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View All Liability Insurance, Revocation and Suspensions FAQs

Am I required to surrender the license plate upon Revocation of the Registration?

Yes. If the vehicle was in exempt (stored, inoperable, or other unused) status the registrant should visit their local licensing official to surrender the license plate within thirty days of the MLI verification notice.

Failure to surrender the license plate within 30 calendar days of the MLI verification Notice will result in suspension of their vehicle registration.

Failure to surrender the license plate or completion of the “Request for Registration Revocation” form (MV32-7A-5) within 30 days of the MLI verification notice will result in a registration suspension. However, if the registrant was unable to surrender the plate within 30 days due to any of the reasons listed on MV Form 32-7A-11 (on DOR website), the registrant may qualify for a “good cause” extension. The form should be completed (along with necessary documentation) and submitted to their local licensing official within 30 calendar days from the date that the “good cause” event ended. If the plate and/or a completed form MV32-7A-5 was not submitted to the local licensing official within 30 days of the MLI verification notice and if the registrant does not qualify for any of the good cause reasons listed on MV32-7A-11, reinstatement fees ($200 for first suspension; $400 for second and subsequent suspension) and evidence of current Alabama liability insurance coverage must be provided to their local licensing official to remove the registration suspension.

Visit your local licensing official to claim the stored, inoperable, or otherwise unused exemption from the reinstatement fee.

In accordance with section 32-7A-11(a)(2), when a registrant responds that the vehicle was not operated during a lapse in coverage due to the vehicle being stored, inoperable, or otherwise unused, the registrant must provide evidence of the vehicle’s non-use to the licensing official. If the evidence is deemed acceptable by the licensing official, the registration will be revoked, and reinstatement fees will not be due.

A registrant may claim the stored, inoperable, or otherwise unused exemption from the reinstatement fee once during the registration period by applying to the local licensing official to revoke the vehicle’s registration for the remainder of the registration period and be exempted from the reinstatement fee. See Admin. Rule 810-5-8-.06 for further details.

 

Related FAQs in Liability Insurance, Revocation and Suspensions

In Alabama, a resale certificate is officially called a “Sales Tax License”. To get a copy of your Alabama resale certificate or Sales Tax License, you should:

Login to MAT, locate the appropriate tax account, locate and click “Print tax account license” link. If you need help or cannot access your certificate online contact the Alabama Department of Revenue Sales and Use Tax Division for assistance.

Step by Step Instructions for License Renewal

Yes. In accordance with Rule 810-6-1-.144.03: All buyers of property for resale purposes are entitled to purchase at wholesale, tax-free, the property they resell as regular course of business when they have secured the sales tax license required by law. This rule also applies to retailers located outside Alabama when they have secured the sales tax license required by law in the state in which they are located.

A credit card transaction fee is a charge added to the regular price of an item by a retailer when the purchaser pays for the item using a credit card. Other names for this fee include swipe fee, credit card surcharge, processing fee, service charge, or convenience fee.

These fees are subject to sales and use tax and should be included in the seller’s gross sales on retail transactions when calculating tax due. Example: A sale of tangible personal property totals $100. The customer pays with a credit card and is charged a $3 credit card transaction fee. The total price of $103, including the credit card transaction fee, is subject to sales and use taxes.

A credit card fee, even if separately stated, is part of the retailer’s cost of doing business, and the entire consideration for the sale of tangible personal property is subject to sales and use taxes.

If a transaction consists of only non-taxable goods or services, the credit card transaction fee is not subject to sales and use taxes. Example: A customer is charged $50 for a haircut. The customer pays with a credit card and is charged a $3 credit card transaction fee. Since the haircut is not subject to sales and use taxes, the corresponding credit card transaction fee is not subject to sales and use taxes.

When trying to complete title applications for vessels that have inches listed on the MSO, please use this Vessel Length Chart for conversion purposes.

Vessel Length Chart

Yes, Alabama allows resident individuals to claim a tax credit for income taxes imposed by other states. This credit is claimed on Form 40, Schedule CR. A copy of the other state’s return and a copy of the state Schedule K-1 should be included as documentation of this credit.

If the individual does not file an individual income tax return in the other state or the state provides an exclusion of income, include a proforma return calculating the tax at the other state’s rate and a copy of the state Schedule K-1 as documentation of this credit.

Note: Any Pass-Through Entity tax deducted on the Pass-Through Entity’s federal return, which reduces the taxable income reported on the owner’s K-1, should be added back to compute Alabama taxable income.

No, if the current title is an Alabama ELT there is no cost to print a physical title.

However, once an ELT is printed on physical title paper it can not be printed again. A replacement title application must be applied for if a replacement is needed.