reglab/statecodes huggingface dataset:
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.17 - Federal Production Credit Associations

Current through Register Vol. 42, No. 9, June 28, 2024
Sales of property to federal production credit associations for
				use in conducting the activities of such associations as authorized by Federal
				statutes are not subject to the sales tax; provided, however, this exemption
				does not apply with respect to any federal production credit association after
				the stock held in it by the production credit corporation has been
				retired.
Author:
Dan DeVaughn
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-23-4(17),
				  40-23-31,
				  40-23-83.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.18 - Federal Savings And Loan Associations

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Alabama sales or Alabama use taxes,
			 whichever may apply, are due on property sold to federal savings and loan
			 associations.
(2) The only
			 limitation placed upon the taxation of a federal savings and loan association
			 is that the tax imposed on the federal institution shall not be greater than
			 that imposed on other similar local mutual or cooperative thrift and home
			 financing institutions.
Author:
Dan DeVaughn
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-23-2(1),
				  40-23-31,
				  40-23-83.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.19 - Feed For Livestock And Poultry

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Sales of feed for livestock and poultry
			 (not including prepared food for dogs and cats) are exempt from sales and use
			 taxes. (§§
								40-23-4(a)(4) and
			 40-23-62(7))
(2) The following items qualify
			 for exemption when sold for consumption by livestock or poultry;
(a) Stale bread, table waste, and other
			 foodstuffs which have become unsuitable for sale for human
			 consumption
(b) Salt and salt
			 blocks
(c) Bone meal and oyster
			 shells
(d) Blackstrap
			 molasses
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.20 - Fertilizer

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Sales of
			 fertilizer when used for agricultural purposes are exempt from sales and use
			 tax. [Sections
			 40-23-4(a)(2) and
			 40-23-62(5)]
(2) The word "fertilizer" as used
			 in the exemption sections referenced above means any material (not including
			 cottonseed meal when unmixed with other material) which results in an increase
			 in plant growth when added to the basic natural substances in which plants are
			 grown. Basic natural substances, including sand, clay, top soil, and water are
			 not to be considered to fall within the meaning of the word "fertilizer" as
			 used in those sections.
(3)
			 Ammonium nitrate when used as an explosive, and not for agricultural purposes
			 as a fertilizer, is taxable when sold to the consumer or user.
Author:
Dan DeVaughn
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-23-31,
				  40-23-83.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.20.01 - Exemption Certification Form Respecting Fertilizers, Insecticides, Fungicides, And Seedlings (Form ST: EXC-1)

Current through Register Vol. 42, No. 9, June 28, 2024
(1) When a retail purchaser purchases
			 tangible personal property which is exempt from sales tax pursuant to Section
			 40-23-4(a)(2), (4), or
			 (22)   or use tax pursuant to Section
			 40-23-62(5), (7), or
			 (23); the filing by said purchaser of a
			 certificate in the following form shall relieve the seller of any obligation to
			 collect sales or use tax on the items purchased in conjunction
			 therewith:
ALABAMA DEPARTMENT OF REVENUE
SALES AND USE TAX DIVISION
EXEMPTION CERTIFICATION RESPECTING FERTILIZERS,
INSECTICIDES, FUNGICIDES, AND SEEDLINGS
Purchaser's
Name:____________________________________________________________
Address:_________________________________________________________
City:______________________ State:___________ Zip Code:
				____________
SCS Farm
				Number:_________________________________________________
(if available)
I, the undersigned, hereby certify that the items of tangible
				personal property purchased from (name of retailer) will be used for the
				exempt: agricultural purposes described in subdivisions (2), (4), or (22) of
				Section
				40-23-4(a) or subdivisions (5), (7), or (23) of Section
				40-23-62,
Code of Ala. 1975
, as Amended, and therefore may be
				purchased without payment of sales or use tax under Alabama law. I am aware
				that liability for payment of any sales or use tax ultimately determined to be
				applicable with respect to the items so purchased will be the exclusive
				responsibility of the undersigned.
Signature:____________________________
				Date:__________________
(2) The form
			 outlined in paragraph (1) shall be referred to as Form ST: EXC-1 Exemption
			 Certification Respecting Fertilizers, Insecticides, Fungicides, and Seedlings
			 and the following procedures should be followed in conjunction with the
			 execution of said form:
(a) all of the
			 information requested on the form should be completed;
(b) the seller should furnish a copy of the
			 completed certificate, with sales receipt attached, to the purchaser;
			 and
(c) the seller should retain
			 the original certificate and a copy of the sales receipt for a three-year
			 period.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.21 - Sales of Fish, Bait, and Minnows

