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NOTICE All Concentration Yards, Manufacturers, Processors and Producers of Forest Products

Posted: January 2, 2019

The purpose of this notice is to provide the filers of the forest products severance tax return and the forest products manufacturers tax return important information regarding the tax.

Rule 810-8-5-.06
The Department has implemented a new administrative rule to clarify who is liable for the Forest Products Severance Tax and the Forest Products Manufacturers Tax on certain forest products and to provide guidance on the application of the taxes. For your convenience, the administrative rule is available on the Department’s website at https://www.revenue.alabama.gov/wp-content/uploads/2018/10/810-8-5-.06-final-1.pdf.

Rate Adjustment
According to Code Section 9-13-110, Code of Alabama 1975, as amended, if the forest products tax collections for fiscal year ending 2018 are less than the forest products tax collections for fiscal year 2017, a one-time rate adjustment is to be calculated. The Department has reviewed the collections and determined that a rate increase will not be necessary. Accordingly, the forest products severance tax rates will remain the same.

If you have questions regarding the Forest Products Severance and Forest Products Manufacturers Taxes, please visit the Department’s website at https://revenue.alabama.gov/businesslicense/forest-products-severance-tax/, or you may contact our office at the below address or telephone number.

Business and License Tax Division
Severance and License Section
P. O. Box 327560
Montgomery, AL 36132-7560

Click here to download a .pdf version of this notice.