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Any addition to a qualifying existing industrial development property where the amount to be invested equals or exceeds 30% of the original cost of the existing land, building and equipment or $2,000,000.
The severance tax does not apply to severed materials stockpiled, transported or used in any other way by the producer until the materials are sold.
Pass Through Entity filers (partnership, S-corporation, trusts and disregarded entities) needing assistance with the credit claim process and/or Pass Through Entity filers who have questions about available tax credits should call the Pass Through Entity Tax Section at (334) 242-1033.
Enter Your Banking Information on the payment page:
Note: If you have debit block on your bank account, please provide the following information to your bank so that your bank will allow the tax payment(s) to be processed without rejecting:
| ADORCCD000 | (Company ID #) for Alabama Department of Revenue Payments |
| 2621862182 | for Company ID #’s for Self-Administered Jurisdiction Payments |
Payment Date: Payment Date is the date the payment will be sent to your bank. This date will default to the current date if payment is authorized prior to 4:00 p.m. CST, or the next day if payment is authorized after 4:00 p.m. CST. The Payment Date is editable if your payment is for a current return and is initiated before the Remit Due Date. In this case, you can choose to warehouse your payment up to the Remit Due Date.
If you wish for the payment to not be deducted from your bank account until the due date, you must edit the payment date field and enter that date. You can change this date to any date from the default Payment Date up to the remit due date. Unless you select a later date, the payment will be deducted from your bank account the next business day and paid directly to the government entity(s) listed under Pay To The Order Of.
Due Date: Due Date is the last date in which the payment is due before it is considered delinquent. PLEASE NOTE: To be considered timely paid an EFT payment must be transmitted by 4:00 p.m. CST on or before the Due Date so that the funds are immediately available to the State on the first banking day following the due date of payment.
Remit Due Date: Remit Due Date is the date in which you must submit the return for the EFT payment to be considered timely paid. NOTE: To be considered timely paid an EFT payment must be transmitted by 4:00 p.m. CST on or before the Due Date so that the funds are immediately available to the State on the first banking day following the due date of payment.
Early Filing and Payment, and Warehousing the Payment: If you make your payment prior to the Due Date, the payment will be deducted from your bank account the next business day. However, you can choose to warehouse your payment up to the Remit Due Date so that the payment is not deducted from your bank account until the date you specified.
If you wish for the payment to not be deducted from your bank account until the DUE DATE, you must edit the payment date field and enter that date. You can change this date to any date from the default Payment Date up to the remit due date. Unless you select a later date, the payment will be deducted from your bank account the next business day and paid directly to the government entity(s) listed under Pay To The Order Of.
Late Filing and Payment: If your return and payment are not timely filed and paid, you will be billed the appropriate interest and penalty. You cannot edit the Payment Date field for late payments. The payment will be deducted from your bank account the next business day from the Payment Date.
Pay To The Order Of:
Amount: The payment amount that will be deducted from your bank account.
Click the Continue button to verify the payment. Once verified, click the Authorize button to initiate the payment and receive your confirmation number.
Alabama’s tax rate on cigarettes is 33.75 mills for each cigarette. This converts to $0.03375 for one stick, $0.675 for a package of 20 cigarettes and $0.84375 for a package of 25 cigarettes. Alabama’s tax rates on tobacco products other than cigarettes (snuff, smoking tobacco, chewing tobacco, and cigars) vary based on weight and the number of cigars received. View the State Tobacco Tax Rates
Bulk Filing is a method for third party tax preparers to submit multiple clients’ returns in a single file upload. To receive Third Party/Bulk Filing Status, you must submit the Third Party/Bulk Filing Application. Once approved, you will receive an “Agent” account that you can use to sign on to the MAT system. With an Agent account, and your client’s approval, you will be able to file returns and submit payments on your client’s behalf using a single login. There are two options for filing and paying returns using your MAT login. You can enter the information on the return form on each of your client’s accounts or you can create text files, by tax type, that contain your client’s return and payment information for uploading to the system.
State tax on cigarettes is paid by purchasing revenue stamps and affixing the stamp to the package of cigarettes. Distributors can only purchase stamps from the Alabama Department of Revenue. Consumers who purchase cigarettes for which the tax has not been paid are required to remit the tax on cigarettes by return. State taxes on tobacco products other than cigarettes are paid by tax return. Tobacco wholesalers normally pay the taxes. However, if a retailer or consumer receives untaxed products, it is their responsibility to remit the tax to the Department.