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Sales of domesticated fish and minnows
			 produced on farms are exempted from sales and use tax when such sales are made
			 by the producer, a member of his immediate family, or for him by a person
			 employed to assist in the production thereof.
(2) Fish and minnows are considered products
			 of a farm only when they are raised from captive, domesticated stock owned by
			 the producer or raised from fry to fingerlings acquired from commercial or
			 publicly owned hatcheries. The exemption does not apply either with respect to
			 sales of fish or minnows which originated as wild life in flowing streams,
			 natural or artificial lakes or ponds, or with respect to retail sales of fish
			 or minnows made by fish market operators, bait dealers, or other vendors who
			 have purchased such fish or minnows for resale purposes.
(3) Sales of domesticated fish and minnows
			 produced on farms do not qualify for the exemption contained in §
								40-23-4(a)(45) for sales of agricultural products by the person or corporation that planted or
			 cultivated, and harvested such agricultural products.
(4) Sales of bait used to capture or attempt
			 to capture fish or other seafood in the process of commercial fishing by a
			 holder of a commercial license issued pursuant to Title 9, Chapter 12, Code of
			 Alabama 1975, is considered a wholesale sale and is exempt from sales and use
			 taxes. Commercial fishing, pursuant to §
								40-23-1, is the activity of
			 catching or processing fish or other seafood regularly and exclusively as a
			 means of livelihood by a holder of a commercial license issued pursuant to
			 Chapter 12 of Title 9. The term includes shellfish farmers, shrimpers,
			 oysterers, lobsterers, and crabbers.
Author:
Dan DeVaughn, Christy Vandevender
Statutory Authority:
Code of Ala.
				  1975
,
				  40-23-31,
				  40-23-83.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.22 - Florists, Sales Of Nursery Stock And Floral Products By Florists

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Sales of
			 nursery stock and floral products by the florist who planted or cultivated, and
			 harvested said items, when the land is owned or leased by the seller, are
			 exempt from sales and use tax. Other sales of nursery stock and floral products
			 by the seller are taxable.
(2) A
			 florist who claims the exemption outlined in paragraph (1) must keep sufficient
			 records to document such claims. In the absence of sufficient documentation,
			 the seller will be liable for the sales or use tax due on all sales for which
			 exemption claims cannot be verified by the department.
Author:
Dan DeVaughn, Christy Vandevender
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-23-2,
				  40-23-4,
				  40-23-31,
				  40-23-83.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.23 - Fluid, Milk

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Sales of
			 milk and milk products made by milk processors and distributors are subject to
			 sales and use tax.
The only exemption for milk and milk products is the producer's
				exemption. (See Rule
				810-6-3-.01,
				Agricultural Products) (Readopted through APA October 1, 1982) [Sections
				40-23-2(1),
				40-23-4(a)(5),
				40-23-61(a) and
				40-23-62(8)]
(2) The exemption
			 contained in Section
			 40-23-4(a)(44) for sales of agricultural products by the person or corporation that planted,
			 cultivated, and harvested such agricultural products does not apply to sales of
			 milk and milk products by the producer, processor, or distributor.
Author:
Dan DeVaughn
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-23-31,
				  40-23-83.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.23.01 - Food Banks

Current through Register Vol. 42, No. 9, June 28, 2024
(1) The
			 term "food bank" as used in this rule shall mean any entity located within
			 Alabama that is an affiliated food bank of the "America's Second Harvest The
			 Nation's Food Bank Network" or their subsidiary distribution organizations
			 (SDOs).
(2) The term "subsidiary
			 distribution organization (SDOs)" as used in this rule shall mean smaller food
			 banks or larger agencies allied with affiliated food banks that are private,
			 nonprofit, charitable organizations providing important community services.
			 Although some are agencies, all SDOs distribute part of their food to other
			 charities for direct distribution to clients.
(3) The food banks and SDOs listed in
			 paragraphs (4) and (5) below located within the State of Alabama are exempt
			 from the payment and collection of state, county and municipal sales and use
			 taxes. This exemption is effective June 14, 2007. (Act No. 2007453)
(4) The following list includes the current
			 food banks that are exempt as specified in paragraph (3) above:
(a) Bay Area Food Bank, Theodore,
			 AL
(b) Food Bank of North Alabama,
			 Huntsville, AL
(c) Montgomery Area
			 Food Bank, Montgomery, AL
(d)
			 United Way Community Food Bank, Birmingham, AL
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.24 - Sales To Foreign Governments, Diplomatic And Consular Officials

