Chapter 1 - Sales And Use Taxes
- Article 1 Sales Tax.
- Division 1 General Provisions.
- Section 40-23-1 Definitions; transactions considered or not considered sales
(a) For the purpose of this division, the following terms shall have the respective meanings ascribed by this section: (1) PERSON or COMPANY. Used ...
- Section 40-23-2 Tax levied on gross receipts; certain sales exempt; disposition of funds
There is levied, in addition to all other taxes of every kind now imposed by law, and shall be collected as herein provided, a ...
- Section 40-23-2.1 Only one municipal or county sales, etc., tax collected on same sale; payment to 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 ...
- Section 40-23-3 Exclusion of certain municipal privilege license taxes
Municipal privilege license taxes which are levied and collected by the application of a flat percentage rate of gross sales, or gross receipts from ...
- Section 40-23-4 Exemptions
(a) There are exempted from the provisions of this division and from the computation of the amount of the tax levied, assessed, or payable ...
- Section 40-23-4.1 Certain drugs exempt
(a) The term "drugs" shall include any medicine prescribed by physicians when the prescription is filled by a licensed pharmacist, or sold to the ...
- Section 40-23-4.2 Food stamp purchases exempt
(a) As used in this section the following terms shall have the following meanings: (1) FOOD STAMPS. The stamps provided by the United States ...
- Section 40-23-4.3 Exemption form for certain agricultural purposes
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 ...
- Section 40-23-5 Certain organizations and vendors exempt from payment of state, county and municipal 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 ...
- Section 40-23-6 License required to engage in business
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 ...
- Section 40-23-7 Taxes due monthly; filing of reports; estimated payments authorized; election to file quarterly; extension of time for making return
(a) The taxes levied under the provisions of this division, except as otherwise provided in subsection (d), shall be due and payable in monthly ...
- Section 40-23-8 Cash sales and credit collections to be reported
Any person taxable under this division, having cash and credit sales, may report such cash sales, and the taxpayer shall thereafter include in each ...
- Section 40-23-9 Records to be kept
It shall be the duty of every person engaging or continuing in this state in any business for which a privilege tax is imposed ...
- Section 40-23-10 Reports under oath
The monthly reports herein required to be made are not required to be made on oath, but wherever in this division any report is ...
- Section 40-23-11 Penalty for failure to make reports or keep records
Any person subject to the provisions of this division who shall fail to make the reports or any of them, as herein required, or ...
- Section 40-23-12 Penalty for willful refusal to make reports or permit examination of records
Any person subject to the provisions of this division willfully refusing to make the reports herein required, or who shall refuse to permit the ...
- Section 40-23-24 Itinerant vendors to file bond
For the purpose of securing the payment of any tax, penalties or interest due or which may become due under the provisions of this ...
- Section 40-23-25 Person selling out or quitting business to file return; part of purchase money to be 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 ...
- Section 40-23-26 Tax to be added to purchase price; refund unlawful; tax a direct tax on retail consumer
(a) Every person, firm, corporation, association or copartnership engaged in or continuing within this state in the business for which a license or privilege ...
- Section 40-23-27 Violator may be restrained from continuing in business
Any taxpayer who shall violate any of the provisions of this division may be restrained from continuing in business, and the proper prosecution shall ...
- Section 40-23-28 Sales tax an additional tax
The tax imposed by this division shall be in addition to all other licenses and taxes levied by law as a condition precedent to ...
- Section 40-23-30 Administration and enforcement of division; appointment, etc., of agents, etc
The administration of this division is vested in and shall be exercised by the Department of Revenue, except as otherwise herein provided, and the ...
- Section 40-23-31 Department to make rules and regulations
The Department of Revenue shall from time to time promulgate such rules and regulations for making returns and for ascertainment, assessment and collection of ...
- Section 40-23-34 Proceeds of tax to be deposited in Treasury
All taxes or other funds received or collected by the Department of Revenue under the provisions of this division shall be without delay deposited ...
- Section 40-23-35 Disposition of revenues from tax
(a) Such amount of money as shall be appropriated for each fiscal year by the Legislature to the Department of Revenue with which to ...
