The Legislature has passed and the Governor has approved Act No. 917, Regular Session Legislature 1969, which authorizes and empowers municipalities to levy a true sales and use tax identical to the State Sales and Use Tax Laws except for rates of tax. The Act also requires the Department of Revenue, upon request of the municipality, to collect the tax.

On March 6, 2001, the Town of Dauphin Island adopted Ordinance No. 69 which levies a 3 percent sales tax on the sales of tangible personal property, admissions to places of amusement and entertainment and the cost of food and food products for human consumption not including beverages other than coffee, milk and milk products sold through vending machines in the corporate limits of the town. The rate of tax on the gross sales of machines, parts and attachments for machines used in manufacturing, processing, compounding, mining, and quarrying tangible personal property; the net difference paid for all new and used automotive vehicles, truck-trailers, semi-trailers, and house trailers; and the net difference paid for machines, machinery or equipment which is used in planting, cultivating, and harvesting farm products will be 3 percent. The Law requires that the tax be collected in the same manner as the state sales tax.

The Ordinance also levies a use tax on tangible personal property purchased outside the corporate limits of the Town for use, storage, or other consumption within the corporate limits of the Town. The rates of tax are the same as the sales tax rates, except the automotive rate which is 2%.

If sales are made and delivered to consumers outside the corporate limits of the Town of Dauphin Island but within the police jurisdiction, the rates of tax are one-half those stated above.

A discount is allowed for prompt payment of sales tax; however, a discount is not allowed for prompt payment of use tax.

The Ordinance becomes effective April 1, 2001. Therefore, the new rates should be reflected on your April 2001 return, which is due on May 20, 2001.

Please direct all questions regarding the Town of Dauphin Island tax to this office.

ALABAMA DEPARTMENT OF REVENUE
Sales, Use & Business Tax Division
P.O. Box 327710
Montgomery, Alabama 36132-7710
(334) 242-1490