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Sales to a
			 foreign government or to its agents for use of a foreign government are subject
			 to Alabama Sales Tax unless they are immune because of a treaty between the
			 foreign government and the United States. Alabama tax should be collected in
			 the absence of proof that the foreign power is immune because of such a
			 treaty.
(2) Exemptions of Sales.
(a) Tangible Personal Property Transactions
			 Exemption. Alabama Sales Tax and Alabama Use Tax does not apply to sales of
			 tangible personal property to foreign diplomatic and consular officials
			 identified by the U.S. Department of State or American Institute in Taiwan
			 (AIT) as exempt from the tax pursuant to treaties or other diplomatic
			 agreements with the United States.
(b) Lodgings Tax Transactions Exemption.
			 Lodgings tax does not apply to rooms, lodgings, or accommodations rented or
			 furnished to foreign diplomatic and consular officials, to the extent that such
			 persons have been identified by the U.S. Department of State or AIT as exempt
			 from the tax pursuant to treaties or other diplomatic agreements with the
			 United States. (U.S. Constitution, Article VI)
(c) Motor Vehicle Transactions Exemptions.
			 Tax exemptions allowed on vehicle purchases by all diplomatic missions and
			 members in the United States must be approved or denied by the U.S. Department
			 of State, Office of Foreign Missions, before the transaction is completed.
			 Prior to completing the transaction, vendors selling vehicles pursuant to a
			 diplomatic tax exemption must follow these procedures:
1. The purchaser should present a mission tax
			 exemption card, a personal tax exemption card, or a protocol identification
			 card to the seller. Members of the United Nations (UN), Organization of
			 American States (OAS), World Bank (WB), and the International Monetary Fund
			 (IMF) requesting a diplomatic exemption on the purchase of a vehicle must
			 present their personal tax exemption card.
2. The vendor must contact the U.S.
			 Department of State, Office of Foreign Missions for a determination on the
			 tax-exempt status of the purchaser.
3. The U.S. Department of State, Office of
			 Foreign Missions, will determine the tax-exempt status of the purchaser and
			 provide a letter to the vendor setting forth that determination.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.24.01 - Foreign Diplomatic And Consular Officials (Repealed)

Current through Register Vol. 42, No. 9, June 28, 2024
Author:
Ginger Buchanan
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-2A-7(a)(1),
				  40-2A-7(a)(5),
				  40-23-4(a)(17),
				  40-23-9,
				  40-23-62,
				  40-23-83.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.25 - Fuel Oil Used In Firing Kilns

Current through Register Vol. 42, No. 9, June 28, 2024
(1) The term "kiln" as used in
Code of Ala. 1975
, Sections
			 40-23-4(a)(14) and
			 40-23-62(15) and in this regulation shall mean an oven, stove, chamber, or other device or
			 enclosure to provide thermal processing of nonmetallic articles or substances
			 in a controlled temperature environment or atmosphere, often by direct
			 convection or radiation heat transfer. A "kiln" is used in the high temperature
			 treatment of nonmetallic materials and generally operates at sufficiently high
			 temperatures to require that its walls be constructed of refractory materials.
			 The term "kiln" as used in the aforementioned Code sections and in this
			 regulation shall not include a furnace, oven, chamber, or other device or
			 enclosure used in the melting, fusing, or manufacture of metal. Examples of
			 devices which qualify as "kilns" are brick kilns, lime kilns, dry kilns (for
			 lumber), and cement kilns. Examples of devices which do not qualify as "kilns"
			 are blast furnaces, basic oxygen furnaces, and open hearth furnaces used in
			 steel manufacturing. (State of Alabama v. American Brass, Inc., Court of Civil
			 Appeals, decided November 5, 1993.)
(2) Sales of fuel oil purchased as fuel for
			 kilns used in manufacturing establishments are exempt from sales and use tax.
			 [Sections
			 40-23-4(a)(14) and
			 40-23-62(15)]
(3) Where a manufacturer uses
			 fuel oil for both taxable and nontaxable purposes, the supplier of fuel oil
			 must collect and pay the state sales tax on all of the fuel oil he delivers to
			 a storage facility from which withdrawals are made for a taxable use regardless
			 of the fact that some part of the fuel oil withdrawn is for an exempted use. In
			 these instances where a manufacturer maintains separate facilities for storing
			 fuel oil for taxable and nontaxable uses, the supplier is authorized to deliver
			 tax free to the facility maintained for storing fuel oil for a nontaxable use.
			 The supplier is burdened with the responsibility of knowing the usual and
			 customary use made of the fuel oil delivered to his customers.
Author:
Dan DeVaughn
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-23-4(14),
				  40-23-31,
				  40-23-83.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.26 - Gas Districts

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Any
			 gas district organized under the provisions of Section 11-50-390-417, would not
			 be required to report and pay any state or county sales and use taxes on and
			 after September 1, 1965.
(2) Gas
			 districts would not be required to pay municipal privilege license tax on and
			 after January 1, 1966. (Quarterly Report - Attorney General - Volume No. 124,
			 P. 23, September 19, 1966)
Author:
Dan DeVaughn
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-23-31,
				  40-23-83.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.27 - Gases: Acetylene, Oxygen, Hydrogen

Current through Register Vol. 42, No. 9, June 28, 2024
(Repealed).
Author:
Dan DeVaughn
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-2A-7(a)(5),
				  40-23-31,
				  40-23-83,
				  40-23-1(a)(9) b.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.28 - Gas, Motor Fuels and Lubricants