Before you can enter your client’s return information using the tax return form your client must first set their account to allow third party logons. Then you must add your client’s account to your Account List by logging on to MAT and clicking the “Add Access to Another Account” link on the left side of the Home screen. Then you will need to enter your client’s tax account number, E-file Sign on ID, E-file Access Code and the third party password that your client created when setting their MAT profile to allow third party logons. Once the account is added you can access it by clicking the account number link on the accounts list.
There is not a stamp for these products, which are referred to as “other tobacco products” (OTP). The state tax rates vary, and taxes are paid by filing a monthly state tobacco tax return that is due by the twentieth of the month for the previous calendar month’s activity. The tax for regular cigars is based on the number of cigars received, whereas the tax for little cigars, snuff, chewing tobacco and smoking tobacco is based on weight.
The Bulk Upload method allows you to create a comma delimited text file for each tax type that contains your client’s return and payment information to upload to the system. These files can be created using a spreadsheet program (i.e., Excel) and saved as a comma delimited text file with either a .txt or .csv file extension. A separate file is required for each tax type using the following layouts. Note: If a header row is used during the creation of the file it should be removed prior to uploading since the system will begin importing with the first row of the file. Learn more about Bulk Filing
Alabama Code Section 40-25-2 states that in addition to all other taxes of every kind imposed by law, every person, firm, corporation, club or association, within the State of Alabama who sells or stores or receives for the purpose of distribution to any person, firm, corporation, club or association, within the State of Alabama, cigars, cheroots, stogies . . . or any substitute therefor, shall pay to the State of Alabama a license or privilege tax. The distributor is responsible for filing a monthly state tobacco tax return and remitting the state tax on all untaxed cigars received for distribution. If the distributor wants to distribute tobacco products into another state, Alabama tax free, they must apply and qualify for a tobacco stamping permit (40-25-16) to become a qualified wholesaler. According to the provisions of Section 40-25-15, only a qualified wholesaler may sell tobacco products exempt from Alabama’s tobacco tax. Also, if the distributor distributes the cigars into a state-administered county, they must file a monthly county tobacco tax return, and pay the county tax for each county in which there was activity. Both returns and tax payments are collected by the Department of Revenue and are due by the twentieth of the month. (Section 40-25-15 provides for a nontaxable sale by a qualified wholesaler or jobber if the sale is to another state, the United States or any instrumentality of the United States, or ships engaged in foreign commerce or coastwise shipping between points in this state and points outside this state. However, the product may be taxable in the state into which it is distributed.)
No, the Sales and Use Tax Division does not automatically issue a refund check. You will need to complete a petition for refund form.
The taxpayer must provide the Tobacco Tax Section written documentation concerning their effective out-of-business date. To receive a refund for unused stamps, the taxpayer must return the stamps to the Department along with a copy of the purchase invoice to substantiate the stamp sale. If the taxpayer purchased the stamps, and they returned them within the statute of limitations, a refund is issued to the taxpayer for the tax originally paid.
There is not a state tax on rolling papers. However, some counties do levy a tax on rolling papers. The tax rates range from $0.05 to $0.25 per package.
No. Since the revenue stamp is not affixed to individual sticks of cigarettes, there would be no evidence of tax payment. Section 40-25-2(f), Code of Alabama 1975, states that stamps in the amount of the tax shall be affixed to the box or container from which the tobacco product is sold at retail. In the case of cigarettes, the stamp shall be affixed to the individual package of cigarettes. Taxable tobacco products offered for sale at wholesale or retail without the appropriate revenue stamp affixed in the above manner is subject to confiscation by the Alabama Department of Revenue.
State stamps may be ordered by permitted wholesalers by logging into their MAT account and placing an order. See FAQs below on Ordering Stamps through MAT.
State-administered county tobacco taxes are paid on cigarettes by purchasing the county revenue stamp from the Alabama Department of Revenue and affixing the stamp to the cigarette package prior to distribution. All cigarette products placed in retail facilities must have the appropriate county stamp affixed; otherwise, the product is subject to confiscation. Consumers receiving untaxed cigarettes and manufacturers distributing promotional cigarettes are to remit the county tax to the Department by filing a monthly tax return. Taxes on tobacco products other than cigarettes (OTP) are paid by all distributors and consumers by filing a monthly tax return. See Form Search
Questions relating to county tobacco taxes not administered by the Alabama Department of Revenue must be directed to the appropriate county commission.
The county tax rates on cigarettes are based on a per package basis. County cigarette tax rates vary from county to county according to the language of each Act. County cigarette tax rates range from a low of $0.01 to a high of $0.25 per package. See County Tax Rates
These items are commonly referred to as other tobacco products (OTP). Most of the counties impose a tax on these items. The tax rates vary according to each county Act. See County Tax Rates
The tax on cigars differs between counties. Standard cigars for state-administered counties are all taxed per cigar, or each, and the rates range from $0.02 to $0.12. Little cigars are taxed by the pack or per each little cigar. The rate per pack of little cigars ranges from $0.04 to $0.12. The rate per each cigar ranges from $0.02 to $0.05. See County Tax Rates
Yes, state-administered county cigarette tax is collected by purchasing the stamp from the Alabama Department of Revenue. Some self-administered counties also collect and administer their taxes by using revenue stamps.
