Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX

(1) There are two exemptions in the sales and use tax statutes relative to agricultural products sold by the producer. One is found in §§ 40-23-4(a)(5) and 40-23-62(8), Code of Ala. 1975, and the other in § 40-23-4(a)(44)(45), Code of Ala. 1975. A sale of agricultural products th…

(1) For purposes of interpreting references in the sales and use tax statutes to agriculture and agricultural purposes, the term "agriculture" is defined to be the art or science of cultivating the ground, or raising and harvesting crops on land owned or leased by the person who …

(1) In accordance with the guidelines for interpretation outlined in Brundidge Milling Co. v. State, 45 Ala. App. 208, 228 So. 2d 475 (1969); the term "livestock" as used in Title 40, Chapter 23 of Code of Ala. 1975, and in the sales and use tax regulations shall mean cattle, swi…

(1) Beginning on October 1, 2024, and ending on September 30, 2029, up to $25,000 from the sale of fencing materials, such as t-posts, wood posts, barbed wire, net wire, smooth wire, standard metal gates, and other like materials used for the purpose of fencing in agriculture liv…

The Alabama State Bar is an instrumentality of the state (§ 34-3-105, Code of Ala. 1975) and is not subject to sales or use taxes on the property purchased for use in carrying on any activity they are authorized to engage in by law. Author: Dan DeVaughn Notes Ala. Admin. Code r. …

The American National Red Cross is an agency of the United States; its purchases are exempt from the sales and use tax. Author: Dan DeVaughn Notes Ala. Admin. Code r. 810-6-3-.03 Filed September 28, 1982. Statutory Authority: Code of Ala. 1975, §§ 40-23-4(17), 40-23-31, 40-23-83.…

Notes Ala. Admin. Code r. 810-6-3-.03.01

(1) When a dealer sells an automobile, motorcycle, truck, truck trailer, travel trailer, camper, housecar, or semitrailer and delivers it outside Alabama, or outside the city and/or county in which the dealer is located, a portion of the sales tax due may be exempt. Any sales tax…

Notes Ala. Admin. Code r. 810-6-3-.04 Filed September 28, 1982. Repealed by Alabama Administrative Monthly Volume XL, Issue No. 12, September 30, 2022, eff. 11/14/2022. Author: Dan DeVaughn Statutory Authority: Code of Ala. 1975, §§ 40-23-4(3), 40-23-31.

(Repealed). Author: Patricia A. Estes Notes Ala. Admin. Code r. 810-6-3-.05 Filed September 28, 1982. Repealed: Filed June 4, 1998; effective July 9, 1998. Statutory Authority: Code of Ala. 1975, §§ 40-23-4(3), 40-23-31.

(Repealed). Author: Patricia A. Estes Notes Ala. Admin. Code r. 810-6-3-.06 Filed September 28, 1982. Repealed: Filed June 4, 1998; effective July 9, 1998. Statutory Authority: Code of Ala. 1975, §§ 40-23-4(4), 40-23-31.

Notes Ala. Admin. Code r. 810-6-3-.06.01

Notes Ala. Admin. Code r. 810-6-3-.06.02

Notes Ala. Admin. Code r. 810-6-3-.06.03

Boxing and wrestling matches staged by the National Guard in National Guard Armories or on property adjacent thereto controlled by the National Guard are exempted from sales tax where such matches are held in accordance with the provisions of Section 31-2-56, Code of Ala. 1975, a…

(1) Canteens and exchanges of the Alabama National Guard and the Alabama Naval Militia are not required to collect or pay sales tax where: (a) Established and operated in accordance with rules and regulations issued by the Adjutant General and approved by the Governor, and where,…

Notes Ala. Admin. Code r. 810-6-3-.07.01

Notes Ala. Admin. Code r. 810-6-3-.07.02

Notes Ala. Admin. Code r. 810-6-3-.07.03

Notes Ala. Admin. Code r. 810-6-3-.07.04

(1) Unless specifically exempted by statute, charitable and nonprofit organizations and institutions are subject to the sales and use tax levied under Title 40, Chapter 23, Code of Ala. 1975, and related collection, remittance, and reporting requirements. (a) Entities, other than…

(1) The Tax Exemption Reform Act of 2017 (Act 2017-149), amends Section 40-9-12, Code of Ala.1975, and provides that a united appeal fund and any supported charity of the united appeal fund, that holds a valid sales and use tax certificate of exemption as of July 1, 2017, are exe…

Notes Ala. Admin. Code r. 810-6-3-.08 Filed September 28, 1982. Amended: Filed June 4, 1998; effective July 9, 1998. Repealed by Alabama Administrative Monthly Volume XLI, Issue No. 07, April 28, 2023, eff. 6/12/2023. Author: Patricia A. Estes Statutory Authority: Code of Ala. 19…

(1) Chinchillas, hamsters, mice, and rabbits are not livestock and sales of such animals are subject to sales or use tax unless they are products of a farm and sold by the producer or for him by a member of his family or by a person employed to assist in the production thereof. […

Reserved Notes Ala. Admin. Code r. 810-6-3-.10

Cottonseed meal is exempt from sales and use tax when sold for use as a feedstuff for livestock or poultry. It is not exempt as a fertilizer when sold in pure form unmixed with other ingredients. See Rule 810-6-3-.12, Cottonseed Meal Exchanged For Cottonseed. [Sections 40-23-4(a)…

Cotton seed meal exchanged for cotton seed in a transaction taking place at a cotton gin is not subject to sales or use tax. The exchange may be either between the owner of the seed and the ginner or between the owner of the seed and a third party who takes possession of the seed…

