Title 40

Any person subject to the provisions of this division willfully refusing to make the reports herein required, or who shall refuse to permit the examination of his records by the Department of Revenue, or its duly authorized agents, shall be guilty of a misdemeanor, and upon convi…

There is levied, in addition to all other taxes of every kind now imposed by law, and shall be collected as herein provided, a privilege or license tax against the person on account of the business activities and in the amount to be determined by the application of rates against …

(a) If a sales tax, gross receipts tax in the nature of a sales tax, as defined in Section 40-2A-3(8), use tax, or rental tax levied by or on behalf of an Alabama municipality is paid under a requirement of law, the property which is the subject of such tax, when imported for use…

For the purpose of securing the payment of any tax, penalties or interest due or which may become due under the provisions of this division, every itinerant vendor engaged in the business of selling tangible personal property at retail in this state is required to file a bond wit…

Any person subject to the provisions hereof who shall sell out his business or stock of goods, or shall quit business, shall be required to make out the return provided for under Section 40-23-7 within 30 days after the date he sold out his business or stock of goods, or quit bus…

(a) Every person, firm, corporation, association or copartnership engaged in or continuing within this state in the business for which a license or privilege tax is required by this division shall add to the sales price and collect from the purchaser on all sales upon the gross r…

(a) The amount of an in-person cash transaction may be rounded to the nearest five cents using the following methodology: (1) If the final digit of the amount in the transaction is one or two, the final digit must be rounded down to zero. (2) If the final digit is three or four, …

(a) As used in this section, the following terms have the following meanings: (1) CREDIT CARD. Any card, plate, coupon book, or other credit device existing for the purpose of obtaining money, property, labor, or services on credit. The term shall also mean any card or other paym…

Any taxpayer who shall violate any of the provisions of this division may be restrained from continuing in business, and the proper prosecution shall be instituted in the name of the State of Alabama by its Attorney General, by the counsel of the Department of Revenue or under th…

The tax imposed by this division shall be in addition to all other licenses and taxes levied by law as a condition precedent to engaging in any business taxable hereunder, except as in this division otherwise specifically provided. (Acts 1959, 2nd Ex. Sess., No. 100, p. 298, §26.…

Municipal privilege license taxes which are levied and collected by the application of a flat percentage rate of gross sales, or gross receipts from sales, and which are passed on directly by the licensee-seller to the purchaser-consumer shall be excluded from gross sales, or gro…

The administration of this division is vested in and shall be exercised by the Department of Revenue, except as otherwise herein provided, and the enforcement of any of the provisions of this division in any of the courts of the state shall be under the jurisdiction and supervisi…

The Department of Revenue shall from time to time promulgate such rules and regulations for making returns and for ascertainment, assessment and collection of the tax imposed hereunder as it may be deemed necessary to enforce its provisions; and upon request shall furnish any tax…

All taxes or other funds received or collected by the Department of Revenue under the provisions of this division shall be without delay deposited in the Treasury. (Acts 1959, 2nd Ex. Sess., No. 100, p. 298, §31.)

(a) Such amount of money as shall be appropriated for each fiscal year by the Legislature to the Department of Revenue with which to pay the salaries, the cost of operation and management of the department shall be deducted, as a first charge thereon, from the taxes collected und…

(a) The Governor may, by executive order, authorize the Department of Revenue to provide by proper rules and regulations for the allowance of a discount, not to exceed five percent of the first $100 of taxes levied and two percent of the taxes levied over $100 by this division an…

There is hereby levied, in lieu of the state sales tax levied by Section 40-23-2, a privilege or license tax against the person on account of the business activities engaged in and in the amount to be determined by the application of rates against gross sales, or gross receipts, …

Section 40-23-37 shall be enforced by the Commissioner of Revenue and the Department of Revenue in the same way, and subject to the same rules and regulations as the state sales tax is enforced as provided in this division, and the administrative and enforcement provisions of thi…

(a) Notwithstanding any other provision of law, the purchaser of tangible property purchased in the state, with the intent that the property is to be retained in the state only temporarily and is solely for export to a foreign country, shall be entitled to a refund from the Depar…

(a) There are exempted from the provisions of this division and from the computation of the amount of the tax levied, assessed, or payable under this division the following: (1) The gross proceeds of the sales of lubricating oil and gasoline as defined in Sections 40-17-30 and 40…

(a) Notwithstanding any other laws to the contrary, any law that enacts or amends a sales and use tax exemption shall apply only to state sales and use taxes and shall not apply to county or municipal sales and use taxes, unless all of the following are satisfied: (1) The law pro…

(a) The term “drugs” shall include any medicine prescribed by physicians when the prescription is filled by a licensed pharmacist, or sold to the patient by the physician, for human consumption or intake. (b) In addition to any and all items exempt from gross sales tax, certain d…

(a)(1) For the period commencing on September 1, 2025, and ending August 31, 2028, the gross receipts from the sale or sales of baby formula, baby bottles, baby wipes, breast milk pumping product, breast pump, diapers, maternity clothing, and menstrual hygiene products for person…