ONE SPOT was available to tax filers on October 1, 2013 for tax periods of September 2013 and forward.
Some state-administered counties levy a tax on rolling papers. The tax rates range from $0.05 to $0.25 per package. See the tax return for appropriate rates.
No, ALDOR can only accept information and direction from the local government, not their tax administrator.
There are time constraints on updating the ALDOR website and the ONE SPOT system. ALDOR requires notice at least 30 days prior to the effective date of the change. All changes are effective on the first day of a month.
A copy of the duly signed act, ordinance or resolution levying/authorizing the change is preferred. In lieu of a copy of the duly signed levying act, ordinance or resolution a notarized letter from the local government’s mayor, commissioner, or councilman stating what changes are being made is required.
The Alabama Legislature passed Act No. 2006-552 specifying that for each occasion that a business taxpayer is obligated to make a tax payment of $750 or more to the Alabama Department of Revenue, after October 1, 2006, such payment must be remitted electronically through an electronic funds transfer (EFT) method. Voluntary participation of transactions less than $750 is encouraged.
For withholding tax, if you meet the requirements to file through EFT (the current threshold is for payments of $750 or more), you must file and pay electronically. If you do not meet the filing requirements, filing withholding tax electronically is an option.
NOTE: If you file withholding tax electronically, you must also pay electronically.
The tax filer will be able to file and pay that local government’s sales, use and rental tax returns using ONE SPOT. Per Act 2012-279, ALDOR will use the best information available to set up that local government’s taxes in ONE SPOT. It is the local government’s responsibility to insure that updates are provided timely so that ONE SPOT is updated timely. ALDOR requires notice at least 30 days prior to the effective date of a change. All changes are effective on the first day of a month.
On the My Alabama Taxes (MAT) homepage, click on the Help link, then the Technical link.
No, they will already be included in ONE SPOT and will not see a change in the administration, collection or distribution services provided for their locality. State administered localities should continue to contact the Local Tax Section of the Sales & Use Tax Division if there are any changes in their rates, contact and banking information.
Yes. The My Alabama Taxes system uses the most up-to-date security technology to assure the privacy of your transactions. In addition, the login and user authentication areas are designed to assure users that only they can access their sensitive tax filing information.
Two types of electronic payments will be allowed through the ONE SPOT filing system, an ACH Debit and an ACH Credit.
ACH Debit payments will be processed by ONE SPOT and deposited into the bank account authorized by the local government. This will be done each business day.
ACH Credit payments are not processed through ONE SPOT; they are initiated by the taxpayer through their banking institution.
The Access Code and Sign On ID are located in the notification letter you received from the Alabama Department of Revenue.
Yes. There are two options, of which the first option is preferred:
The password is user-generated and case sensitive. If you have forgotten your password and receive an error message, you will need to correctly answer the security questions you selected during the Sign Up process (access this through the link ‘Forgot Password/Locked Out?’).
The Directory will show a listing of certifying e-liquid manufacturers and manufacturers of alternative nicotine products along with a listing of the certified and approved products for sale in Alabama.
The first time an ACH Credit filer does file through ONE SPOT for a non-state administered (NSA), they should have contacted the NSA or its administrator ahead of time to get the correct banking information of where to send the payment, unless the NSA or administrator had proactively notified its known ACH Credit filers of this information (the ALDOR local tax accounts are coded as C in the Local Accounts Lookup).
If you do not receive an ACH Credit payment that is expected, you should first contact that taxpayer to inquire about the payment and if they indicate they sent it anywhere other than to the NSA’s or third-party administrator’s bank account, then inform them of the correct procedures for future payments for that NSA. Inform them they can report at “ONE SPOT” but they will have to initiate payments to each self-administered or third-party entity. Forewarn them that if they make one payment it goes to ALDOR and not to the NSA or 3rd parties and they will be invoiced for the payment. If they want to authorize all of the payments in one place, then they might want to consider changing to ACH Debit instead and let the ONE SPOT system handle the direction of the payments. To change from ACH Credit to ACH Debit, they must contact the ALDOR EFT Unit at: 334-242-0192 ext. 7.