Current through Register Vol. 42, No. 9, June 28, 2024
Gasoline, liquefied natural gas, compressed natural gas, motor
				fuel, and lubricants otherwise taxed, are exempted from sales and use taxes as
				follows:
(a) Gasoline and substitutes
			 therefor (not including diesel fuel, tractor fuel, distillate, liquefied gas,
			 compressed gas, kerosene, fuel oil, crude oil, and other liquid fuel oil and
			 gases commonly used for heating, lighting or industrial purposes), lubricating
			 oil and greases, and substitutes therefor commonly used in lubricating or
			 oiling the moving parts of machines or machinery are exempted from sales and
			 use taxes regardless of use.
(b)
			 Diesel fuel, tractor fuel, distillate, liquefied gas, compressed gas, kerosene,
			 fuel oil, crude oil, and other liquid fuel oil and gases commonly used for
			 heating or lighting or industrial purposes are exempted from sales and use
			 taxes when otherwise taxed by the motor fuels excise tax statutes of this
			 state.
Authors:
Dan DeVaughn, Michele Mayberry
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-2A-7(a)(5),
				  40-23-4(a)(1),
				  40-23-31,
				  40-23-62(4),
				  40-23-83.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.29 - Grass Sod

Current through Register Vol. 42, No. 9, June 28, 2024
(1) The gross
			 receipts from sales of grass sod of all kinds and character when in the
			 original state of production or condition of preparation for sale, when such
			 sales are made by the producer or members of this family or for him by those
			 employed by him in the production thereof, are exempt from sales and use tax.
			 This exemption does not apply to sales of grass sod by a person engaged in the
			 business of selling plants, seedlings, nursery stock, or floral products.
			 (Adopted October 19, 1976.) [Section
			 40-23-4(a)(31)]
(2) Sales of grass sod by the
			 person or corporation that planted, cultivated, and harvested the sod are
			 exempt from sales and use tax. Unlike the exemption outlined in paragraph (1)
			 above, this exemption is not lost to the producer who also sells plants,
			 seedlings, nursery stock, or floral products. [Section
			 40-23-4(a)(44)]
(3) A seller who claims the
			 exemption outlined in paragraph (2) must keep sufficient records to document
			 such claims; and, in the absence of sufficient documentation, shall be liable
			 for the sales or use tax due on all sales for which exemption claims cannot be
			 verified by the Revenue Department.
Author:
Dan DeVaughn
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-23-31,
				  40-23-83.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.30 - Grease Protective, When Exempt From Sales And Use Tax

Current through Register Vol. 42, No. 9, June 28, 2024
(Repealed).
Author:
Dan DeVaughn
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-23-4(32),
				  40-23-31,
				  40-23-83.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.31 - Herbicides (Repealed)

Current through Register Vol. 42, No. 9, June 28, 2024
Author:
Dan DeVaughn
Statutory Authority:
Code of Ala.
				  1975
,
				  40-23-4(a)(25),
				  40-23-62(25),
				  40-23-31,
				  40-23-83.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.32 - Historical Preservation Authorities

Current through Register Vol. 42, No. 9, June 28, 2024
(1) A historical preservation authority
			 organized pursuant to Article 5 of Chapter 10 of Title 41,
Code of
			 Ala. 1975
, as amended, is exempt from the payment of sales and use
			 tax on any tangible personal property purchased by the authority provided the
			 purchases are made in the name of the authority, the authority's credit is
			 obligated, and the purchases are paid for with funds belonging to the
			 authority. (Section
			 41-10-147,
Code of Ala. 1975
).
(2) The exemption in Section
			 41-10-147 does not apply to a contractor where the contractor has a construction contract
			 with a historical preservation authority to furnish all materials and labor for
			 use in the performance of the contract. The contractor is the consumer thereof
			 of all materials used in the performance of the construction contract which
			 becomes part of real property. (Sections
			 40-23-1(a)(10) and
			 40-23-60(5))
(3) Notwithstanding any of the
			 exemptions outlined above, an individual, partnership, or corporation organized
			 for profit that is or will be treated for federal income tax purposes as the
			 owner of property to which a historical preservation authority has title to, or
			 a possessory right in, is liable for sales or use taxes as if the for-profit
			 entity held title to the property unless the individual, partnership, or
			 corporation would be entitled to use the property pursuant to a lease or other
			 agreement entered into before May 21, 1992, or would be entitled to use the
			 property at some future time pursuant to an inducement agreement entered into
			 or adopted before May 21, 1992. For-profit entities, however, may qualify for
			 abatements of certain sales and use taxes pursuant to Chapter 9B of Title 40 of
			 the
Code of Ala. 1975
. Section
			 40-9B-7 only pertains to private users of private use property. Private user is defined
			 in
			 40-9B-3.
			 Therefore, Section
			 40-9B-7 does not change the tax exempt status of a non-profit entity for sales and use
			 tax purposes. (Section
			 40-9B-7,
Code of Ala. 1975
)
Authors:
Traci, Floyd, Deborah Lee, Ginger L.
				  Buchanan
Statutory Authority
:
Code of Ala.
				  1975
, §§
										40-2A-7(a)(5),
				  40-9B-7,
				  40-23-1(a)(10),
				  40-23-31,
				  40-23-60(5),
				  40-23-83,
				  41-10-147.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.33 - Industrial Development Board

