tanks in or at manufacturing plants are subject to tax at the general rate of 4%. Piping leading to and from the storage tanks is also taxed at the 4% rate. (2) Tanks which are connected into a processing system for the purpose of maintaining a suitable flow of materi…

(Repealed). Author: Patricia A. Estes Notes Ala. Admin. Code r. 810-6-2-.94.04 Adopted March 9, 1961. Amended: November 1, 1963. Readopted through APA effective October 1982. Repealed: Filed June 4, 1998; effective July 9, 1998. Statutory Authority: Code of Ala. 1975, §§ 40-2A-7(…

In maintaining and making repairs of machines and equipment used in mining, replacement parts specifically manufactured for use on such machines are taxed at the special machine rate of 1 1/2% when the machines themselves are entitled to the special rate. § 40-23-2(3) Author: Not…

Switchboards and other electrical equipment used in controlling the flow of electric power into manufacturing plants and mines are taxed at the general rate of 4%. (Adopted March 9, 1961, amended November 1, 1963, effective July 1, 1963) § 40-23-2(1) Author: Notes Ala. Admin. Cod…

Tanks which are part of a chain of processing operations are taxed at the special machine rate of 1 1/2% when such tanks are purchased prefabricated and require no more than installation at the site. § 40-23-2(3) Author: Notes Ala. Admin. Code r. 810-6-2-.97 Statutory Authority: …

(1) Amplifiers used in broadcasting by television, cable TV, and radio stations are machines used in processing of tangible personal property. State of Alabama v. The Television Corporation, 271 Ala. 692, 127 So. 2d 603, Mountain Brook Cablevision, Inc., v. State of Alabama, CV-8…

Tool steel is taxed at the special machine rate of 1 1/2% when used as a part or an attachment for a machine used in mining or quarrying even though it may require some fabrication by the mine or quarry operator to adapt it for use on his equipment. § 40-23-2(3) Author: Notes Ala…