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Frequently Asked Questions

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Who do I contact for assistance with the Local Government Portal?
What credits are required to be pre-certified through My Alabama Taxes?
If you have questions or need to provide information regarding the Medical Cannabis Privilege Tax, electronic responses with explanations and attachments may be sent to:
How do you claim a tax credit that requires pre-certification using My Alabama Taxes?
How do you claim credits that do not require pre-certification by an individual income taxpayer?
How do you claim credits that are passed through from a Partnership, S-Corporation, Estate, or Trust?
Who should you contact for assistance with the credit submission process or questions about individual income tax credits?
If property is transferred to a relocation company, is the relocation company subject to the withholding requirements of Section 40-18-86, Code of Alabama 1975?
Is a buyer required to inquire as to whether a LLC-seller is a “disregarded” entity?
Is a single-member limited liability company (SMLLC) whose status is disregarded for federal income tax purposes considered to be the seller for purposes of Section 40-18-86, Code of Alabama 1975?
One of the conditions for a nonresident seller to be considered a deemed resident under Section 40-18-86, Code of Alabama 1975, is that the seller has filed Alabama income tax returns, or appropriate extensions, for the two income tax years immediately preceding the year of the sale. What if the sale occurs before the due date for the previous year’s income tax return?
Can a nonresident seller qualify as a deemed resident in order to be exempt from withholding, if he satisfies some, but not all of the listed conditions?
If the seller is a corporation, how does it claim the withholding credit since the corporation income tax return does not have a line for tax withheld?
If tax is withheld from a nonresident seller who is a partnership, S corporation, or limited liability company, how does the seller claim credit for the withholding?
Does the withholding required under Code of Alabama 1975, Section 40-18-86, apply to the sale or transfer of timber located in Alabama by a nonresident of Alabama?
If the seller is a financial institution, is the sale subject to withholding?
If the seller is an insurance company, is the sale subject to withholding?
If the seller of the property is an exempt organization, is the sale subject to withholding?
If an Alabama resident relocates to another state and buys another residence, does his Alabama residence cease to be his principal residence for purposes of Alabama law?
Is withholding required on a transaction that qualifies as a Section 1031 exchange under the Internal Revenue Code? What if the transaction is a “deferred” Section 1031 exchange?
Is withholding required on a like-kind exchange of property?
Must a certificate of exemption (Form NR-AF3) be filed when the seller is exempt by law from the withholding requirement?
If the seller is an Alabama resident, must he provide the buyer with a sworn affidavit Form NR-AF1 (or for deemed residency)?
If a buyer reasonably relies on a seller’s sworn affidavit of residency, will the buyer be liable if it later turns out that the seller does not meet the conditions of deemed residency?
Is withholding required when there are several owners, and some of the owners are nonresidents?
Are only transactions which result in taxable income to the seller subject to withholding?
How is the amount to be withheld determined?
So the nonresident seller is still required to file an Alabama income tax return, even with the withholding?
What kind of tax is this? Sales tax? Real estate transfer tax?
What is the duration of a tax lien?
Are there any other exemptions allowed?
Does the new fee apply to employees leased from an employee staffing or leasing agency?
Does the fee apply to the wages of employees working on a project who are not directly on site, such as the employees of manufacturers, engineering firms or fabricators?
Will the new fee apply to the wages of employees performing routine maintenance of a commercial or industrial nature at an Alabama jobsite?
Are all wages included?
Is this fee withheld from the wages of employees?
Can this fee be paid with my withholding tax return?
Is there a contract amount?
Does this fee include all contractors?
What employees are included in the Act?
When is this fee due?
How is the fee paid?
How is the fee calculated?
What kind of fee is this?
What is the purpose of the new fee?
Is there a limit to the amount of stamps that can be ordered online?
Will there be confirmations sent that an order has been received and processed?
Can multiple orders be future dated to cover a specific time period?
How do we notify you of any special shipping methods for a stamp order?
How can a correction be made before submission of an order if the wrong stamp type or quantity is chosen?
Once a cigarette tax stamp order has been submitted, how much time is allowed to cancel that order?
What type stamps may be ordered using MAT?
When is the new system available to use to submit my cigarette tax stamp order?
What if I failed to submit my certification application and application fee by the due date of April 30?
When will the Directory be available online?
Section 40-18-2, Code of Alabama 1975, imposes a tax on every nonresident individual receiving income from property owned or business transacted in Alabama. Also, Section 40-18-14 states that the taxable income of a nonresident individual includes only income from property owned or business transacted in Alabama. An installment note, held by someone who is not in the business of holding installment notes, derived from the sale of investment real property or rental real property by a nonresident individual, would be intangible property that was acquired as income from property held in this state or as a result of business done in this state. “Business income” is defined in Section 40-27-1, Code of Alabama 1975, as income arising from transactions and activities in the regular course of the taxpayer’s trade or business and includes income from tangible and intangible property if the acquisition, management, and disposition of the property constitute integral parts of the taxpayer’s regular trade of business operations. Accordingly, interest that is attributable to the installment note in this situation is taxable for Alabama purposes. Is the interest from the installment note subject to the withholding requirements of Section 40-18-86, Code of Alabama 1975?
Is property that is sold or transferred by a nonresident as part of an installment transaction subject to the withholding requirements of Section 40-18-86, Code of Alabama 1975, and if so, how is withholding on the installment sale handled?
When is the certification application and application fee due?
How much is the fee to be listed on the Directory?
How do manufacturers get listed on the Directory?
What is a certifying e-liquid manufacturers and manufacturers of alternative nicotine products?
What will be listed on the E-Liquid and Alternative Nicotine Products Directory?
Is there a tax on rolling papers?
Are there county revenue stamps that I must apply to my product?
How are cigars taxed for county purposes?
Are there county taxes on chewing tobacco, snuff, smoking tobacco, cigars, or rolling papers?
What are the county tax rates on cigarettes?
I operate a business in a county that is not administered by the State.  Who should I contact?
How do I pay state-administered county tobacco taxes?
How do I obtain state cigarette stamps?
Can we sell single cigarettes?
I am located in Alabama and want to distribute cigars at wholesale in Alabama and to other states. I will receive these cigars from suppliers in the Dominican Republic, Puerto Rico and other states. What are my filing requirements?
I am going out-of-business and wish to cancel my stamping permit. How can I receive a refund for the cigarette revenue stamps that I did not use?
I am located in Alabama and want to distribute cigars at wholesale in Alabama and to other states. I will receive these cigars from suppliers in the Dominican Republic, Puerto Rico and other states. What are my filing requirements?
How much are the stamps for cigars, snuff, chewing tobacco and smoking tobacco?