Alabama Administrative Code

(1) In accordance with Section 40-23-211, Code of Ala. 1975, the Back-to-School Sales Tax Holidays will be held each year on the third full weekend of July beginning at 12:01 a.m. on Friday and ending at twelve midnight on the following Sunday, whereby no state sales or use tax w…

(1) Beginning at 12:01 a.m. on Friday, July 6, 2 012, and ending at twelve midnight on Sunday, July 8, 2012, a sales tax holiday is enacted pursuant to Act No. 2012-256, whereby no state sales or use tax is due on "covered items" as defined herein. For each year thereafter, the s…

Purchases by a sheriff of food to be used in feeding prisoners is exempt from sales tax. Author: Dan DeVaughn Notes Ala. Admin. Code r. 810-6-3-.67 Filed September 28, 1982. Statutory Authority: Code of Ala. 1975, §§ 40-23-4(11), 40-23-31.

Notes Ala. Admin. Code r. 810-6-3-.67.01

(1) Vessels Over Five Tons(a) The gross proceeds of the sale or sales of vessels, barges and commercial fishing vessels of over five tons load displacement are exempt from sales and use tax when sold by the manufacturer or builder thereof. (§§ 40-23-4(a)(12) and 40-23-62(17)). (b…

(1) Sales and use taxes do not apply to the sale, storage, use, or consumption of fuel and supplies aboard ships, vessels, towing vessels, or barges, or drilling ships, rigs or barges, or seismic or geophysical vessels, or other watercraft engaged in foreign or international comm…

(1) Whenever a merchant or seller makes a sale of fuel or supplies for use or consumption aboard vessels engaged in foreign or international commerce or in interstate commerce, any claim of exemption from Alabama sales or use tax on such sale because of such usage or consumption …

Author: Dan DeVaughn Notes Ala. Admin. Code r. 810-6-3-.68 Filed September 28, 1982. Repealed effective September 25, 1992. Statutory Authority: Code of Ala. 1975, §§ 40-23-31, 40-23-83.

(1) The term "load displacement" as used in Code of Ala. 1975, Sections 40-23-2(1), 40-23-4(a)(10), 40-23-4(a)(12), 40-23-4(a)(13), 40-23-61(a), 40-23-62(12), 40-23-62(14), and 40-23-62(17), refers to the weight of the volume of water displaced by a vessel, barge, ship, or other …

(Repealed). Author: Patricia A. Estes Notes Ala. Admin. Code r. 810-6-3-.69 Filed September 28, 1982. Repealed: Filed June 4, 1998; effective July 9, 1998. Statutory Authority: Code of Ala. 1975, §§ 40-23-4(5), 40-23-31, 40-23-83.

Notes Ala. Admin. Code r. 810-6-3-.69.01

(1) The United States Government, the State of Alabama, counties and incorporated municipalities of the state, and various other entities within the state are specifically exempt from paying sales and use tax on their purchases of tangible personal property. These exempt entities…

Reserved Notes Ala. Admin. Code r. 810-6-3-.70

(Repealed). Author: Dan DeVaughn Notes Ala. Admin. Code r. 810-6-3-.71 Filed September 28, 1982. Repealed: Filed September 15, 1998; effective October 20, 1998. Statutory Authority: Code of Ala. 1975, §§ 40-23-4(17), 40-23-31, 40-23-83.

When purchased for agricultural use as a soil conditioner or plant food, tung meal is exempt from sales and use tax pursuant to the fertilizer exemptions found in Sections 40-23-4(a)(2) and 40-23-62(5). Author: Dan DeVaughn Notes Ala. Admin. Code r. 810-6-3-.72 Filed September 28…

Notes Ala. Admin. Code r. 810-6-3-.72.01

Where construction materials or other tangible personal property is ordered by, sold directly to, and paid for by the Federal Government, its departments, or its agencies, such sales are not subject to the Alabama sales tax. In such case the determining factors are whether or not…

