The utility service use tax is an excise tax levied on the storage, use, or other consumption of electricity, domestic water, natural gas, telegraph, and telephone services in the State of Alabama. The authority for collecting the utility service use tax is found in Sections 40-21-100 through 40-21-107, Code of Alabama 1975.
The amount of the tax shall be determined by the application of rates against the sales price of such services in the State of Alabama. The tax shall be computed monthly with respect to each person to whom such services are furnished, in accordance with the following table:
If the total sales price of the utility services furnished by a utility and stored, used, or otherwise consumed by a person in one month:
The tax with respect to the utility is:
Not over $40,0000
4 % of such gross sales or gross receipts
Over $40,000 but not over $60,000
$1,600 plus 3% of excess over $40,000
$2,200 plus 2% of excess over $60,000
The rate of tax against the sales price of such telegraph services or telephone services in the State of Alabama is 6% on all gross sales or gross receipts.
The utility service use tax is due monthly, with returns and remittances to be filed through the My Alabama Taxes (MAT) filing system on or before the 20th day of the month for the previous month’s sales. The utility service use tax provider is entitled to a collection fee in consideration of the costs incurred by the utility provider in collecting and remitting the tax levied by Section 40-21-102, Code of Alabama 1975; the amount deducted and retained by such provider shall be one-fourth of one percent of the gross amount of such tax billed. Note: If paying via EFT, the EFT payment information must be transmitted by 4:00 p.m. (Central Standard Time) on or before the due date, to be considered timely paid.
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.
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.
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.