For the current misdirected payment you have two options:
If you have ACH Credit filers who repeatedly ignore your instructions on where to correctly submit the payment, with sufficient information in the addenda record to match the payment to the return, you can give them a final warning that their ability to file an ACH Credit return will be blocked for that locality. To block a problem ACH Credit filer, complete the ‘Request for Individual Taxpayer Denial/Reinstatement of the Ability to Make Payments by the ACH Credit Method’ that can be found on the local government ONE SPOT page
Yes. The confirmation number is provided on the Confirmation Page to confirm payment information was successfully submitted.
Any e-liquid manufacturer or manufacturer of alternative nicotine products that submits a certification or renewal as required in § 28-11-17.1, Code of Ala. 1975.
Tax payment transactions are due on or before the due date of the return.
NOTE: EFT payments must be transmitted BEFORE 4:00pm CST on or before the due date, to be considered timely paid.
NOTE: If you have debit block on your bank account, please provide the following information to your bank so that your bank will allow the tax payment(s) to be processed without rejecting:
| ADORCCD000 | (Company ID #) for Alabama Department of Revenue Payments |
| 2621862182 | (Company ID #s) for Non-State Administered (NSA) Local Payments |
You may submit the payment at any time up until the due date to be considered timely.
If you submit your payment early before the Due Date, you can choose to warehouse your payment so that the payment will not be deducted from your bank account until one business day subsequent to the Payment Date that you selected. If you choose not to edit the payment date, the payment date will default to the same date you are making your payment and the payment will be made the next business day if your payment is submitted before 4:00 p.m. CST, or two subsequent business days if filed after 4:00 p.m. CST. If you wish for the payment to NOT be deducted from your bank account until the DUE DATE, you must EDIT THE PAYMENT DATE FIELD and enter that date. You can change this date to any date from the default Payment Date up to the REMIT DUE DATE. Unless you select a later date, the payment will be deducted from your bank account the NEXT BUSINESS DAY.
Beginning March 1, 2022, each manufacturer must electronically submit to the department an initial certification application along with the initial application fee through the department’s online portal. Failure to submit the required fee will result in a denial of the application.
A computer with internet access.
No. A separate payment is required for each return, otherwise the payment will not match up with the return and your account may not receive proper credit for the payment.
The initial application fee due from every certifying e-liquid manufacturer and manufacturer of alternative nicotine products is two thousand dollars ($2,000). The annual renewal application fee thereafter is five hundred dollars ($500).
Payments will be deposited in the bank account authorized by the local government. A local government may choose to have the funds deposited into a non-local government bank account; completion of the appropriate documents will be required. ALDOR’s liability is limited to depositing the funds into the authorized banking account.
Training videos for basic title transactions are available on the MVTRIP homepage.
If you submit your payment early before the Due Date, you can choose to warehouse your payment so that the payment will not be deducted from your bank account until one business day subsequent to the Payment Date that you selected. If you choose not to edit the payment date, the payment date will default to the same date you are making your payment and the payment will be made the next business day if your payment is submitted before 4:00 p.m. CST, or two subsequent business days if filed after 4:00 p.m. CST. If you wish for the payment to NOT be deducted from your bank account until the DUE DATE, you must EDIT THE PAYMENT DATE FIELD and enter that date. You can change this date to any date from the default Payment Date up to the REMIT DUE DATE. Unless you select a later date, the payment will be deducted from your bank account the NEXT BUSINESS DAY
NOTE: If you have debit block on your bank account, please provide the following information to your bank so that your bank will allow the tax payment(s) to be processed without rejecting:
| ADORCCD000 | (Company ID #) for Alabama Department of Revenue Payments |
| 2621862182 | (Company ID #s) for Non-State Administered (NSA) Local Payments |
Beginning March 1, 2022, the certification application and application fee should be submitted between March 1 and April 30 of each year.
Rejected or dishonored ACH Debit payments will be reversed from the bank account currently set up with the payment processor. The local government will be responsible for ensuring a sufficient balance is maintained in the authorized bank account to handle rejected and dishonored payments. The local government’s collection process for unpaid liabilities will then apply.
There are a several reasons why you may not be given the option to pay. If you are trying to pay Business Privilege Tax (Form CPT or PPT) or Corporate Income Tax (Form 20C or 20S) and If you have not previously filed a return with the Department, you will not be given the option to pay these taxes and will not be able to use the system as your method of payment. Also, verify that the access code and sign-on id being used is designated for the particular tax attempting to be paid. If you are still unable to make a payment, and none of the above applies, please contact the Alabama Department of Revenue at 1-877-256-2447 or (334) 353-7659.
The Directory will be available beginning May 1, 2022.
If a local government’s authorized bank account is closed prior to the processing of a rejected or dishonored payment, and no new bank account has been set up with the payment processor, the local government will be responsible for reimbursing the payment processor for the rejected or dishonored payment.
