ALABAMA DEPARTMENT OF REVENUE
SALES, USE & BUSINESS TAX DIVISION
SALES & USE TAX RULE
810-6-1-.150.05. Sand, Gravel, and other Building Materials, Sales
of.
(1) The seller is making taxable sales of such building materials as
sand, gravel, earth, crushed stone, and asphalt which are merely dumped
or deposited by him on a job site or in a storage area. In this case the
measure of the tax is the total amount received by the supplier without
any deduction for the expense of loading, dumping, or hauling or any other
expense whatsoever.
(2) On the other hand, sand, gravel, earth, crushed stone, and asphalt
or like materials are purchased at retail subject to a tax measured by
the purchase price where such materials are spread and placed by the purchaser
under a contract to furnish and to apply the materials in such a way that
they become a part of real property. Where this is the case, the purchaser
is acting as a contractor rather than as a retailer and there is no sale
at retail by him to the landowner.
(3) In case the supplier is both selling materials at retail and contracting
to furnish and apply them, the rule of dual businesses will apply with
the supplier purchasing all materials at wholesale, tax free, and thereafter
reporting and paying tax to the Department of Revenue on both sales at
retail and on withdrawals for use under contracts to furnish and apply.
(Section 40-23-1(a)(10)) (Adopted May 26, 1961, readopted through APA effective
October 1, 1982)
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