- Section 40-23-36 Discounts
(a) The Governor may, by executive order, authorize the Department of Revenue to provide by proper rules and regulations for the allowance of a ...
- Section 40-23-37 Agricultural machinery and equipment - Tax imposed; rate
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 ...
- Section 40-23-38 Agricultural machinery and equipment - Enforcement; application of administrative provisions 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 ...
- Section 40-23-39 Refund of sales taxes paid on certain property purchased in state for export to foreign 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 ...
- Division 2 Street and Highway Contractors.
- Section 40-23-50 Tax levied; collection and enforcement
(a) There is hereby levied, in addition to all other taxes of every kind now imposed by law, and shall be collected, as herein ...
- Article 2 Use Tax.
- Section 40-23-60 Definitions
For the purpose of this article, the following terms shall have the respective meanings ascribed to them in this section: (1) PERSON or COMPANY. ...
- Section 40-23-61 Property taxed; persons liable
(a) An excise tax is hereby imposed on the storage, use or other consumption in this state of tangible personal property, not including, however, ...
- Section 40-23-62 Exemptions
The storage, use or other consumption in this state of the following tangible personal property is hereby specifically exempted from the tax imposed by ...
- Section 40-23-63 Agricultural machinery or equipment - Tax imposed; rate; who liable
There is hereby levied and imposed an excise tax on the storage, use or other consumption in this state of any machine, machinery, or ...
- Section 40-23-64 Agricultural machinery or equipment - Enforcement; application of administrative provisions 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 ...
- Section 40-23-65 Credit for sales or use tax paid to another state
If a sales or use tax equal to or greater than the amount of the Alabama tax is paid to another state under a ...
- Section 40-23-66 Retail sellers to register and give information
Every seller engaged in making retail sales of tangible personal property for storage, use or other consumption in this state, who: - (1) Maintains ...
- Section 40-23-67 Seller to collect tax; seller not to assume or absorb tax
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 40-23-68 Seller to file returns
(a) Except as otherwise provided in subsection (f), the tax imposed by this article shall be due and payable to the department monthly on ...
- Section 40-23-74 Extension of time for making return
The department for good cause may extend for not to exceed 30 days the time for making any return required under the provisions of ...
- Section 40-23-75 Deposit of security
The department, whenever it deems it necessary to insure compliance with the provisions of this article, may require any person subject thereto to deposit ...
- Section 40-23-77 Discount; distribution and expenditure
A discount of three percent of the taxes levied by this article due and payable to the state shall be allowed to the seller ...
- Section 40-23-82 Final return of retailer selling out; purchaser to retain part of purchase money
If any retailer liable for an amount of tax herein required to be collected shall sell out his business or stock of goods or ...
- Section 40-23-83 Records to be kept; enforcement of article; promulgation of regulations, etc
Every seller and every person storing, using or otherwise consuming in this state tangible personal property purchased from a retailer shall keep such records, ...
- Section 40-23-85 Disposition of funds derived from tax
All taxes, fees, interest or penalties imposed and all amounts of tax herein required to be paid to the state under this article must ...
- Section 40-23-88 Penalties
Any seller or other person failing or refusing to furnish any return hereby required to be made, or failing or refusing to furnish a ...
- Article 3 Taxes on Sale, Storage, and Use of Automotive Vehicles, Motorboats, Truck Trailers, etc.
- Section 40-23-100 Definitions
As used in this article, unless the context otherwise requires, the following terms shall have the following meanings: (1) JUDGE OF PROBATE. The judge ...
- Section 40-23-101 Sales tax levied on automotive vehicles, motorboats, truck trailers, manufactured homes, etc.; additional receipts and taxes collected
(a) There is hereby levied and shall be collected as herein provided a sales tax upon every person, firm, or corporation purchasing within this ...
- Section 40-23-102 Excise tax levied on storage or use of automotive vehicles, motorboats, truck trailers, manufactured homes, etc.; additional receipts and taxes collected
(a) There is hereby levied and shall be collected as herein provided, in lieu of the excise tax levied by subsection (c) of Section ...
- Section 40-23-103 Sales tax levied on sale price less credit for trade-in
Where any used automotive vehicle, motorboat, truck trailer, semitrailer, or house trailer is taken in trade or in a series of trades as a ...