No, if you have not previously filed a return with the Department for the new election, you will not be given the option to pay and will have to use another method of payment. The option to make payments under your new election will be granted once a return is on file with the Department.
Manufacturers or retailers that violate any of the provisions of Title 28, Chapter 11, may be subject to a five hundred dollar ($500) fine per offense. This fine may be imposed for failure to submit the initial certification and application fee by the due date.
The annual renewal application and annual renewal application fee must be received by the department during the annual renewal period of March 1 – April 30 to be considered timely. If the manufacturer’s certification expires, the manufacturer must remit the initial application fee with the required application and associated penalty, if applicable, to be re-certified and have its products certified/approved for sale and placed back on the Directory.
When an electronic payment is received by ALDOR in error, the payment will post to the taxpayer’s ALDOR local tax account. ALDOR will not be able to automatically transfer these payments to the non-administered local government due to the possibility the taxpayer’s payment will reject after ALDOR has transferred the payment, causing complicated collection issues. ALDOR will need the taxpayer to advise the Department with what to do with that payment.
Contact the EFT Unit at: 1-877-256-2447 or 334-353-7659.
Effective May 18, 2017, you will be able to submit state and county cigarette tax stamp orders through our My Alabama Taxes (MAT) portal.
The only non-administered local government taxes to be processed through ALDOR will be payments received as the result of legal action, such as final assessment, garnishments, and liens, entered into when the local government was state administered. Payment data for these payments will be available during the first week (5-10 working days) of the month following the tax collection period through the ALDOR website.
Taxpayer registrations have no expiration date and remain active until closed or inactivated.
Both state tobacco stamps (consignment and cash/EFT orders) and county tobacco stamps (cash/EFT only) administered by the Department may be ordered via MAT.
A computer with internet access.
To close a business tax account administered by the Sales & Use Tax Division, complete and mail the Business Closing Form.
To close your withholding tax account, select the box on Line 1 of Form A-1 or A-6. You will be instructed to complete Form A-7.
To cancel your permit or registration number associated with Tobacco or Storage Tank Trust Fund Charge Taxes, you may download the Permit/Registration Cancellation Form. Complete and mail to the address at the top of the form.
This system operates in “real time”. Therefore, once an order has been submitted our staff is being notified within the system that a new order has been received and is ready to be fulfilled. The quickest and most effective way to contact us would be to call 334-242-9627 immediately so that we can cancel the order. Because this system operates in “real time”, please review your order thoroughly – specifically the stamp type and quantity – before submitting it to us.
The Alabama Legislature passed Act No. 2006-552 specifying that for each occasion that a business taxpayer is obligated to make a tax payment of $750 or more to the Alabama Department of Revenue, after October 1, 2006, such payment must be remitted electronically through an electronic funds transfer (EFT) method. Voluntary participation of transactions less than $750 is encouraged.
For withholding tax, if you meet the requirements to file through EFT (the current threshold is for payments of $750 or more), you must file and pay electronically. If you do not meet the filing requirements, filing electronically is an option.
Once a “new line item” – your stamp type and quantity – has been saved to an order it can be edited by entering the correct count. You can also choose a new type from the drop down if you select the incorrect one.
Upon the completion of the Third Party Designation Form, ALDOR can provide the returns, payments and payment data files to the authorized third party administrator.
If a taxpayer, who meets the EFT threshold, fails to pay electronically, a penalty of 10% of the tax can be applied.
For withholding tax, if you meet the requirements to file through EFT (the current threshold is for payments of $750 or more), you must file and pay electronically. Substantial penalties can be assessed for noncompliance.
We use FedEx shipping. There is an area on your order form where you can choose whether you want pickup, overnight or 2-day delivery. Please use this feature to let our staff know the preferred shipping method. If the FedEx account number is incorrect please make the necessary changes.
The ONE SPOT system will allow returns to be filed with ACH Debit and ACH Credit method payments only. The system will not allow an ACH Debit taxpayer to complete their return filing without completing the necessary information to authorize the ACH Debit payment. The ACH Credit payment is separate from the ONE SPOT system and must be initiated by the taxpayer through their banking institution. Returns successfully submitted for ACH Debit and ACH Credit taxpayers will be exported to the local government.
ADOR is providing public access to computers in the taxpayer service centers located throughout the state. In addition, the public libraries have computers available to the public at no cost. To locate a taxpayer service center near you please visit a Taxpayer Service Center.
No, the system uses the system date that the order was created. Therefore, orders dated for the future are unavailable. If multiple orders are submitted on the same day before the 1 p.m. cut off, they will be processed for shipment that day; the related invoices would all have the same invoice and due dates.
