ALABAMA DEPARTMENT OF REVENUE
SALES, USE & BUSINESS TAX DIVISION
SALES & USE TAX RULE
810-6-2-.41. Machines Furnished and Installed by Building Contractors.
(1) The 1 1/2% tax rate shall apply where a building contractor purchases
for installation under a building contract machines and parts or attachments
for machines which are to be used in mining, quarrying, manufacturing,
compounding or processing. The parts or attachments to come under the special
1 1/2% rate must be made or manufactured for such use and customarily so
used.
(2) On the other hand, building materials when used as such cannot come
within the special 1 1/2% levy when purchased by a contractor or by a manufacturer
regardless of whether or not the structure made therefrom may be used in
mining, quarrying, manufacturing, compounding or processing. (Sections
40-23-2(3), 40-23-1(a)(10)) (Readopted through APA effective October 1,
1982)
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