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View All Deductions and Credits, Financial Institution Excise Tax FAQs

What taxes are allowed as credits?

State, county and city sales and use taxes paid on tangible personal property purchased and paid for by the institution for its consumption;
State utility taxes paid on telephone, electrical power, gas or water;
Rental or leasing taxes paid directly to the State for the privilege of leasing tangible personal property to others within the State of Alabama;
Increases in the city or county license taxes imposed upon financial institutions between July 10, 1943 and October 1, 1951.
Credits will not be allowed on any taxes not levied on the financial institution.

Examples of these taxes:

State, county or city sales or use taxes on items purchased for resale such as checks, promotional items or equipment;
Gross receipts taxes levied on the seller;
Rental or leasing taxes paid to others;
Federal taxes of any nature;
Taxes paid to contractors or others on equipment attached to real property or in the construction of buildings, etc.;
the tax imposed by this chapter.
The Alabama Department of Revenue now requires the use of Schedule EC, when claiming business tax credits.

Taxes not taken as a credit may be allowed as a deduction.

  • State, county and city sales and use taxes paid on tangible personal property purchased and paid for by the institution for its consumption;
  • State utility taxes paid on telephone, electrical power, gas or water;
  • Rental or leasing taxes paid directly to the state for the privilege of leasing tangible personal property to others within Alabama;
  • Increases in the city or county license taxes imposed upon financial institutions between July 10, 1943, and October 1, 1951.

 

Credits will not be allowed on any taxes not levied on the financial institution.

Examples of these taxes:

  • State, county or city sales or use taxes on items purchased for resale such as checks, promotional items or equipment;
  • Gross receipts taxes levied on the seller;
  • Rental or leasing taxes paid to others;
  • Federal taxes of any nature;
  • Taxes paid to contractors or others on equipment attached to real property or in the construction of buildings, etc.;
  • the tax imposed by this chapter.

 

The Alabama Department of Revenue now requires the use of Schedule EC, Business Credits when claiming business tax credits.

Taxes not taken as a credit may be allowed as a deduction.

Related FAQs in Deductions and Credits, Financial Institution Excise Tax

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.

Step by Step Instructions for License Renewal

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.

Vessel Length Chart

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.