Notes Ala. Admin. Code r. 810-6-3-.12.01

(1) Sales of tangible personal property by a federally chartered credit union are exempt from sales tax. A federally chartered credit union is an instrumentality of the Federal Government and, therefore, exempt from tax. (2) Sales of tangible personal property by a state chartere…

(1) The Defense Plant Corporation is an instrumentality of the United States. Sales to this corporation or its agents acting for it are not subject to the sales tax. (2) The purchase order of the agents of this corporation, when making purchases for the use and benefit of the cor…

Sales to county departments of human resources are sales to counties and are exempted from sales and use tax. Sections 40-23-4(a)(11) and 40-23-62(13) Author: Dan DeVaughn Notes Ala. Admin. Code r. 810-6-3-.14 Adopted March 9, 1961. Amended: November 1, 1963. Filed September 28, …

(1) Sales of tangible personal property to the United States government, its departments, or its agencies are exempt from state, county, and municipal sales and use tax provided the sales are billed directly to the United States government and paid for by the United States govern…

The sale to, or use by, a Federal or State chartered credit union of tangible personal property in this State is not subject to sales or use taxes. Author: Dan DeVaughn Notes Ala. Admin. Code r. 810-6-3-.16 Adopted March 9, 1961. Amended: July 27, 1974. Filed September 28, 1982. …

Sales of property to federal production credit associations for use in conducting the activities of such associations as authorized by Federal statutes are not subject to the sales tax; provided, however, this exemption does not apply with respect to any federal production credit…

(1) Alabama sales or Alabama use taxes, whichever may apply, are due on property sold to federal savings and loan associations. (2) The only limitation placed upon the taxation of a federal savings and loan association is that the tax imposed on the federal institution shall not …

(1) Sales of feed for livestock and poultry (not including prepared food for dogs and cats) are exempt from sales and use taxes. (§§ 40-23-4(a)(4) and 40-23-62(7)) (2) The following items qualify for exemption when sold for consumption by livestock or poultry; (a) Stale bread, ta…

(1) Sales of fertilizer when used for agricultural purposes are exempt from sales and use tax. [Sections 40-23-4(a)(2) and 40-23-62(5)] (2) The word "fertilizer" as used in the exemption sections referenced above means any material (not including cottonseed meal when unmixed with…

(1) When a retail purchaser purchases tangible personal property which is exempt from sales tax pursuant to Section 40-23-4(a)(2), (4), or (22) or use tax pursuant to Section 40-23-62(5), (7), or (23); the filing by said purchaser of a certificate in the following form shall reli…

(1) Sales of domesticated fish and minnows produced on farms are exempted from sales and use tax when such sales are made by the producer, a member of his immediate family, or for him by a person employed to assist in the production thereof. (2) Fish and minnows are considered pr…

(1) Sales of nursery stock and floral products by the florist who planted or cultivated, and harvested said items, when the land is owned or leased by the seller, are exempt from sales and use tax. Other sales of nursery stock and floral products by the seller are taxable. (2) A …

(1) Sales of milk and milk products made by milk processors and distributors are subject to sales and use tax. The only exemption for milk and milk products is the producer's exemption. (See Rule 810-6-3-.01, Agricultural Products) (Readopted through APA October 1, 1982) [Section…

(1) The term "food bank" as used in this rule shall mean any entity located within Alabama that is an affiliated food bank of the "America's Second Harvest The Nation's Food Bank Network" or their subsidiary distribution organizations (SDOs). (2) The term "subsidiary distribution…

(1) Sales to a foreign government or to its agents for use of a foreign government are subject to Alabama Sales Tax unless they are immune because of a treaty between the foreign government and the United States. Alabama tax should be collected in the absence of proof that the fo…

Notes Ala. Admin. Code r. 810-6-3-.24.01 New Rule: Filed September 29, 1998; effective November 3, 1998. Amended: Filed November 4, 2003; effective December 9, 2003. Repealed by Alabama Administrative Monthly Volume XXXIII, Issue No. 10, July 31, 2015, eff. 8/5/2015. Author: Ging…

(1) The term "kiln" as used in Code of Ala. 1975, Sections 40-23-4(a)(14) and 40-23-62(15) and in this regulation shall mean an oven, stove, chamber, or other device or enclosure to provide thermal processing of nonmetallic articles or substances in a controlled temperature envir…

(1) Any gas district organized under the provisions of Section 11-50-390 -417, would not be required to report and pay any state or county sales and use taxes on and after September 1, 1965. (2) Gas districts would not be required to pay municipal privilege license tax on and aft…

(Repealed). Author: Dan DeVaughn Notes Ala. Admin. Code r. 810-6-3-.27 Amended: August 16, 1974. Filed September 28, 1982. Repealed: Filed November 5, 1997; December 10, 1997. Statutory Authority: Code of Ala. 1975, §§ 40-2A-7(a)(5), 40-23-31, 40-23-83, 40-23-1(a)(9) b.

Gasoline, liquefied natural gas, compressed natural gas, motor fuel, and lubricants otherwise taxed, are exempted from sales and use taxes as follows: (a) Gasoline and substitutes therefor (not including diesel fuel, tractor fuel, distillate, liquefied gas, compressed gas, kerose…

(1) The gross receipts from sales of grass sod of all kinds and character when in the original state of production or condition of preparation for sale, when such sales are made by the producer or members of this family or for him by those employed by him in the production thereo…

(Repealed). Author: Dan DeVaughn Notes Ala. Admin. Code r. 810-6-3-.30 Filed September 28, 1982. Repealed: Filed June 25, 1998; effective July 30, 1998. Statutory Authority: Code of Ala. 1975, §§ 40-23-4(32), 40-23-31, 40-23-83.