ALABAMA DEPARTMENT OF REVENUE
SALES, USE & BUSINESS TAX DIVISION
SALES & USE TAX RULE
810-6-3-.35.02. Interstate Commerce, Sales in.
(1) Sales are considered to be made outside Alabama and cannot be taxed
by the Alabama Sales Tax Law where:
- (a) The seller is required by the sales agreement to deliver the goods
outside the state in the seller's equipment, or
- (b) The seller delivers the goods to a common carrier or to the United
States Postal Service for transportation outside the state regardless of
any F.O.B. point, or
- (c) The seller is required by the sales agreement to deliver the goods
outside the state by the use of an independent trucker hired by the seller.
(2) Property is not sold outside Alabama, and therefore is subject to
Alabama Sales Tax, when the buyer takes actual possession of the goods
in this state or when an agent of the buyer accepts delivery for the buyer
to make delivery outside the state at the buyer's direction. However, when
the buyer contracts with a common carrier or the United States Postal Service
to accept goods in this state for delivery outside this state at the buyer's
direction, the sale is not subject to Alabama Sales Tax since the common
carrier or United States Postal Service is the agent of the seller regardless
of who selects the method of transportation. (Sections 40-23-1(a)(5) and
40-23-4(a)(17)) (Readopted through APA effective October 1, 1982, amended
effective June 9, 1995, amended March 10, 1998)
Numeric Index