Title 40 — Title 40

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…

Value Added Sales and Use Tax Exemption. 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. History: (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…

Sales and Use Taxes. (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…

(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…

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…

of Article. 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 provis…

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: (1) Maintains a place of business; (2) Qualifies to do business; (3) Solicits and receives purchases or orders by agent or salesman; or (4) Distribu…

Every such seller making sales of tangible personal property for storage, use or other consumption in this state, not exempted under the provisions of Section 40-23-62, shall at the time of making such sales or, if the storage, use or other consumption of the tangible personal pr…

(a) Except as otherwise provided in subsection (f), the tax imposed by this article shall be due and payable to the department monthly on or before the 20th day of the month next succeeding each month during which the storage, use, or other consumption of tangible personal proper…

Quarterly, Semi-Annually, or Annually; Extension of Time for Making Return. (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 …

The department for good cause may extend for not to exceed 30 days the time for making any return required under the provisions of this article. History: (Acts 1939, No. 67, p. 96; Code 1940, T. 51, §798.)

The department, whenever it deems it necessary to insure compliance with the provisions of this article, may require any person subject thereto to deposit with it such security as the department may determine. The same may be sold by the department at public auction if it becomes…

A discount of three percent of the taxes levied by this article due and payable to the state shall be allowed to the seller or vendor; provided, that the taxes due by such seller are paid before same becomes delinquent, as in this article provided. Effective June 1, 2001, the Gov…

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…

If any retailer liable for an amount of tax herein required to be collected shall sell out his business or stock of goods or shall quit the business, he shall make a final return and payment within 15 days after the date of selling or quitting business. His successor, successors …

Every seller and every person storing, using or otherwise consuming in this state tangible personal property purchased from a retailer shall keep such records, receipts, invoices and other pertinent papers in such form as the department may require. The department or any person a…

September 1, 2026.] AMENDED BY ACTS 2026-392 AND ACT 2026-514, EFFECTIVE SEPTEMBER 1, 2026. SEE ACT FOR REVISED LANGUAGE. All taxes, fees, interest, or penalties imposed and all amounts of tax herein required to be paid to the state under this article must be paid to the Departme…

Any seller or other person failing or refusing to furnish any return hereby required to be made, or failing or refusing to furnish a supplemental return or other data required by the department, or rendering a false or fraudulent return, shall be guilty of a misdemeanor and subje…

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…

Repealed by Act 99-665, 2nd Sp. Sess., § 9. As to effective date, see the Code Commissioner’s Notes in the code supplement. History: (Acts 1935, No. 194, p. 256; Code 1940, T. 51, §365.)

Repealed by Act 99-665, 2nd Sp. Sess., § 9. As to effective date, see the Code Commissioner’s Notes in the code supplement. History: (Acts 1935, No. 194, p. 256; Acts 1936-37, Ex. Sess., No. 88, p. 105; Code 1940, T. 51, §366.)

Repealed by Act 99-665, 2nd Sp. Sess., § 9. As to effective date, see the Code Commissioner’s Notes in the code supplement. History: (Acts 1935, No. 194, p. 256; Code 1940, T. 51, §367.)

Repealed by Act 99-665, 2nd Sp. Sess., § 9. As to effective date, see the Code Commissioner’s Notes in the code supplement. History: (Acts 1935, No. 194, p. 256; Code 1940, T. 51, §368.)

Repealed by Act 99-665, 2nd Sp. Sess., § 9. As to effective date, see the Code Commissioner’s Notes in the code supplement. History: (Acts 1935, No. 194, p. 256; Code 1940, T. 51, §369.)

Repealed by Act 99-665, 2nd Sp. Sess., § 9. As to effective date, see the Code Commissioner’s Notes in the code supplement. History: (Acts 1935, No. 194, p. 256; Code 1940, T. 51, §370.)

Repealed by Act 99-665, 2nd Sp. Sess., § 9. As to effective date, see the Code Commissioner’s Notes in the code supplement. History: (Acts 1935, No. 194, p. 256; Code 1940, T. 51, §371.)

Repealed by Act 99-665, 2nd Sp. Sess., § 9. As to effective date, see the Code Commissioner’s Notes in the code supplement. History: (Acts 1935, No. 194, p. 256; Acts 1936-37, Ex. Sess., No. 88, p. 105; Code 1940, T. 51, §372.)

AMENDED BY ACT 2026-50, EFFECTIVE OCTOBER 1, 2026. SEE ACT FOR REVISED LANGUAGE. For the purposes of this article, the following terms shall have the respective meanings ascribed by this section: (1) WHOLESALE DEALER AND JOBBER. Persons, firms, or corporations who buy tobacco pro…

Common Carriers. The Department of Revenue may in its discretion return any goods confiscated under this article or any part thereof when it is shown that there was no intention to violate the provisions of this article. When any goods, merchandise or other property are confiscat…

[Effective until October 1, 2026.] AMENDED BY ACT 2026-50, EFFECTIVE OCTOBER 1, 2026. SEE ACT FOR REVISED LANGUAGE. All common carriers, contract carriers, buses and trucks transporting tobacco products may be required under regulations to be prescribed by the Department of Reven…

It shall be provided by regulations of the Department of Revenue the methods of breaking packages, forms and kinds of containers and methods of affixing stamps that shall be employed by persons, firms or corporations subject to the tax imposed by this article which will make poss…

It shall be the duty of every person, firm, corporation, club, or association of persons, receiving, storing, selling, or handling tobacco products enumerated herein in any manner whatsoever to keep and preserve all invoices, books, papers, cancelled checks, or other memoranda to…

Each and every wholesaler or jobber qualifying as such with the Department of Revenue shall be required to file a report between the first and twentieth of each month, covering the purchase or receipt by them of all tobacco products enumerated and defined herein during the preced…

(a) A wholesaler or jobber, as defined in Section 40-25-1 and who is duly qualified as such wholesaler or jobber under Section 40-25-16, may sell tobacco products enumerated herein without the Alabama Revenue Stamps affixed thereto; provided, that: Such products are sold and ship…

(a) Before an interstate warehouser may ship tobacco products into this state, the interstate warehouser must possess a current interstate warehouser permit. (b)(1) The annual application for an interstate warehouser permit must include the following items and any other informati…

Revocation Procedure. No person, firm, corporation, association, or copartnership operating more than one retail store or mercantile establishment within this state under the same ownership, supervision, or management, or operating a wholesale and retail business under the same r…

(Amended by Act 2026-50) [Effective until October 1, 2026.] AMENDED BY ACT 2026-50, EFFECTIVE OCTOBER 1, 2026. SEE ACT FOR REVISED LANGUAGE. (a) Each wholesaler, jobber, semijobber, registered retailer, importer, or any other person selling, receiving, or distributing tobacco pro…

Every wholesale dealer in this state shall before shipping, delivering or sending out any one or more articles taxed herein, to any dealer in this state or for sale in this state, cause the same to have the requisite denominations and amount of stamp, or stamps, to represent the …

AMENDED BY ACT 2026-50, EFFECTIVE OCTOBER 1, 2026. SEE ACT FOR REVISED LANGUAGE. (a) Persons failing to properly affix the required stamps to any cigars, cheroots, stogies, cigarettes, smoking tobacco, heated tobacco products, chewing tobacco, and snuff shall be required to pay, …