ALABAMA DEPARTMENT OF REVENUE
SALES, USE & BUSINESS TAX DIVISION
SALES & USE TAX RULE
810-6-2-.107. Wholesale Sales.
(1) Record of sales at wholesale to be kept. In the court case State
of Alabama v. Levey, 29 So.2d 129, the Alabama Supreme Court held that
suitable records of wholesale sales must be kept in accordance with the
provisions of the Sales and Use Tax Laws in order to claim nontaxability
for such sales.
(2) "We pointed out that the taxpayer kept no proper record to indicate
these sales or differentiate them from the remainder of the gross sales
shown on his general ledger. He, himself, said this and testified his charge
tickets, which had been destroyed, were his only records to distinguish
such sales. Other evidence was of like import."
(3) "We have construed the pertinent provisions of Title 51, noted above,
as requiring the keeping of accurate records of such exempt sales if they
are to escape taxation; and noncompliance gives authority to the tax department
to disregard such a claim of exemption and, on a proper showing of liability
to levy the tax on the gross, as for retail sales, as the provisions of
the statute contemplate." (Section 40-23-2(1)) (Readopted through APA effective
October 1,1982)
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