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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