Current through Register Vol. 42, No. 9, June 28, 2024
(1) An industrial development board created
			 by an incorporated municipality within the State of Alabama pursuant to Article
			 4 of Chapter 54 of Title 11,
Code of Ala. 1975
, as
			 amended, is exempt from sales and use tax on any tangible personal property
			 purchased by the board or its duly authorized agent, provided the purchases are
			 made in the name of the board, the board's credit is obligated and said
			 purchases are paid for by the board with funds belonging to the board. The term
			 "funds belonging to the board" shall normally be construed to mean those funds
			 not exceeding the amount of the long term revenue bonds and any temporary
			 borrowing evidenced by revenue bonds or notes maturing not later than 18 months
			 from date of issue. (Section
			 11-54-96,
Code of Ala. 1975
).
(2)
(a) The
			 exemption in Section
			 11-54-96 does not apply to a contractor where the contractor has a construction contract
			 with an industrial development board to furnish all materials and labor for use
			 in the performance of the contract. The contractor is the consumer thereof of
			 all the materials used in the performance of the construction contract which
			 becomes part of real property. A contractor may purchase items of machinery or
			 equipment not becoming part of the realty, tax exempt, where such items are
			 intended for resale to the board in the form of tangible personal property.
			 (Sections
			 40-23-1(a)(10) and
			 40-23-60(5),
Code of Ala. 1975
).
(b) The sale to, or the storage, use, or
			 consumption by, any contractor or subcontractor of any tangible personal
			 property to be incorporated into realty pursuant to a contract awarded after
			 October 1, 2000 but prior to July 1, 2004, with an industrial development board
			 organized pursuant to Article 4 of Chapter 54 of Title 11,
Code of
			 Ala. 1975
, is exempt from all state, county, and municipal sales
			 and use taxes provided the contractor or subcontractor has complied with Rule
			 810-6-3-.77 entitled Exemption of Certain Purchases by Contractors and Subcontractors in
			 conjunction with Construction Contracts with Certain Governmental Entities,
			 Public Corporations, and Educational Institutions. (Section
			 40-9-33,
Code of Ala. 1975
, repealed by Act 2004-638, effective
			 July 1, 2004)
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.34 - Insecticides And Fungicides

Current through Register Vol. 42, No. 9, June 28, 2024
(1)
			 The term "insecticides" means any substance or mixture of substances which are
			 used for the preventing, destroying, repelling, or mitigating of any insects.
			 The term "insect" means flies, mites, spiders, ticks, nematodes, and
			 destructive worms and grubs as well as those small invertebrate animals
			 strictly falling within the scientific class Insecta. (AGO Graddick, August 29,
			 1979) The term "fungicides" means any substance or mixture of substances which
			 are used for preventing, destroying, or mitigating any fungi.
(2) Sales of insecticides and fungicides when
			 used for agricultural purposes are exempt from sales and use tax.
(3) Sales of insecticides and fungicides when
			 used by persons properly permitted by the Department of Agriculture and
			 Industries or any applicable local or state governmental authority for
			 structural pest control work are exempt from sales and use tax. [§§
								40-23-4(a)(4) and
			 40-23-62(7)]
Author:
Dan DeVaughn
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-23-31,
				  40-23-83.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.35 - Interstate Shipments Subject To Sales Tax

Current through Register Vol. 42, No. 9, June 28, 2024
Sales tax is due by the seller in Alabama who accepts an order
				which he fills by having an out-of-state supplier ship the goods ordered,
				F.O.B. supplier's out-of-state shipping point, to the buyer in Alabama and the
				seller's supplier renders his invoice to the seller in Alabama and the seller
				in turn invoices his customer. (Graybar Electric v. Curry, 189 So. 186) Sales
				tax is due by a seller in Alabama who accepts an order which he fills by having
				the goods shipped to buyer, F.O.B. shipping point, his warehouse or stock of
				goods located outside Alabama. (Graybar Electric v. Curry, 189 So. 186)
Author:
Dan DeVaughn
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-24-4(17),
				  40-23-31,
				  40-23-83.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.35.01 - Interstate Commerce

Current through Register Vol. 42, No. 9, June 28, 2024
Where a resident contractor purchases materials from an Alabama
				dealer with the provision that the materials be delivered outside of Alabama by
				the seller for the contractor's use outside of Alabama, the sale is in
				interstate commerce and is exempt from the tax.
Author:
Dan DeVaughn
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-23-4(17),
				  40-23-31,
				  40-23-83.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.35.02 - Interstate Commerce, Sales In

