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.
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.
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.
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.