The primary contact is through: ONESPOT@revenue.alabama.gov
Wanda Robbins
PO Box 327710 Montgomery AL 36132
P. 334 353 8044 | F. 334 353 7666
James Mayberry
PO Box 327710 Montgomery AL 36132
P. 334 353 7718 | F. 334 242 8916
Cameran Clark
PO Box 327710 Montgomery AL 36132
P. 334 242 1443 | F. 334 242 8916
E-Mail
wanda.robbins@revenue.alabama.gov
james.mayberry@revenue.alabama.gov
cameran.clark@revenue.alabama.gov
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Upon selecting the Tax Account ID, select the Pay link on the period that you want to make a supplemental payment.
The person or persons authorized by you to access MAT/submit your stamp order will receive a confirmation when they click on the “submit” button that the stamp order has been submitted to the Tobacco Tax Section. Once the order has been fulfilled, the invoice associated with the order will be available in MAT for viewing and payment, if applicable.
Sales, Use and Rental taxes for all cities and counties can be paid online with the department. All state administered and certain self-administered city and county lodging taxes can be paid online as well. As part of ONE SPOT or the Electronic Filing Services provided for lodgings tax, the electronic data and payments for the non-state administered cities and counties will be transmitted to the local government or its tax administrator.
No. However, the cigarette tax stamp ordering system is not tied to consignment balances. Therefore, state consignment customers must be aware of their available consignment balance and place orders within their bond limit. Failure to do so will result in the stamp order being modified to accommodate the available balance.
The first time you Sign Up to use My Alabama Taxes (MAT), you will need your tax account number, Sign On ID, Access Code. You must have a valid tax account number with the Alabama Department of Revenue to use the MAT payment system; or, if your tax payment does not require a tax account number, you must have filed a tax return with the ADOR within the past three years.
Yes, but only if the unpaid billing or assessment has not been transferred to the ADOR’s Collection Services Division (CSD). If the unpaid liability has been transferred to CSD, please contact the CSD at (334) 242-1220 to inquire about available payment methods.
Any company signed up to use My Alabama Taxes with a Master Web Login should submit garnishment answers and/or payment online directly through the My Alabama Taxes website.
Yes, but payments must be cancelled the same day by 4:00 p.m. Central Time, while the status of that request shows as “Pending”. Click on the pending request, then click the “Withdraw” link then the “Confirm” button.
Please contact the Alabama Department of Revenue at 1-800-322-4106.
All credits that require pre-certification must be submitted using your MAT Financial Institution Excise Tax Account. The credits that require pre-certification are:
Full Employment Act of 2011
Veterans Employment Act – Employer Credit
2013 Alabama Historic Rehabilitation Credit
Apprenticeship Tax Credit
Income Tax Capital Credit*
*Income Tax Capital Credit – Project Entities submit the Annual Report (Form AR-C) through MAT under the tax period in which it will be utilized. For Financial Institutions, the Annual Report and KRCC are now combined. See Income Tax Capital Credit.
Follow the instructions at the bottom of the most recent billing letter you receive from the Collection Services Division. If you have any questions, contact a Revenue Compliance Officer by calling 334-353-8096. Checks or money orders should be made payable to the Alabama Department of Revenue. Always write your assessment number and account number on the check. When using a social security number, mask the number using the following format: XXX-XX-1234.
Mail your payment to the following address:
Alabama Department of Revenue
Collection Services Division
P. O. Box 327820
Montgomery, AL 36132-7820
To make payments and view your account online, visit My Alabama Taxes.
Need to visit in-person? Click here to locate your nearest Taxpayer Service Center location and make an appointment.
In most cases this change must be initiated through the EFT Unit. Please contact a representative for additional information at 1-877-256-2447 or 334-353-7659.
These credits will be subject to an approval process when the tax return is filed claiming the credit. The following are credits that do not require pre-certification through MAT:
Sales Tax Credit
New Markets Credit
Investment Credit (Alabama Jobs Act)*
*Investment Credit (Alabama Jobs Act) – The approval of this credit is managed through the Department of Commerce. Once the Department of Commerce has approved the annual certification, the Alabama Department of Revenue will notify the investing company to complete an allocation schedule through MAT. See Investment Credit.
For additional information on any of these tax credits, please visit the Department of Revenue’s website at: Income Tax Incentives.
The department may seize a state tax refund to reduce a tax liability. The department may use any other collection method allowed by law as needed to collect the tax liability.
