As of November 30, 2018, the federal government updated its credit card program. The General Services Administration (GSA) has entered into contracts with Citibank and US Bank under the program named GSA SmartPay® 3. (www.gsa.gov/gsasmartpay) The following information is provided to assist Alabama vendors in determining whether or not tax applies to transactions paid by GSA SmartPay® 3 cards.
The GSA SmartPay® 3 program provides four business lines (card types): Purchase, Travel, Fleet, and Integrated (includes fleet, travel and/or purchase functionality and offers a single card for all purchases.) These cards/accounts can be Centrally Billed Accounts (CBAs) or Individually Billed Accounts (IBAs).
Centrally Billed Accounts (CBAs) are charge card accounts in which all charges are billed directly to the federal government and paid directly by the federal government to the issuing bank. (Sales tax is not due on credit card purchases which are centrally billed to and paid by the federal government. Lodgings tax is not due on charges for lodgings which are centrally billed to and paid by the federal government.)
Individually Billed Accounts (IBAs) are charge card accounts in which charges are paid directly by the cardholder/federal employee to the issuing bank; the federal employee is then reimbursed by the government. (Sales tax and lodgings tax are due on credit card transactions where the purchases or charges for lodgings are billed to and paid by federal employees, who are then reimbursed by the federal government.)
Tax Advantage Travel Accounts (CBA/IBA) are charge card accounts in which charges for rental cars and lodging are paid directly by the federal government to the issuing bank and charges for travel-related purchases such as meals and incidentals are paid directly by the cardholder/federal employee to the issuing bank; the federal employee is then reimbursed by the government. (Sales tax and lodgings tax are due on credit card transactions where the purchases or charges are billed to and paid by federal employees, who are then reimbursed by the federal government.)
Department of the Interior: With the exception of the purchase of meals and incidental travel expenses which are individually billed and subject to sales tax, transactions paid for with the Department of the Interior’s integrated card are centrally billed and exempt from sales and lodgings tax. Purchases of fuel paid for by this card are not exempt from state fuel excise taxes.
The Department of the Interior GSA SmartPay® 3 charge cards can be identified by their unique prefixes and account numbers, government-designed artwork, and wording that indicates that the card is for official transactions for the U. S. Government. The Department of the Interior Integrated Card account numbers begin with 5568 26.
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Purchase
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Travel
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Fleet
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Prefix (1st four digits)
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4614 – Visa 4715 – Visa 4716 – Visa 5565 – MasterCard 5568 – MasterCard |
4614 – Visa 4615 – Visa 4716 – Visa 4486 – Visa 5565 – MasterCard 5568 – MasterCard |
4614 – Visa 4486 – Visa 5563 – MasterCard 5565 – MasterCard 5568 – MasterCard 5565 – WEX 6900 – WEX 7071 – WEX 7088 – Voyager |
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6th Digit
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NA |
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NA |
*Tax Advantage card purchases are centrally billed for lodgings and rental car expenses and individually billed for meals and incidentals.
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.