- Section 40-23-104 Collection of taxes before registration or licensing; proof of purchase price; proof of payment of tax
(a) The licensing official shall collect all of the following: (1) The taxes levied by this article. (2) The municipal gross receipts or sales ...
- Section 40-23-105 Applicability of certain Title 40 provisions
Except as herein otherwise provided, the tax herein shall be subject to all definitions, exceptions, exemptions, proceedings, requirements, rules, regulations, provisions, penalties, fines, punishments, ...
- Section 40-23-106 Reciprocity
If a sales or use tax equal to or in excess of the amount of the tax imposed by this article is paid to ...
- Section 40-23-107 Fees
For making the collection of taxes levied under authority of this article, the licensing official shall be entitled to a fee in an amount ...
- Section 40-23-108 Disposition of funds
The licensing official shall, after the deduction of the fee as provided in Section 40-23-107, remit the revenue collected hereunder to the Department of ...
- Section 40-23-110 Penalty for failure to pay tax
Any person failing to pay the tax levied under the provisions of this article shall be guilty of a Class C misdemeanor and upon ...
- Section 40-23-111 Authority to adopt and enforce rules and regulations
The Department of Revenue is authorized to adopt, promulgate, and enforce reasonable rules and regulations relating to the administration and enforcement of Article 3, ...
- Article 3A Tax on Boat Buyers.
- Article 4 Violation of Tax Exempt Privilege.
- Section 40-23-120 Good faith violations
Any law to the contrary notwithstanding, any retailer, who relies in good faith on any state sales tax exemption number that has been authorized ...
- Section 40-23-121 Authorization to collect or recover sales taxes due on illegal purchases
The state Revenue Department is authorized to use its powers and responsibilities, in accord with the general laws of this state, to collect or ...
- Article 5 Taxes on Sale of Gasoline and Motor Fuel.
- Section 40-23-130 Calculation of municipal or county gross receipts tax
Any gross receipts tax imposed by a municipality or county on the sale of gasoline and motor fuel shall be based on the gross ...
- Article 6 Tax on Remote Sellers.
- Division 1 Application and Implementation.
- Section 40-23-150 Education Trust Fund Rainy Day Account
(a) Effective for the first full fiscal year following the enactment of legislation by the U.S. Congress that provides for states to enforce collection ...
- Division 2 Delegation to Discuss Sales and Use Tax Collection From Remote Sales.
- Section 40-23-170 Legislative findings
The Legislature finds that the State of Alabama should participate in negotiations with other states to simplify and modernize tax administration in order to ...
- Section 40-23-171 Definitions
As used in this division, the following terms shall have the following meanings: (1) AGREEMENT. An interstate agreement for simplification and uniformity of taxation ...
- Section 40-23-172 Delegates for participation in multistate discussions
(a) There is created a delegation to participate in multistate discussions regarding the simplification and modernization of tax administration. Delegates shall be appointed as ...
- Section 40-23-173 Duties of delegates; agreement
(a) Delegates shall enter into multistate discussions on behalf of the State of Alabama to consider whether the state should enter into an agreement ...
- Section 40-23-174 Distribution of proceeds
(a) Should the enactment of a national agreement for the collection of sales and use taxes from remote sellers establish a single national tax ...
- Division 3 Conditions for Remote Entity Nexus.
- Section 40-23-190 Conditions for remote entity nexus
(a) An out-of-state vendor has substantial nexus with this state for the collection of both state and local use tax if: (1) The out-of-state ...
- Article 7 School Items Annual Sales Tax Holiday.
- Section 40-23-210 Definitions
As used in this article, the term "covered items" means the following: (1) Articles of clothing with a sales price of one hundred dollars ...
- Section 40-23-211 Tax exemption on covered items
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 first ...
- Section 40-23-212 Rules and regulations
The Commissioner of the Department of Revenue shall promulgate any rules necessary to implement and administer this article including, but not limited to, a ...
- Section 40-23-213 County and municipal exemptions authorized
Any county or municipality may, by resolution or ordinance adopted at least 30 days prior to the first full weekend of August, provide for ...
