change, sales tax

Keeping up with local sales and use tax changes in Alabama isn’t easy.

Quite a few changes to local sales and use tax in Alabama went into effect Aug. 1 and Sept. 1, 2017.

Local changes effective August 1, 2017

Citronelle decreased sales and use tax as follows:

  • Net difference paid for machines, machinery, and equipment used in planting, cultivating, and harvesting farm products: 3% to 0.875%
  • Machines and parts and attachments for machines used in manufacturing tangible personal property: 3% to 0.875%
  • Net difference paid for all automotive vehicles, truck trailers, semitrailers, and house trailers: 2.5% to 0.875%

Rates for sales made within the police jurisdiction of Citronelle but outside the corporate limits of the city are half the listed rates.

The Alabama Department of Revenue will administer and collect sales and use tax for Coaling effective August 1, 2017.

Gilbertown increased the lodgings tax rate substantially, from 2 to 6%. It also added a tax on admissions to places of amusement and entertainment (2%), and it increased taxes on the following from 0.5% to 1%:

  • Net difference paid for machines, machinery, and equipment used in planting, cultivating, and harvesting farm products
  • Machines and parts and attachments for machines used in manufacturing tangible personal property
  • Net difference paid for all automotive vehicles, truck trailers, semitrailers, and house trailers

As with Citronelle, transactions occurring outside the corporate limits of town but within the police jurisdiction are taxed at half the normal rate.

Jefferson County made a change that affects sales and use tax reporting, not rates. It replaced the Jefferson County Education Tax (locality code 7137) with the Jefferson County Special Revenue Tax (locality code 7337).

Midland City decreased the tax on the following from 1.5% to 0.5%:

  • Net difference paid for machines, machinery, and equipment used in planting, cultivating, and harvesting farm products
  • Machines and parts and attachments for machines used in manufacturing tangible personal property
  • Net difference paid for all automotive vehicles, truck trailers, semitrailers, and house trailers

Transactions made within the police jurisdiction but outside the corporate limits of town are taxed at half the normal rate.

Opp increased sales taxes as follows:

  • General rate: 3 to 4%
  • Admissions to places of amusement and entertainment: 3 to 4%
  • Retail selling price of food for human consumption sold through vending machines: 3 to 4%
  • Net difference paid for machines, machinery, and equipment used in planting, cultivating, and harvesting farm products: 0.75 to 1%
  • Machines and parts and attachments for machines used in manufacturing tangible personal property: 1 to 1.5%
  • Net difference paid for all automotive vehicles, truck trailers, semitrailers, and house trailers: 0.5 to 0.75%
  • Withdrawal fee for automotive vehicle dealers only: 6 to 11%

Opp also increased the following use tax rates, which differ from the corresponding sales tax rates:

  • General rate: 2 to 3%
  • Net difference paid for machines, machinery, and equipment used in planting, cultivating, and harvesting farm products: 0.5 to 0.75%
  • Machines and parts and attachments for machines used in manufacturing tangible personal property: 0.5 to 1%
  • Net difference paid for all automotive vehicles, truck trailers, semitrailers, and house trailers: 0.25 to 0.5%

Transactions occurring outside the corporate limits of town but within the police jurisdiction are taxed at half the listed rates.

Local changes effective Sept. 1, 2017

Allgood, which sounds like a relaxing place to inhabit, increased sales and use tax to 3% on the following:

  • General rate
  • Admissions to places of amusement and entertainment
  • Retail selling price of food for human consumption sold through vending machines
  • Net difference paid for machines, machinery, and equipment used in planting, cultivating, and harvesting farm products
  • Machines and parts and attachments for machines used in manufacturing tangible personal property
  • Net difference paid for all automotive vehicles, truck trailers, semitrailers, and house trailers

Allgood also imposed a new 3% tax on lodgings, as well as a 3% rental tax on:

  • The lease or rental of tangible personal property
  • The lease or rental of automotive vehicles, truck trailers, semitrailers, and house trailers
  • The lease or rental of linens and garments

Except for lodging, sales and rentals within the police jurisdiction but outside the corporate limits of town are taxed at 1.5%.

Chambers County will administer and collect taxes for the county as of Sept. 1, discontinuing services provided by the Alabama Department of Revenue.

Ft. Payne increased sales and use tax from 3 to 4% for the following:

  • General rate
  • Admissions to places of amusement and entertainment
  • Retail selling price of food for human consumption sold through vending machines

Greenville increased sales and use tax slightly, as follows:

  • General rate: 4 to 4.5%
  • Admissions to places of amusement and entertainment: 4 to 4.5%
  • Retail selling price of food for human consumption sold through vending machines: 4 to 4.5%
  • Net difference paid for machines, machinery, and equipment used in planting, cultivating, and harvesting farm products: 1 to 1.5%
  • Machines and parts and attachments for machines used in manufacturing tangible personal property: 1.5 to 2%
  • Net difference paid for all automotive vehicles, truck trailers, semitrailers, and house trailers: 1 to 1.5%

West Blocton increased sales tax from 1 to 2% for the following:

  • General rate
  • Admissions to places of amusement and entertainment
  • Retail selling price of food for human consumption sold through vending machines
  • Net difference paid for machines, machinery, and equipment used in planting, cultivating, and harvesting farm products
  • Machines and parts and attachments for machines used in manufacturing tangible personal property

It also increased the sales tax rate for the net difference paid for all automotive vehicles, truck trailers, semitrailers, and house trailers from 0.5 to 2%. However, it dropped the withdrawal fee for automotive vehicle dealers from 10% to 2%.

Furthermore, West Blocton imposed a 2% use tax on the following transactions:

  • General rate
  • Net difference paid for machines, machinery, and equipment used in planting, cultivating, and harvesting farm products
  • Machines and parts and attachments for machines used in manufacturing tangible personal property
  • Net difference paid for all automotive vehicles, truck trailers, semitrailers, and house trailers

Sales occurring outside the corporate limits of town but within the police jurisdiction are taxed at half the normal rate.

That’s a lot to digest, and it can cause a lot of extra work for retailers doing business in the above jurisdictions. Learn how tax automation software simplifies sales and use tax compliance here.