The United States Bankruptcy Code prohibits creditors from taking actions to collect certain debts while a bankruptcy case is pending and the automatic stay is in effect. If you are currently in a bankruptcy case, contact the Collection Services Division at 334-353-8096 immediately upon receiving a Final Notice Before Seizure and provide information about the bankruptcy case, including the bankruptcy case number. If you have questions about your tax liability in relation to a pending or prior bankruptcy case, please seek legal counsel from your bankruptcy attorney.
Financial Institution Excise Tax filers needing assistance with the credit claim process and/or Financial Institution Excise Tax filers who have questions about available tax credits should call the Corporate Income Tax Section at (334) 242-1200.
(§40-2A-4(b) (6)), Code of Alabama 1975, authorizes the Department of Revenue to enter into a payment agreement when it will facilitate collection of a tax liability. Completion of the Collection Information Statement and enclosing a payment does not automatically guarantee an installment payment agreement will be extended. Please note that installment payment forms can only be submitted if you currently have a final assessment in the Collection Services Division.
Ex-spouses remain individually liable on a final assessment entered on a joint tax return, even if the parties have mutually agreed that only one of the parties will be responsible for payment. Such decisions are not binding on the Alabama Department of Revenue.
To view state properties currently for sale by the Collection Services Division that were acquired through a sheriff’s sale for unpaid tax final assessments, visit ALDOR eBuy for more information on how to submit a bid online.
The effect of the U.S. Supreme Court’s decision in South Dakota v. Wayfair, Inc. on June 21, 2018, is that an out-of-state seller with no physical presence in Alabama (i.e., remote seller) is required to collect and remit Alabama sellers use tax through the Simplified Sellers Use Tax (SSUT) program if total retail sales (taxable and nontaxable) into Alabama for the previous calendar year are above $250,000. Remote sellers with sales below this amount may also apply to participate in the SSUT program. Alternatively, this obligation may be satisfied by collecting and remitting under Alabama’s traditional state and local use tax regime.
A remote seller is an out-of-state seller that has no physical presence in Alabama.
All remote sellers directly selling over the $250,000 threshold of total retail sales delivered into Alabama the previous calendar year are required to collect and remit taxes on sales into Alabama beginning on October 1, 2018. New standards for administering simplified sellers use tax laws for remote sellers will be developed by rule, with a small seller exception for remote sellers who do not have annual sales of products and services into the state of more than $250,000. Any small seller exception adopted will not apply to sellers with a physical presence in Alabama. However, remote sellers with sales below the threshold may still apply to participate in the simplified sellers use tax program.
The calculation of the $250,000 sales threshold for out-of-state sellers and marketplace facilitators provided for in Rules 810-6-2-.90.03 and 810-6-2-.90.04 should only include retail sales made directly by the seller, whether taxable or non-taxable. Sales that should not be included in the calculation are wholesale sales for resale where the buyer presents an Alabama issued sales tax license/resale certificate and any sales taking place through a SSUT participating marketplace that is collecting Alabama taxes on behalf of the marketplace sellers.
Alabama requires remote sellers to begin collecting and remitting on October 1, 2019. To ensure the remote seller’s registration is properly processed by October 1, 2019, the remote seller should complete the registration at least three weeks prior to October 1, 2019. The remote seller may indicate a first sales date of October 1, 2019 on the application. A remote seller may apply or register and begin collecting tax at any time prior to October 1, 2019, but the first date of collection should be consistent with the first sales date indicated on its application.
Remote sellers can apply for participation in the SSUT program, to begin collecting and remitting Alabama’s simplified sellers use tax, by clicking on the “Obtain a new tax account” link on the My Alabama Taxes website: https://myalabamataxes.alabama.gov.
Remote sellers that were registered in Alabama prior to the U.S. Supreme Court’s decision in South Dakota v. Wayfair, Inc., are not impacted by this decision and may continue to collect and remit sales and use tax or apply for participation in the SSUT program.
Remote sellers who are required or elect to collect and remit tax should do so on all sales of taxable products and services into Alabama unless an exemption applies (e.g., resale certificate, exemption certificate, direct pay permit) or the sales occur through a SSUT participating marketplace that is collecting Alabama taxes on behalf of the marketplace seller. The exempt sales and eligible marketplace sales should be included in the Gross Sales Amount and Deductions amount reported on the return.
No, the fee applies at the point of sale from the retailer to the consumer.
If a remote seller registers for a SSUT account based solely on the U.S. Supreme Court’s decision in South Dakota v. Wayfair, Inc., the remote seller is not required to collect and remit SSU tax on sales that occurred prior to October 1, 2019. A remote seller may voluntarily register and collect simplified sellers use tax at any time prior to October 1, 2019.
No, effective August 4, 2004, this fee does not apply to tires used on devices moved exclusively by human power.
