Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-1 - GROSS PROCEEDS OF SALES; GROSS RECEIPTS; WHOLESALE SALES, SALES AT WHOLESALE; RETAIL SALES, SALES AT RETAIL; AUTOMOTIVE VEHICLES › Section 810-6-1-.106 - Monuments, Memorial Stones, Grave Markers, And Other Decorative Or Commemorative Objects

Current through Register Vol. 42, No. 9, June 28, 2024
(1)
			 Monuments, memorial stones, grave markers, or other similar decorative or
			 commemorative objects, collectively referred to in this rule as monuments, are
			 building materials.
Sales of monuments to the person who installs or erects them to
				realty are retail sales. The person who installs or erects monuments to realty
				is a contractor.
(2) A
			 monument dealer or builder who contracts to furnish and install or erect
			 monuments is a contractor and shall pay sales or use tax to the supplier on the
			 cost of the monuments purchased for use in performing contracts or on the cost
			 of the materials which become a component part of monuments which the
			 dealer/builder manufacturers for use in performing contracts. In the event the
			 supplier is an unregistered out-of-state supplier, the monument dealer/builder
			 shall compute and pay consumers use tax on the monuments or monument materials
			 purchased from the unregistered supplier. (Sections
			 40-23-1(a)(10) and
			 40-23-60(5).
(3) A monument dealer or builder who sells
			 monuments uninstalled is a retailer and shall apply for and obtain a sales tax
			 license or, if an out-of-state business with nexus in Alabama, register to
			 collect sellers use tax. The licensed or registered monument retailer shall
			 purchase at wholesale, tax-free all monuments purchased for resale and all
			 materials which become a component of monuments which the retailer manufactures
			 for sale. The monument retailer shall collect and remit sales or sellers use
			 tax on the retail selling price of all monuments sold without any deduction for
			 labor used in manufacturing, cutting, engraving, or marking the monuments.
			 (§§
								40-23-1(a)(6),
			 (a)(8), (a)(10),
			 40-23-26,
			 40-23-60(5)(10),
			 and
			 40-23-67).
(4) A monument dealer or builder
			 in Alabama who is in the dual business of both selling monuments uninstalled
			 and contracting to furnish and install or erect monuments shall obtain a sales
			 tax license. The dual business monuments dealer/builder shall purchase at
			 wholesale, tax-free all monuments and all materials becoming a component of
			 monuments which the dealer/builder materials. The dual business monument
			 dealer/builder shall collect sales tax from the customer and remit the tax to
			 the Department of Revenue on all retail sales of uninstalled monuments and
			 shall compute and pay sales tax on all monuments or components of monuments
			 withdrawn from inventory for use in performing contracts to furnish and install
			 or erect monuments. The measure of tax to be collected on sales of uninstalled
			 monuments is the selling price of the monument sold without any deduction for
			 labor used in manufacturing, cutting, engraving, or marking the monument. The
			 measure of tax on monuments or monument materials withdrawn from inventory for
			 use in performing contracts is the cost of these items to the dealer/builder
			 who withdrawals them. (§§
								40-23-1(a)(8) and
			 40-23-1(a)(10)).
Author:
Patricia A. Estes
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-2A-7 -(a)(5),
				  40-23-1(a)(6)(8)(10),
				  40-23-26,
				  40-23-60(5)(10),
				  40-23-67,
				  40-23-31,
				  40-23-83.