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

Notes Ala. Admin. Code r. 810-6-3-.31 Adopted January 1, 1966. Filed September 28, 1982. Amended: Effective March 24, 1993. Repealed by Alabama Administrative Monthly Volume XLI, Issue No. 07, April 28, 2023, eff. 6/12/2023. Author: Dan DeVaughn Statutory Authority: Code of Ala. …

(1) A historical preservation authority organized pursuant to Article 5 of Chapter 10 of Title 41, Code of Ala. 1975, as amended, is exempt from the payment of sales and use tax on any tangible personal property purchased by the authority provided the purchases are made in the na…

(1) An industrial development board created by an incorporated municipality within the State of Alabama pursuant to Article 4 of Chapter 54 of Title 11, Code of Ala. 1975, as amended, is exempt from sales and use tax on any tangible personal property purchased by the board or its…

(1) The term "insecticides" means any substance or mixture of substances which are used for the preventing, destroying, repelling, or mitigating of any insects. The term "insect" means flies, mites, spiders, ticks, nematodes, and destructive worms and grubs as well as those small…

Sales tax is due by the seller in Alabama who accepts an order which he fills by having an out-of-state supplier ship the goods ordered, F.O.B. supplier's out-of-state shipping point, to the buyer in Alabama and the seller's supplier renders his invoice to the seller in Alabama a…

Where a resident contractor purchases materials from an Alabama dealer with the provision that the materials be delivered outside of Alabama by the seller for the contractor's use outside of Alabama, the sale is in interstate commerce and is exempt from the tax. Author: Dan DeVau…

(1) Sales are considered to be made outside Alabama and cannot be taxed by the Alabama Sales Tax Law where: (a) The seller is required by the sales agreement to deliver the goods outside the state in the seller's equipment, or (b) The seller delivers the goods to a common carrier…

(1) Liquefied petroleum gas, liquefied natural gas and compressed natural gas sold to be used for agricultural purposes are exempt from sales tax. (2) Liquefied petroleum gas, liquefied natural gas and compressed natural gas sold to hatcheries for use as fuel for heaters used to …

The sale of liquefied petroleum gas sold for use as motor fuel is exempt from sales tax provided the purchaser has secured the required permit which is issued by the Liquefied Petroleum Gas Board and displays the decal issued by the Board on the vehicle. Author: Dan DeVaughn Note…

Notes Ala. Admin. Code r. 810-6-3-.37 Filed September 28, 1982. Repealed by Alabama Administrative Monthly Volume XLI, Issue No. 04, January 31, 2023, eff. 3/17/2023. Author: Dan DeVaughn Statutory Authority: Code of Ala. 1975, §§ 40-23-4(5), 40-23-31.

Notes Ala. Admin. Code r. 810-6-3-.37.01 Filed September 28, 1982. Repealed by Alabama Administrative Monthly Volume XL, Issue No. 09, June 30, 2022, eff. 8/14/2022. Author: Dan DeVaughn Statutory Authority: Code of Ala. 1975, §§ 40-23-2(1), 40-23-31.

Notes Ala. Admin. Code r. 810-6-3-.37.02 Filed September 28, 1982. Repealed: Filed June 25, 1998; effective July 30, 1998. New Rule: Filed March 25, 2002; effective April 29, 2002. Amended: Filed January 19, 2006; effective February 23, 2006. Repealed: Filed January 6, 2012; effe…

(1) Medicaid Covered Products Paid by the State.(a) Eyeglasses, durable medical equipment, prosthetic and orthotic devices, and medical supplies as defined and covered under the Medicare program furnished to Medicaid recipients are exempt from sales, use, or rental and leasing ta…

(1) A medical clinic board created pursuant to Chapter 58 of Title 11, Code of Ala. 1975, is exempt from sales or use tax on any tangible personal property purchased by the board or its duly authorized agents, provided the purchases are made in the name of the board, the board's …

Any sale of property to motor freight lines is subject to the sales tax where the property is delivered in Alabama by a seller doing business in Alabama. This is true even though the purchase order may have been given out of state to an out-of-state branch of the seller and even …

Notes Ala. Admin. Code r. 810-6-3-.39.01

Notes Ala. Admin. Code r. 810-6-3-.39.02 Filed September 28, 1982. Repealed by Alabama Administrative Monthly Volume XLI, Issue No. 02, November 30, 2022, eff. 1/14/2023. Previous Rule 810-6-3-.39.02 was renumbered .39 per certification published November 30, 2022; effective Janu…

Sales of property to a municipal housing authority for use by such authority in construction, repair, or maintenance of its property are sales to an agency of a city and exempted from the sales tax. Author: Dan DeVaughn Notes Ala. Admin. Code r. 810-6-3-.40 Filed September 28, 19…

(1) Chapter 62 of Title 11, Code of Ala. 1975, as amended, provides for the incorporation and operation of municipal special health care facility authorities. (2) Section 11-62-18(d) exempts from sales and use tax any purchase of tangible personal property used in the constructio…

(1) The term "health care authority" as used in this rule shall mean any public corporation organized pursuant to Article 11 of Chapter 21 of Title 22, Code of Ala. 1975, and any public hospital corporation reincorporated pursuant to Article 11 of Chapter 21 of Title 22, Code of …