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Sales are considered to be made outside
			 Alabama and cannot be taxed by the Alabama Sales Tax Law where:
(a) The seller is required by the sales
			 agreement to deliver the goods outside the state in the seller's equipment,
			 or
(b) The seller delivers the
			 goods to a common carrier or to the United States Postal Service for
			 transportation outside the state regardless of any F.O.B. point, or
(c) The seller is required by the sales
			 agreement to deliver the goods outside the state by the use of an independent
			 trucker hired by the seller.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.36 - Liquefied Petroleum Gas, Liquefied Natural Gas and Compressed Natural Gas

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Liquefied
			 petroleum gas, liquefied natural gas and compressed natural gas sold to be used
			 for agricultural purposes are exempt from sales tax.
(2) Liquefied petroleum gas, liquefied
			 natural gas and compressed natural gas sold to hatcheries for use as fuel for
			 heaters used to maintain a constant temperature in incubators qualify for the
			 exemption outlined in (1) above. This exemption applies to a hatchery whose
			 sole function is the hatching and raising of poultry even if the hatchery is
			 not located on a traditional farm.
(3) Liquefied petroleum gas, liquefied
			 natural gas and compressed natural gas sold for use in the commercial
			 production of greenhouse and nursery products qualify for the exemption
			 outlined in (1) above. (AGO Graddick February 6, 1979) Noncommercial
			 greenhouses or hothouses when not being operated as part of a farming operation
			 are not entitled to this exemption.
(4) The ginning of cotton occurs after
			 harvesting is completed and, since the agricultural aspect ends with
			 harvesting, cotton gins are nonagricultural processing operations and do not
			 qualify for the exemption outlined in (1) above. Sales of liquefied petroleum
			 gas, liquefied natural gas and compressed natural gas to cotton gins located on
			 traditional farms and operated by the farmer do not qualify for this
			 exemption.
(5) The drying of grain
			 by grain dealers not located on traditional farms occurs after the harvesting
			 is completed and, since the agricultural aspect ends with harvesting, such
			 operations are nonagricultural processing in nature and do not qualify for the
			 exemption outlined in (1) above.
Authors:
Dan DeVaughn, Michele Mayberry
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-2A-7(a)(5),
				  40-23-4(33),
				  40-23-31,
				  40-23-83.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.36.01 - Liquefied Petroleum Gas, Exempt From Sales Tax

Current through Register Vol. 42, No. 9, June 28, 2024
The sale of liquefied petroleum gas sold for use as motor fuel
				is exempt from sales tax provided the purchaser has secured the required permit
				which is issued by the Liquefied Petroleum Gas Board and displays the decal
				issued by the Board on the vehicle.
Author:
Dan DeVaughn
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-23-4(1),
				  40-23-31.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.37 - Livestock. (REPEALED)

Current through Register Vol. 42, No. 9, June 28, 2024
Author:
Dan DeVaughn
Statutory Authority
:
Code of Ala.
				  1975
, §§
										40-23-4(5),
				  40-23-31.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.37.01 - Meals Furnished Along with Rooms by Schools and Colleges (Repealed)

Current through Register Vol. 42, No. 9, June 28, 2024
Author:
Dan DeVaughn
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-23-2(1),
				  40-23-31.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.37.02 - Exemption From Lodgings Tax For Film Production Companies Approved By The Alabama Film Office (REPEALED)

Current through Register Vol. 42, No. 9, June 28, 2024
Author:
Ginger L. Buchanan
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-2A-7(a)(5),
				  40-26-1(b),
				  40-26-19.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.37.03 - Exemption For Certain Items Furnished To Medicaid Recipients

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Medicaid
			 Covered Products Paid by the State.
(a)
			 Eyeglasses, durable medical equipment, prosthetic and orthotic devices, and
			 medical supplies as defined and covered under the Medicare program furnished to
			 Medicaid recipients are exempt from sales, use, or rental and leasing tax when
			 billed directly to and paid for directly by Medicaid pursuant to §§
									40-23-4 and
			 40-23-62,
Code of Ala. 1975
.
(b) Payment for Medicare program furnished
			 items may be as the result of a contract between Medicaid and a manufacturer
			 who provides the item, bills Medicaid directly under the terms of the contract,
			 and receives payment directly from Medicaid.
(c) Payment may be as the result of contracts
			 with various suppliers, such as home health providers, who furnish the item,
			 bill Medicaid directly pursuant to the terms established by the Medicaid
			 program, and receive payment directly from Medicaid.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.38 - Medical Clinic Boards

