Title 40 — Title 40

In the event that the enactment of federal legislation removes current federal limitations on states’ ability to enforce their sales and use tax jurisdiction against businesses that lack an instate physical presence, the provisions of this part shall be inapplicable as to any eli…

(a) Subject to the limitations set out in this section, an eligible seller participating in the program shall be granted amnesty for any uncollected remote use tax that may have been due on sales made to purchasers in the state for all periods preceding October 1, 2019. (1) The a…

The Simplified Sellers Use Tax Remittance Program may not be used to report sales tax obligations subject to the sales tax imposed by Chapter 23 of this title or any local law or municipal ordinance or any county ordinance enacted pursuant to Section 40-12-4 imposing a sales tax …

(a) For the purpose of Act 2018-539, the following terms shall have the respective meanings ascribed to them: (1) DEPARTMENT. The Alabama Department of Revenue. (2) MARKETPLACE FACILITATOR. A person that contracts with marketplace sellers to facilitate for a consideration, regard…

By no later than January 1, 2019, the department shall initiate an online application process to simplify refunds requested pursuant to Section 40-23-196. History: (Act 2018-539, §4.)

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 …

Improper Locality. (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, wh…

For purposes of this division, the following words or phrases shall have the following meanings: (1) AGREEMENT. The Streamlined Sales and Use Tax Agreement. (2) COMMISSION. The Alabama Streamlined Sales and Use Tax Commission created in this division to develop, implement, and ad…

(a) There is hereby established the Alabama Streamlined Sales and Use Tax Commission, created to identify, develop, implement, and administer the procedures and programs the State of Alabama would need to come into compliance with the Streamlined Sales and Use Tax Agreement in th…

The duties of the commission shall include identification and development of each of the following as necessary for compliance with the Streamlined Sales and Use Tax Agreement: (1) The development of a system for single entity administration of state and local tax collection and …

(a) The commission shall make a preliminary written report of its recommended implementation plan regarding necessary systems and programs within three months of the initial meeting of the commission. The preliminary report approved by the commission shall be distributed for comm…

(a) In addition to the duties set out in Section 40-23-202, the commission shall research Alabama’s existing tax laws to identify what changes in existing law will be necessary in order to bring Alabama in compliance with the agreement in the event that federal legislation adopti…

The Legislature shall appropriate such funds from the general funds of the State of Alabama as necessary for the reasonable and necessary expenses of the commission, including the implementation and administration of programs developed pursuant to this division. History: (Act 201…

Consumer Price Index. (a) As used in this article, the term “covered items” means the following: (1) Articles of clothing with a sales price of one hundred dollars ($100), or less, per article of clothing. a. “Clothing” means all human wearing apparel suitable for general use inc…

Covered items, as defined herein, are exempted from paying the state sales and use tax during the period from 12:01 a.m. on the third Friday in July of each year and ending at 12 midnight the following Sunday. Items normally sold in pairs shall not be separated to qualify for the…

The Commissioner of the Department of Revenue shall promulgate any rules necessary to implement and administer this article including, but not limited to, a list of those articles and items qualifying for the exemption pursuant to this article, that do not conflict with the strea…

Any county or municipality, by resolution or ordinance adopted at least 90 days prior to the third full weekend of July, may provide for the exemption of covered items from county or municipal sales and use taxes during a period commencing at 12:01 a.m. on the third Friday in Jul…

Consumer Price Index. (a) As used in this article, the term “covered items” includes the following selling for sixty dollars ($60) or less per item: (1) Any package of AAA-cell, AA-cell, C-cell, D-cell, 6-volt, or 9-volt batteries, excluding coin batteries and automobile and boat…

Purchases of covered items, as defined herein, are exempted from the state sales and use tax during the period from 12:01 a.m. on the first Friday in July in 2012 and ending at twelve midnight the following Sunday. In subsequent years, purchases of covered items are exempted from…

The Commissioner of the Department of Revenue shall promulgate any rules necessary to implement and administer this article including, but not limited to, a list of those articles and items qualifying for the exemption pursuant to this article, that do not conflict with the Strea…

Any county or municipality, by resolution or ordinance adopted at least 14 days prior to the first full weekend of July in 2012 and at least 90 days prior to the last full weekend of February in subsequent years, may provide for the exemption of covered items from county or munic…

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…

(a) No later than September 30, 2013, the Department of Revenue shall develop and make available a system which allows any taxpayer required to file and remit a state, county, or municipal sales or use tax or a state, county, or municipal leasing or rental tax or a state, county,…

Interest. (a) All Alabama taxing jurisdictions shall authorize utilization of the ONE SPOT system for any taxpayer required to file a state or local sales or use tax or leasing or rental tax or lodgings tax return or remit the tax payments; provided, however, that any taxpayer ut…

(a)(1) To ensure that local taxing jurisdictions have meaningful input into the development and operation of ONE SPOT, a State and Local Advisory Committee is hereby established to review the design and operation of the system and to make recommendations regarding system requirem…

Nothing in this article shall be construed to authorize the Department of Revenue to impose fees on the local taxing jurisdictions or their designees for the maintenance or operation of the ONE SPOT system. History: (Act 2012-279, p. 563, §4.)

Notwithstanding any other provisions of law, the due date for any taxes which are eligible to be filed through the ONE SPOT system set out in this article shall be the same due date as the corresponding state tax whether or not payment is made through the ONE SPOT system. History…

Withheld. 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, o…

(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…

Advisory Group. (a) This article shall establish the Wholesale to Retail Accountability Program or “WRAP”. (b) For the purpose of this article, the following words shall have the following meanings: (1) DEPARTMENT. The State Department of Revenue. (2) LICENSED BEER OR WINE DISTRI…

(a) The department is authorized to require that every payment settlement entity, third party settlement organization, electronic payment facilitator, or other third party acting on behalf of a payment settlement entity, all as defined in Section 6050W of the Internal Revenue Cod…

(a) Information on all municipal business privilege license applications for new licenses and renewals issued on or after October 1, 2019, shall be electronically transmitted to the department by the licensing official or agent in the same manner as privilege licenses issued purs…

Section 40-23-260 is limited to the reporting of certain information to the Department of Revenue and shall not be construed as limiting or changing the existing record keeping requirements as provided in Section 40-23-9. History: (Act 2017-294, §4.)

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. History: (Acts 1959, 2nd Ex. Sess., No. 100, p. …

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. History: (Acts 1959, 2nd Ex. Sess., No. 100, p. 298, §31.)

Disposition of Revenues from Tax. [Effective until September 1, 2026.] AMENDED BY ACTS 2026-392 AND 2026-514, EFFECTIVE SEPTEMBER 1, 2026, AND ACT 2026- 573, EFFECTIVE JUNE 1, 2026. SEE ACTS FOR REVISED LANGUAGE. (a) Such amount of money as shall be appropriated for each fiscal y…

(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, …

of This Division. 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…

Country; Certain Passenger Vehicles and Trucks Exempt from Sales and Use Taxes. (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 sole…

(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…

Menstrual Hygiene Products. (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…

(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…