Remote sellers should collect and remit tax on all taxable sales into Alabama, including sales made online, through a marketplace, catalog sales, etc. starting October 1, 2019, with the exclusion of sales taking place through a participating marketplace where the marketplace collects and remits on behalf of its 3rd party sellers. A remote seller who exclusively sells through a participating marketplace is not required to register for a sales/use tax account with the State of Alabama.
Yes, the fee is on the sale of a tire.
All entities are required to register for My Alabama Taxes (MAT). It’s a quick and easy way to file tax returns, make payments, view letters, manage your accounts, and conduct other common transactions. The following information is required to register for a tax account within MAT:
An in-state seller who exclusively sells through a participating marketplace, where the marketplace collects and remits on behalf of its 3rd party sellers, is not required to register for a sales/use tax account but should instead apply for an exemption certificate with the State of Alabama. (The in-state seller must have the exemption certificate to purchase items for resale tax exempt.)
If the same tire is retread multiple times by the same consumer, then the fee only applies to the first time the retread tire is purchased; however, if the retread tire is processed multiple times and sold to different consumers each time, then the fee would apply each time the retread is resold.
No, the online registration system is a free service to taxpayers.
SSUT participants are required to file monthly returns and remit monthly payments through the MAT (myalabamataxes.alabama.gov) online system. Participants may also apply to make payment by ACH Credit payment method.
SSUT returns are filed through Alabama’s online MAT system. Payments are also made through the MAT system or through the ACH Credit payment method. The website for MAT is: myalabamataxes.alabama.gov.
No, this fee is only on the sale of tires.
Applications are processed with three to five business days.
The SSUT 8% flat tax applies to all sales regardless of the locality shipped to in Alabama. The collection and remittance of the simplified sellers use tax relieves the eligible seller and the purchaser from any additional state and local sales or use tax on the transaction.
No. All governmental organizations, whether federal, state, or local governing bodies, are exempt from payment of this fee.
No. You will receive the tax account certificate, containing the account number, by mail.
SSUT participants are not subject to audit by an Alabama locality for SSUT, but may be audited by the Alabama Department of Revenue.
No, the Department of Revenue is only responsible for collecting the environmental fee. According to the Alabama Department of Environmental Management (ADEM), nothing has changed regarding the disposal of the scrap tires.
No, the application cannot be saved at this time. All information is needed when you begin the application.
Purchasers in Alabama may see an increased number of remote sellers that are charging simplified sellers use tax.
As before, if a remote seller does not charge simplified sellers use tax on a taxable sale in Alabama, the purchaser should report use tax on the purchase price through consumers use and local tax returns. An individual may also report the use tax on his or her individual income tax return.
You should not charge sales tax if the fee is listed separately on the customer’s receipt; however, if the fee is included in the price of the tire, then sales tax would apply.
No. Contact the Entity Registration Unit within 24 hours at (334) 242-1584.
The marketplace seller or the customer may request a refund of overpaid taxes by clicking on the “Request a SSUT Refund” link on the My Alabama Taxes homepage: myalabamataxes.alabama.gov.
Visit myalabamataxes.alabama.gov. Complete the application and return it to this office for processing. You will then be assigned an account number and mailed the forms for remitting the fee monthly. There is no application fee.
No. To update information after receiving a tax account number, sign in to your My Alabama Taxes account and update the necessary information.
The following resources are available on the Department’s SSUT webpage
Apply for Simplified Sellers Use Tax Account
Act 2015-448
Act 2017-82
Act 2018-539
Act 2019-382
Notice: Act 2019-382 – SSUT Amnesty, Class Action Protection, and Clarification of Nontaxable Transactions (07/09/2019)
Notice: Tax Guidance for Online Sellers (07/03/2018)
Notice: Marketplace Facilitators and Sellers (05/01/2018)
SSUT Law (§40-23-191 through §40-23-199)
SSUT Rules (810-6-2-.90.02 and 810-6-2-.90.03)
Yes, this fee applies to the sale of the replacement tire.
If the entity is a Corporation, Partnership, Single Member LLC, etc., you need to register with the SOS to receive the state assigned Charter Number which is needed to complete the application. If the entity is a sole proprietorship, you are not required to register with the SOS, but you will need to confirm availability of a trade name, should you plan to operate under a different name other than the owner’s legal name.
The Marketplace Facilitator (MPF) Law goes into effect on January 1, 2019. It stipulates that the responsibility for collecting and remitting simplified sellers use tax, or reporting such sales, for online purchases by customers in Alabama falls on the company supporting the marketplace rather than on the individual sellers.
Yes, because you will still be responsible for disposal of the tires. The State is not responsible for picking up the used tires. Nothing has changed regarding the disposal of the tires.