Current through Register Vol. 42, No. 9, June 28, 2024
(1) A
			 medical clinic board created pursuant to Chapter 58 of Title 11,
Code of Ala. 1975
, is exempt from sales or use tax on
			 any tangible personal property purchased by the board or its duly authorized
			 agents, provided the purchases are made in the name of the board, the board's
			 credit is obligated, and the purchases are paid for by the board with funds
			 belonging to the board.
(2)
(a) The exemption referenced in paragraph (1)
			 above does not apply to a contractor where the contractor has a construction
			 contract with a medical clinic board to furnish all materials and labor for use
			 in the performance of the contract. The contractor is the consumer thereof of
			 all the materials used in the performance of the construction contract which
			 becomes part of real property. A contractor may purchase items of machinery or
			 equipment not becoming part of the realty, tax exempt, where such items are
			 intended for resale to the board in the form of tangible personal property.
			 (Sections
			 40-23-1(a)(10) and
			 40-23-60(5),
Code of Ala. 1975
).
(b) The sale to, or the storage, use, or
			 consumption by, any contractor or subcontractor of any tangible personal
			 property to be incorporated into realty pursuant to a contract with a medical
			 clinic board organized pursuant to Chapter 58 of Title 11,
Code of
			 Ala. 1975
, is exempt from all state, county, and municipal sales
			 and use taxes provided the contractor or subcontractor has complied with Rule
			 810-6-3-.77 entitled Exemption of Certain Purchases by Contractors and Subcontractors in
			 conjunction with Construction Contracts with Certain Governmental Entities,
			 Public Corporations, and Educational Institutions. (Section
			 40-9-33,
Code of Ala. 1975
, repealed by Act 2004-638, effective
			 July 1, 2004)
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.39 - Motor Freight Lines, Sales To

Current through Register Vol. 42, No. 9, June 28, 2024
Any sale of property to motor freight lines is subject to the
				sales tax where the property is delivered in Alabama by a seller doing business
				in Alabama. This is true even though the purchase order may have been given out
				of state to an out-of-state branch of the seller and even though payment is
				made out of state.
Author:
Christy Vandevender
Statutory Authority
:
Code of Ala.
				  1975
, §§
										40-23-31,
				  40-23-83.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.39.02 - Motor Freight Lines, Sales To. (REPEALED)

Current through Register Vol. 42, No. 9, June 28, 2024
Previous Rule
				  810-6-3-.39.02 was renumbered .39
				  per certification published November 30, 2022; effective January 14, 2023.
Author:
Dan DeVaughn
Statutory Authority
:
Code of Ala.
				  1975
, §§
										40-23-31,
				  40-23-83.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.40 - Municipal Housing Authority

Current through Register Vol. 42, No. 9, June 28, 2024
Sales of property to a municipal housing authority for use by
				such authority in construction, repair, or maintenance of its property are
				sales to an agency of a city and exempted from the sales tax.
Author:
Dan DeVaughn
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-23-4(11),
				  40-23-31,
				  40-23-83.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.41 - Exemption For Municipal Special Health Care Facilities

Current through Register Vol. 42, No. 9, June 28, 2024
(1) Chapter 62 of Title 11,
Code
			 of Ala. 1975
, as amended, provides for the incorporation and
			 operation of municipal special health care facility authorities.
(2) Section
			 11-62-18(d) exempts from sales and use tax any purchase of tangible personal property used
			 in the construction and equipment of a special health care facility if the
			 purchase is pursuant to any contractual arrangement between an authority and a
			 user for the acquisition of a facility for sale or lease to the user or for
			 financing the acquisition of a facility by loan from the authority. These
			 purchases are exempt regardless of whether they are made by the authority, the
			 user, or any contractor or agent of either.
(3) To qualify for the sales and use tax
			 exemption outlined in Section
			 11-62-18(d),
			 the property purchased must become a part of the facility or the equipment of
			 the facility or must constitute supplies or other items necessary for the
			 day-to-day operation of the facility. Purchases of tangible personal property
			 by an authority's or user's contractor or agent for use by the contractor or
			 agent, when such property does not become a part of the facility or the
			 equipment of the facility or does not constitute supplies or other items
			 necessary for the day-to-day operation of the facility, are subject to sales or
			 use tax. Examples of nonexempt items are diesel fuel and repair parts for
			 construction equipment, hand tools, and consumable supply items used by the
			 contractor or agent.
(4)
			 Notwithstanding the exemption outlined above, an individual, partnership, or
			 corporation organized for profit that is or will be treated for federal income
			 tax purposes as the owner of property to which a municipal special health care
			 facility authority has title to, or a possessory right in, is liable for sales
			 and use taxes as if the for-profit entity held title to the property unless the
			 individual, partnership, or corporation would be entitled to use the property
			 pursuant to a lease or other agreement entered into before May 21, 1992, or
			 would be entitled to use the property at some future time pursuant to an
			 inducement agreement entered into or adopted before May 21, 1992. For-profit
			 entities, however, may qualify for abatements of certain sales and use taxes
			 pursuant to Chapter 9B of Title 40 of the
Code of Alabama
			 1975
. Section
			 40-9B-7 only pertains to private users of private use property. Private user is defined
			 in
			 40-9B-3.
			 Therefore, Section
			 40-9B-7 does not change the tax exempt status of a non-profit entity for sales and use
			 tax purposes.
Authors:
Deborah Lee, Ginger L. Buchanan
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-2A-7(a)(5),
				  40-9B-7,
				  40-23-31,
				  11-62-18,
				  40-23-83.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.42 - National Farm Loan Associations