Notes Ala. Admin. Code r. 810-6-3-.72.03

Notes Ala. Admin. Code r. 810-6-3-.72.04

Vitamins, minerals, and dietary supplements are exempt from sales and use tax when dispensed by prescription by physicians licensed to practice medicine, chiropractors, orthodontists, or podiatrists in the performance of their professional services. (Section 40-9-27, Code of Ala.…

When dealers or distributors use parts taken from stocks owned by them in making repairs without charge for such parts to the owner of the property repaired pursuant to warranty agreements entered into by manufacturers, such use does not constitute taxable sales to the manufactur…

(Repealed). Author: Patricia Estes Notes Ala. Admin. Code r. 810-6-3-.74 Adopted November 1, 1963. Amended: July 27, 1964; June 12, 1978. Filed September 28, 1982. Repealed: Filed June 25, 1998; effective July 30, 1998. Statutory Authority: Code of Ala. 1975, §§ 40-23-4 a(21), 40…

(1) Septic tanks are pollution control devices and qualify for the pollution control exemption (AGO Baxley, June 1, 1978). (2) Field lines and gravel, tile, or other materials on which field lines are placed, likewise, qualify for the pollution control exemption. (Section 40-23-4…

(1) The definitions set forth in Code of Ala. 1975, Section 40-23-1(a), are incorporated herein by reference. (2) Sales are not subject to Alabama sales tax when the sales agreement requires the seller or the seller's agent to deliver the purchased property to the Port of Mobile …

(1) On and after January 1, 2014, the sale to, or the storage, use, or consumption by, any contractor or subcontractor of any tangible personal property to be incorporated into realty pursuant to a contract entered into on or after January 1, 2014, with a governmental entity is e…

(1) In accordance with Section 40-23-4(a)(37), Code of Ala. 1975, sales of aircraft manufactured, sold and delivered in Alabama that are not permanently domiciled in Alabama and are removed from Alabama are not subject to Alabama sales tax. (2) An aircraft manufactured, sold and …

(1) The term "bad debt or uncollectible account" as used in this rule shall mean any portion of the sales price of a taxable item which the retailer cannot collect. Bad debts include, but are not limited to, worthless checks, worthless credit card payments, and uncollectible cred…

(Repealed). Author: Patricia A. Estes Notes Ala. Admin. Code r. 810-6-4-.02 Repealed: Filed June 4, 1998; effective July 9, 1998. Statutory Authority: Code of Ala. 1975, §§ 40-23-31.

Notes Ala. Admin. Code r. 810-6-4-.02.05 Repealed by Alabama Administrative Monthly Volume XXXIX, Issue No. 12, September 30, 2021, eff. 11/14/2021. Author: Statutory Authority: Code of Ala. 1975, §§ 40-2A-7(5), 40-23-1(a)(6), 40-23-31, 40-23-83.

(1) Allowed Discount.(a) The department is authorized to allow a sales tax discount for sales taxes due and payable to the state by persons licensed under § 40-23-6, Code of Ala. 1975. (b) The allowed discount cannot exceed a maximum amount of four hundred dollars ($400), and is …

The Department "for good cause" may extend the time, not to exceed 30 days, for filing sales and use tax returns. The Supreme Court of Alabama in State v. Louis Pizitz Dry Goods Company, 11 So. 2d 342, held that the request for such an extension must be received by the Department…

(Repealed). Author: Patricia Estes Notes Ala. Admin. Code r. 810-6-4-.05 Amended: August 16, 1974. 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.

