| TO: | ALL PERSONS, FIRMS, AND CORPORATIONS making sales at retail and purchasing tangible personal property for use, storage, or consumption in the Town of Detroit, Alabama (Lamar County). |
Pursuant to Sections 11-51-200, et seq., Code of Alabama 1975, Ordinance No. ST-1-99 and resolution adopted and approved by the town council on January 18, 1999, the Alabama Department of Revenue will begin collecting the sales and use taxes previously collected by the Town of Detroit. The Alabama Department of Revenue will begin collecting the Town of Detroit taxes effective March 1, 1999.
The sales and use tax rates for the Town of Detroit are shown below:
| SALES TAX |
USE TAX |
|
| General Rate | 1% | 1% |
| Admissions to places of amusement and entertainment | 1% | 1% |
| Cost of food for human consumption sold through vending machines | 1% | 1% |
| Net difference paid for machines, machinery, and equipment used in planting, cultivating and harvesting farm products | 1/2 of 1% | 1/2% |
| Machines and parts and attachments for machines used in manufacturing tangible personal property | 1% | 1% |
| Net difference paid for all automotive vehicles, truck trailers, semi-trailers and house trailers | 3/4 of 1% | 1% |
The Law requires that the tax be collected from your customers in the same manner as the State Sales Tax.
Ordinance No. ST-1-99 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 that the rate of use tax on automotive vehicles is 1%.
The Alabama Department of Revenue will be the collecting agency for the Town. Therefore, your reports are to be filed in the same manner as your State Reports. A discount is allowed for prompt payment of sales tax; however, a discount is not allowed for prompt payment of use tax.
A reporting form for Detroit must be used in filing your return and a separate remittance must be attached to the return. Please make your remittance payable to the Alabama Department of Revenue. The tax collected for the Town of Detroit will be returned to the Town.
New forms for use in filing the Detroit returns will be mailed to you before April 1, 1999, so you can file your report for the month of March 1999, on or before April 20.
Businesses that report all local taxes on the city and county consolidated tax return will not receive individual Detroit forms. Those filing on consolidated tax returns are required to add Detroit and the 9757 prefix code.
Please direct all questions regarding the Town of Detroit tax to this office.