ALABAMA DEPARTMENT OF REVENUE
SALES, USE & BUSINESS TAX DIVISION
SALES & USE TAX RULE
810-6-2-.74.05. Railroad Rails.
(1) Railroad rails are taxable at the general rate of 4% when used as
a roadway for transportation equipment or for general purposes not described
in the next paragraph.
(2) Railroad rails are taxed at the special machine rate of 1 1/2% when
used as a roadway for quarrying or mining equipment in quarries or mines
or when used on or in the operation of machines used in manufacturing,
compounding or processing. (Sections 40-23-2(1) and 40-23-2(3)) (Adopted
March 9, 1961, amended November 1, 1963, readopted through APA effective
October 1, 1982)
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