Failure to collect the tax due is unlawful. Both the Sales and Use Tax Laws require the seller to collect the tax due. Provisions of these laws make it unlawful to fail to collect the tax making such failure a misdemeanor punishable by fine or by imprisonment or both. The Sales a…

(1) Definitions. (a) Commercial Fishing Vessel - Any vessel whose masters and owners are regularly and exclusively engaged in commercial fishing as their means of livelihood by a holder of a commercial license issued pursuant to Chapter 12 of Title 9. (b) Machine, Machinery, or E…

(1) Effective April 1, 1983, the federal government levied a 12 percent retail excise tax on retail sales of certain trucks and trailers (26 USC Sec. 4051). This tax is a tax which the retailer is required to collect from his customer and remit to the federal government and is me…

(Formerly Titled Hearing On Assessments) (Repealed) Author: Dan DeVaughn Notes Ala. Admin. Code r. 810-6-4-.08 Rule originally adopted as Rule H5-011; readopted under APA October 1, 1982; amendment adopted October 8, 1985. Repealed: Filed April 15, 1993. Statutory Authority: Code…

(Repealed). Author: Dan DeVaughn Notes Ala. Admin. Code r. 810-6-4-.09 Adopted January 20, 1996. Amended August 10, 1982; readopted through APA effective October 1, 1982; amendment filed February 26, 1987; filed October 21, 1992. Repealed: Filed February 18, 1993. Statutory Autho…

Any seller within or without this state engaged in making sales at both retail and wholesale who claims as exempt from the Sales or Use Tax Act a sale to a licensed retail merchant, licensed dealer, licensed jobber, or other licensed person as a sale for resale must show on the i…

(1) Where a store leases departments to other persons who (i) operate the departments, (ii) keep their own books, and (iii) make their own collections on accounts; a separate sales tax return shall be filed by each person operating a leased department. Persons who lease departmen…

Reserved Notes Ala. Admin. Code r. 810-6-4-.12

Notes Ala. Admin. Code r. 810-6-4-.13 Adopted July 2, 1975. Amended: November 3, 1980. Amended: Filed May 2, 1996, effective June 6, 1996. Amended: Filed September 15, 1998; effective October 20, 1998. Attachment 810-6-4-.13 Application For Direct Pay Permit See Image at http://w…

(1) Requirements. Direct pay permits issued by the department authorize a business to make certain purchases from vendors without payment of state sales and use tax as well as county and municipal sales and use taxes administered by the department. In order to maintain the direct…

(1) The term "Department" as used in this regulation shall mean the Department of Revenue of the State of Alabama. (2) The definition of the term "motor fuel" contained in Code of Ala. 1975, Section 40-17-1, is incorporated by reference herein. (3) Except as outlined in paragraph…

(Repealed). Author: Original Author unknown Notes Ala. Admin. Code r. 810-6-4-.17.01 Readopted through APA, effective October 1, 1982. Amended April 11, 1989; Notice of Intended Action filed April 19, 1989; certification filed July 18, 1989; effective August 23, 1989. Filed April…

The word "processing" as used in the Sales and Use Tax Law is understood to have the following meaning: "Processing" means to subject to some special process or treatment. To heat, as fruit with steam under pressure so as to cook or sterilize. To subject, especially raw material,…

(Repealed). Author: Dan DeVaughn Notes Ala. Admin. Code r. 810-6-4-.18 Filed October 21, 1992. Repealed: Filed February 18, 1993. Statutory Authority: Code of Ala. 1975, §§ 40-23-3140-23-83.

(1) Retailers required by § 40-23-6, Code of Ala. 1975, to collect, report, and remit sales taxes must observe the following rules: (a) Each retailer must submit to the department a Sales Tax return for each calendar tax reporting period within the time prescribed by law and on f…

(1) It is the mandatory duty of the seller, the taxpayer, to pay the tax lawfully due under the Sales Tax Law and a like mandatory duty to add the amount thereof to the sales price and to collect same from the customer. (Doby v. State, 174 So. 233, Meriwether v. State, 42 So. 2d …

(1) The correct rate of tax due on credit sales made prior to the effective date of a rate increase is the old rate in effect prior to the rate change. (2) Tax due on collections on credit sales subject to the old rate of tax may be reported and paid by the seller as follows. The…

(1) The term "local sales or use taxes" as used in this rule shall include county or municipal sales and use taxes and county or municipal gross receipts taxes in the nature of a sales tax. (2) When the rates of local sales or use taxes change, or an existing local sales and use …