(1) The definitions of the terms "appointing government," "improvements," and "public person" contained in Section 11-99A-2, Code of Ala. 1975, are incorporated into this rule by reference. (2) The term "improvement district" as used in this rule shall mean a district created pur…

National farm loan associations are instrumentalities of the United States and are not subject to sales or use taxes on the property purchased by them for use in carrying on any activity they are authorized to engage in by Federal Law. Author: Dan DeVaughn Notes Ala. Admin. Code …

Notes Ala. Admin. Code r. 810-6-3-.42.01

(1) Other than the exceptions noted in (2) and (3) below, sales to nonresidents are sales at retail subject to the tax even though such purchasers claim that the property purchased is for use outside of Alabama, except where the seller delivers the property outside Alabama or to …

(1) (a) Effective January 1, 2016, sales of automobiles, motorcycles, trucks, truck trailers, or semitrailers that will be registered or titled outside Alabama, that are exported or removed from Alabama within 72 hours by the purchaser or purchaser's agent for first use outside A…

(1) The gross proceeds of the sales of seedlings, plants, shoots and slips which are to be used for planting vegetable gardens or truck farms and other agricultural purposes are exempt from sales and use tax. [Section 40-23-4(a)(22)] (2) Sales of nursery stock and floral products…

Notes Ala. Admin. Code r. 810-6-3-.43.01

Notes Ala. Admin. Code r. 810-6-3-.43.02

Notes Ala. Admin. Code r. 810-6-3-.43.03

Notes Ala. Admin. Code r. 810-6-3-.43.04

(Repealed 11/3/98) Author: Dan DeVaughn Notes Ala. Admin. Code r. 810-6-3-.43.05 Filed September 28, 1982. Filed January 15, 1993, certification filed April 15, 1993, effective May 20, 1993. Amended: Filed November 5, 1997; effective December 10, 1997. Repealed: Filed September 2…

(1) Sales at retail of parakeets, parrots or canaries are subject to sales or use tax when made by dealers. Sales of these birds are not subject to tax, however, when they are products of a farm and are sold by the producer or for him by a member of his family or by a person empl…

When purchased for agricultural use as a soil conditioner or plant food, peat or peat moss is exempt from the sales or use tax, as the case may be, by the fertilizer exemptions found in Sections 40-23-4(a)(2) and 40-23-62(5). (State v. Flowerwood Nursery, Inc., 55 So. 2d 130) Aut…

(1) The term "pollution control facilities" shall mean any system, method, construction, device, or appliance appurtenant thereto acquired for the primary purpose of eliminating, preventing, or reducing air and water pollution, or acquired for the primary purpose of treating, pre…

(1) The post office is a quasi-independent governmental agency and is, therefore, exempt from state taxation. The U. S. Postal Service as it exists today was created under the Postal Reorganization Act, Public Law No. 91-375, August 12, 1970, 84 Stat. 719. Section 10(a) of this A…

(1) Baby chicks, broilers, eggs, and other poultry products are exempted when sold by the producer, members of his family, or persons employed by him to aid in the production thereof, and when produced in a rural area on premises which include cultivated areas used in connection …

(1) Drugs as defined in Section 40-23-4.1(a), Code of Ala. 1975, are exempt from sales and use tax. (2) The exemption referenced in Section (1) above applies to drugs purchased by hospitals, infirmaries, sanitariums, nursing homes, medical clinics, and physicians for use or consu…

(1) Sales to privately owned educational institutions are exempt from sales and use tax. (2) Privately owned educational institutions are:(a) Institutions operating within the State of Alabama offering conventional and traditional courses of study, such as those offered by public…

Sales of tangible personal property are exempted from sales and use taxes when made to state, county or city school boards or to other instrumentalities or agencies of the state or cities or counties of the state for use in the operation of public schools. Author: Dan DeVaughn No…

Tangible personal property is exempted from sales and use taxes when purchased for the sole use and benefit of, and for use under control of a state, county, or city school from any funds under the control of such school where a purchase order is issued therefor by the principal …

(1) Sales of athletic equipment to public schools is exempted from sales tax where such sales are made in accordance with the provisions of Sales and Use Tax Rule 810-6-3-.47.04 governing sales to public schools, as mentioned above. (2) In those instances where athletic equipment…

(1) Sales of tangible personal property to public schools or for use therein shall not be subject to tax under the following circumstances: (a) Where the property is sold pursuant to the purchase order issued by the State of Alabama or a county or city of the state or any instrum…

Materials which pass to the repairman's customer, and which do not lose their identity, such as auto repair parts, radio tubes, and condensers, are sold at retail by the repairman. He must report and pay sales tax on such sales provided delivery is made to the customer in Alabama…

Notes Ala. Admin. Code r. 810-6-3-.48.01

Notes Ala. Admin. Code r. 810-6-3-.48.02

Notes Ala. Admin. Code r. 810-6-3-.48.03

Notes Ala. Admin. Code r. 810-6-3-.48.04

Notes Ala. Admin. Code r. 810-6-3-.48.05 Adopted August 10, 1982. Filed September 28, 1982. Repealed: Filed September 15, 1998; effective October 20, 1998. New Rule: Filed March 25, 2002, effective April 29, 2002. Amended: Filed January 19, 2006; effective February 23, 2006. Repe…

Reserved Notes Ala. Admin. Code r. 810-6-3-.49

Reserved Notes Ala. Admin. Code r. 810-6-3-.50