Home>Business>Sales Tax>

STATE TAX RATES

with applicable Code of Alabama 1975 Sections
 
| Sales & Use | Rental | Lodgings | Contractors GR | Utility | Mobile Telecommunication | 2.2% Utility |
| Hydroelectric | Nursing Facility | Pharmaceutical Provider | Dry Cleaning Reg. Fees |
Due Dates for Filing/Paying These Taxes
 
SALES & USE TAX RATES
General
 40-23-2(1)
40-23-61(a)
Automotive
 40-23-2(4)
40-23-61(c)
Manufacturing
Machinery
 40-23-2(3)
40-23-61(b)
Farm
Machinery
 40-23-37
40-23-63
Vending
 40-23-2(5)
Amusement
 40-23-2(2)
4 %
2 %
1.5 %
1.5 %
3 % of the retail sales price of food products sold through vending machines
4 %
All other products: 4 %

RENTAL OR LEASING TAX RATES
General/Other
40-12-222
Automotive
40-12-222
Linens/Garments
40-12-222
4 %
1.5 %
2 %

LODGINGS TAX RATES
Alabama Mountain Lakes Area
40-26-1(a)
All Other Alabama Counties
40-26-1(a)
5 %
Includes the following Counties: Blount, Cherokee, Colbert, Cullman, DeKalb, Etowah, Franklin, Jackson, Lauderdale, Lawrence, Limestone, Madison, Marion, Marshall, Morgan and Winston
4 %

CONTRACTORS GROSS RECEIPTS TAX RATE
40-23-50(a)
5 % of gross receipts derived from performance of contracts to construct, reconstruct or build any public highway, road, bridge or street

UTILITY GROSS RECEIPTS TAX & UTILITY SERVICE USE TAX RATES
Electricity, Domestic Water, and Natural Gas Services
40-21-82(a) & 40-21-102(a)
If monthly gross sales or gross receipts respecting a person are: The tax is:
Not over $40,000.00 4 % of such gross sales or gross receipts
Over $40,000.00 but not over $60,000.00 $1,600.00 plus 3 % of excess over $40,000.00
Over $60,000.00 $2,200.00 plus 2 % of excess over $60,000.00
 
Telephone and Telegraph Services
40-21-82(b) & 40-21-102(b) (Act #2001-1090)
For bills dated on or after 4/1/02, the tax rate is:
6 % of all gross sales or gross receipts.
For bills dated prior to 4/1/02, the tax rate is:
If monthly gross sales or gross receipts respecting a person are: The tax is:
Not over $60,000.00 6.7% of such gross sales or gross receipts
Over $60,000.00 $4,020.00 plus 3.7% of excess over $60,000.00

MOBILE TELECOMMUNICATIONS SERVICE TAX RATES
40-21-121(a) (Act # 2001-1090)
6 % of gross sales or gross receipts from monthly charges from the furnishing of mobile
telecommunications service and mobile radio communication services.

2.2 % UTILITY LICENSE TAX RATES
40-21-53(a)
2.2 % of each dollar of gross receipts from each entity operating a public utility (hydroelectric, railroads, express companies, telephone and telegraph companies excepted)

HYDROELECTRIC KILOWATT HOUR TAX RATES
40-21-56
2/5 mill on each kilowatt hour of hydroelectric power manufactured and sold

ALABAMA NURSING FACILITIES PRIVILEGE TAX RATES
40-26B-21(a) & (b)
Annual rate of $1,200.00 for each bed in the facility (for periods prior to June 2004)
Annual rate of $1,899.96 for each bed in the facility (Effective 6/1/04 per Act No. 2004-532.
Beginning with the June 2004 return.)

PHARMACEUTICAL PROVIDER TAX RATES
40-26B-2
Ten cents for each prescription filled or refilled, with a retail price of $3.00 or more for a citizen of Alabama

DRY CLEANING ENVIRONMENTAL RESPONSE TRUST FUND REGISTRATION FEES
Owner/Operator of an Existing Dry Cleaning Facility as of 4/24/00 Electing to be Covered (22-30D-6(a))
2% of the gross receipts earned in Alabama during the prior calendar year, not to exceed $25,000 per year.
 
New Owner/Operator Acquiring an Existing Dry Cleaning Facility after 4/24/00 Electing to be Covered (22-30D-6(b))
2% of the gross receipts earned in Alabama by the prior owner/operator during the prior calendar year less the amount paid by prior owner/operator, not to exceed $25,000.
 
New Owner/Operator Establishing a New Dry Cleaning Facility after 5/24/00 Electing to be Covered (22-30D-6(c))
One-time registration fee of $5,000 for the first year of operation; for the second year of operation, the greater of $5,000 or 2% of the gross receipts earned for prior calendar year, not to exceed $25,000. Fore each year thereafter, see "Owner/Operator of an Existing Dry Cleaning Facility" above.
 
Wholesale Distributors of Dry Cleaning Agents (22-30D-6(d))
$5,000 per year.
 
Owner of Abandoned Dry Cleaning Facility or Impacted Third Party (22-30D-6(m))
$5,000 per year per site.

Disposition of Revenue Derived From Above Taxes
 

This page last updated February 7, 2006.

Local Tax Rates
Sales & Use Tax Home