(a) As used in this section the following terms shall have the following meanings: (1) FOOD STAMPS. The stamps provided by the United States Department of Agriculture for issuance to qualified recipients under the federal Food Stamp Act, 7 U.S.C. §2011 et seq. (2) FOOD STAMP SALE…

In connection with the purchases of tangible personal property described in subdivisions (2), (4), and (22) of subsection (a) of Section 40-23-4, and therefore exempt from taxation as therein provided, the filing by the purchaser at retail of such property with the seller of a ce…

In connection with the purchase of material, equipment, or machinery for commercial fishing vessels described in subdivision (13) of subsection (a) of Section 40-23-4, and therefore exempt from taxation under that section, the filing by the purchaser at retail of the material, eq…

The producer value added agricultural product exemption provided in Section 40-23-1 and 40-23-4, shall not apply to products processed or produced under Chapter 2A of Title 20. (Act 2023-541, §1.)

(a) For a period commencing October 1, 2024, and ending September 30, 2029, up to twenty-five thousand dollars ($25,000) of the gross proceeds from the sale of fencing materials such as t-posts, wood posts, barbed wire, net wire, smooth wire, standard metal gates, and other like …

(a) For the period commencing October 1, 2024, and ending September 30, 2029, unless extended by an act of the Legislature, the gross proceeds from the sale of honeybees, including honeybee inputs and honeybee byproducts, are exempt from the state sales and use tax as provided fo…

(a) The gross receipts from the sale of aircraft replacement parts, components, systems, sundries, and supplies affixed to, used on, or that became part of, aircraft brought into the state and used, or to be used, by a certified or licensed air carrier to undergo conversion, reco…

(a) The gross receipts from the sale of aircraft delivered in this state and used, or to be used, by certified or licensed air carriers, so long as the aircraft will not be hubbed in Alabama, are exempt from the state sales and use taxes provided for in Sections 40-23-2 and 40-23…

(a) On June 15, 2023, the definition of “food” in Sections 40-23-1 and 40-23-60 shall apply to county and municipal sales and use taxes. For purposes of county and municipal sales and use taxes, the sales tax rate on food shall be established as the general or retail sales tax ra…

(a) The Diabetes Trust Fund, Inc., and any of its branches or agencies, heretofore or hereafter organized and existing in good faith in the State of Alabama for purposes other than for pecuniary gain and not for individual profit, are exempted from paying any state, county, or mu…

(a) There is hereby levied, in addition to all other taxes of every kind now imposed by law, and shall be collected, as herein provided, a privilege or license tax against the person on account of the business activities engaged in and in the amount to be determined by the applic…

(a) If any person shall engage in or continue in any business for which a privilege tax is imposed by Section 40-23-2 as a condition precedent to engaging or continuing in such business, the person shall apply for and obtain from the Department of Revenue a license to engage in a…

(a) The commissioner, subject to the appeal provisions allowed in Chapter 2A, may suspend or revoke a license, or deny a license application or renewal, issued under Section 40-12-221, 40-23-6, or 40-23-66 for reasonable cause including the following: (1) Fraud practiced or any m…

(a) The taxes levied under this division, except as otherwise provided in subsection (d), shall be due and payable in monthly installments on or before the 20th day of the month next succeeding the month in which the tax accrues. (b) Except as otherwise provided in subsection (d)…

Any person taxable under this division, having cash and credit sales, may report such cash sales, and the taxpayer shall thereafter include in each monthly report all credit collections made during the month preceding, and shall pay the taxes due thereon at the time of filing suc…

It shall be the duty of every person engaging or continuing in this state in any business for which a privilege tax is imposed by this division, to keep and preserve suitable records of the gross sales, gross proceeds of sales, and gross receipts or gross receipts of sales of suc…

For the purpose of this article, the following terms have the respective meanings ascribed to them in this section: (1) PERSON or COMPANY. Any individual, firm, company, partnership, association, corporation, receiver or trustee, or any other group or combination acting as a unit…

(a) An excise tax is hereby imposed on the storage, use, or other consumption in this state of tangible personal property, not including, however, materials and supplies bought for use in fulfilling a contract for the painting, repairing, or reconditioning of vessels, barges, shi…

The storage, use, or other consumption in this state of the following tangible personal property is hereby specifically exempted from the tax imposed by this article: (1) Property, on which the sales tax imposed by Article 1 of this chapter is paid by the consumer to a person lic…

There is hereby levied and imposed an excise tax on the storage, use, or other consumption in this state of any machine, machinery, vessel, or equipment which is used in planting, cultivating, and harvesting farm products; used in the capture, attempted capture, or processing fis…

Section 40-23-63 shall be enforced by the Commissioner of Revenue and state Department of Revenue in the same way, and subject to the same rules and regulations as the state use tax is enforced as provided in this article; and the administrative and enforcement provisions of this…

If a sales or use tax equal to or greater than the amount of the Alabama tax is paid to another state under a requirement of law, the property which is the subject of such tax when imported for use or consumption in Alabama is not subject to the use tax, which is required to be p…

Every seller engaged in making retail sales of tangible personal property for storage, use or other consumption in this state, who: shall register with the department and give the name and address of each agent operating in this state, the location of any and all distribution or …