Are all non-profit entities exempt from sales and use taxes?
No, the non-profit entity must be specifically listed in the law as being exempt from sales and use taxes. Many charities and nonprofit organizations with a statutory exemption are listed in Title 40 Chapter 9. The law is found HERE
No, the department does not issue certificate of exemptions to farmers. However, there is an exemption form for certain agricultural purposes found in Section 40-23-4.3, Code of Alabama 1975. A taxpayer may print the form and fill it out; and give it to the vendor. Most farming products are not exempt from sales and use taxes but are taxed at the lower farming rate.
Yes. All persons or companies, other than governmental entities as defined in Section 40-9-60, Code of Alabama 1975, exempt from the payment of Alabama sales, use, and lodgings tax, regardless of the type of transaction or whether the tangible personal property is subject to sales and use tax, or whether the accommodations are subject to lodgings tax, may be required to file an information report in a manner as prescribed by the Department of Revenue. Such required informational reports shall be a prerequisite for the renewal of certificates of exemption.
You may submit a new application or if you have an application on file with the department that is less than three years old and the information is still current, you may send an email request to email@example.com to renew the certificate of exemption.
The certificate of exemption shall be valid for one year from the date of issuance and shall be renewed annually each subsequent year before the end of the month in which the certificate expires. Any person or company that fails to obtain or renew a certificate of exemption prior to its expiration may not make tax exempt purchases or rent tax exempt accommodations after the expiration.
Yes. A taxpayer applying for a certificate of exemption as a sole-proprietorship must provide a valid social security number with a picture identification. An entity applying as a corporation or LLC must provide a copy of their IRS issued letter verifying their federal identification number.
You must complete the appropriate application found on the website at www.revenue.alabama.gov. The applicable form will be ST: EX-A1 (For Wholesalers, Manufacturers, and Other Product Based Exemptions) or ST: EX-A1-SE (For Statutorily Exempt Entities). Follow the instructions on the application and send the application to the appropriate office. Form ST: EX-A1 must be mailed to the appropriate Taxpayer Service Center listed in the instructions. Form ST: EX: A1-SE must be emailed to firstname.lastname@example.org or sent by U.S Postal mail to Sales and Use Tax Division, Exemption Unit, P. O. Box 327710, Montgomery, AL 36132-7710.