Taxes Levied on Gross Sales and Gross Receipts; Applicable Tax Rates

(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 …

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)

(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…

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)

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)

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)

(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)