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.)
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.