Current through Register Vol. 42, No. 9, June 28, 2024
National farm loan associations are instrumentalities of the
				United States and are not subject to sales or use taxes on the property
				purchased by them for use in carrying on any activity they are authorized to
				engage in by Federal Law.
Author:
Dan DeVaughn
Statutory Authority:
12
				  U.S.C.A. 931,
Code of Ala.
				  1975
, §§
										40-23-4(17),
				  40-23-31,
				  40-23-83.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.42.03 - Sales Of Certain Automotive Vehicles To Nonresidents For First Use And Registration Or Titling Outside Alabama

Current through Register Vol. 42, No. 9, June 28, 2024
(1)
(a)
			 Effective January 1, 2016, sales of automobiles, motorcycles, trucks, truck
			 trailers, or semitrailers that will be registered or titled outside Alabama,
			 that are exported or removed from Alabama within 72 hours by the purchaser or
			 purchaser's agent for first use outside Alabama are not subject to Alabama
			 sales tax provided the following conditions are met:
1. the state sales tax laws of the state in
			 which the purchaser will title or register the vehicle allows an Alabama
			 resident to purchase a motor vehicle for first titling and registering in
			 Alabama without the payment of tax to that state.
2. The exempt sale is documented on the
			 Automotive Vehicle Drive Out Certificate For Nonresidents.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.43 - Nurserymen - Sales Of Plants, Seedlings, Nursery Stock And Floral Products

Current through Register Vol. 42, No. 9, June 28, 2024
(1) The gross
			 proceeds of the sales of seedlings, plants, shoots and slips which are to be
			 used for planting vegetable gardens or truck farms and other agricultural
			 purposes are exempt from sales and use tax. [Section
			 40-23-4(a)(22)]
(2) Sales of nursery stock and
			 floral products by the nurseryman who planted, cultivated, and harvested said
			 items are exempt from sales and use tax. Sales of nursery stock and floral
			 products not planted, cultivated, or harvested by the seller are taxable.
			 [Sections
			 40-23-2(1),
			 40-23-4(a)(44),
			 and
			 40-23-61(a)]
(3) A nurseryman who claims the
			 exemption outlined in paragraph (2) must keep sufficient records to document
			 such claims; and, in the absence of sufficient documentation, shall be liable
			 for the sales or use tax due on all sales for which exemption claims cannot be
			 verified by the Revenue Department.
(4) The planting of trees, floral products,
			 and shrubbery or other nursery stock on the real property of a customer
			 pursuant to a contract to furnish such items and plant same does not constitute
			 a retail sale by the person performing the contract; instead, the person is
			 performing a contract for making additions, alterations, or improvements to
			 realty and is deemed to be the user or consumer of the items which are planted.
Accordingly, nurserymen who maintain an inventory of trees,
				floral products, and shrubbery or other nursery stock from which they make
				retail sales to customers and from which they also withdraw items for use in
				performing contracts for making additions, alterations, or improvements to
				realty shall purchase all such items tax-free and, in turn, remit sales tax
				collected from the customer on retail sales of items from inventory and compute
				and pay sales tax on items withdrawn from inventory for use or consumption in
				the performance of contracts. Nurserymen or landscapers who maintain no
				inventory and make no retail sales of trees, floral products, or shrubbery or
				other nursery stock shall remit the appropriate sales or use tax to the vendor
				at the time they purchase such items for use in performing contracts for making
				additions, alterations, or improvements to realty.
Purchases or withdrawals of trees, floral products, and
				shrubbery or other nursery stock which qualify for the exemptions outlined in
				paragraphs (1) and (2) above are exempt from sales and use tax. (Adopted March
				9, 1961, Amended January 20, 1966, readopted through APA effective October 1,
				1982, Amended May 22, 1993) [Sections
				40-23-1(a)(6),
				40-23-1(a)(8),
				40-23-1(a)(10),
				40-23-2(1),
				and
				40-23-61(a)]
Author:
Dan DeVaughn
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-23-31,
				  40-23-83.
Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.43.05 - Paper Manufacturers - Items Used Not Subject To Tax Or Exempt

Current through Register Vol. 42, No. 9, June 28, 2024
(Repealed 11/3/98)
Author:
Dan DeVaughn
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-23-31,
				  40-23-83.