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-.197 - Sales Taxes Paid By Certain Camps

Current through Register Vol. 42, No. 9, June 28, 2024
(1) The term "camp" as used in this rule
			 shall mean a facility providing lodgings, meals, and educational and
			 recreational opportunities primarily for the benefit of children, students, and
			 nonprofit organizations, and not members of the general public. The term "camp"
			 as used in this rule shall not include any facility that does not qualify for
			 the lodgings tax exemptions contained in Sections
			 40-26-1(b)(ii) or
			 40-26-1(b)(iii),
Code of Ala. 1975
.
(2) The term "department" as used in this
			 rule shall mean the Alabama Department of Revenue.
(3) The definitions of terms contained in
			 Section
			 40-26-1(c),
			 are incorporated into this rule by reference.
(4) The furnishing of food, food items,
			 T-shirts, caps, gym bags, and similar items by a camp, without a separate
			 charge therefor, to children or students, members of a child or student's
			 family, members and guests of nonprofit organizations, or other persons in
			 conjunction with lodgings, meals, and educational or recreational opportunities
			 provided for a lump sum payment shall not be considered a sale at retail. The
			 furnishing of these items and activities is considered to be rendering a
			 service rather than making a retail sale and the camp is considered to be the
			 consumer of the items furnished. Unless the camp provides a valid sales tax
			 account number or certificate of exemption, the vendor selling these items to
			 the camp shall collect state and applicable county and municipal sales or use
			 taxes from the camp at the time of purchase and remit the taxes collected to
			 the department.
(5) Sales of food,
			 food items, T-shirts, caps, gym bags, and similar items by a camp that
			 purchases these items and regularly displays and offers them for sale through a
			 gift shop, snack shop, or similar place to children or students, members of a
			 child or student's family, members and guests of nonprofit organizations, or
			 other persons for a separate charge that is in addition to any lump sum charge
			 for lodgings, meals, and educational or recreational opportunities shall be
			 considered sales at retail and are subject to state and applicable county and
			 municipal sales tax. A camp making retail sales of this nature shall obtain a
			 sales tax license and comply with Sales and Use Tax Rule
			 810-6-1-.56 entitled Dual Business. (Sections
			 40-23-1(a)(9),
			 40-23-1(a)(10),
			 and
			 40-23-6,
Code of Ala. 1975
).
(6) A camp that does not maintain a stock or
			 inventory of food, food items, T-shirts, caps, gym bags, and similar items from
			 which it regularly makes retail sales as outlined in paragraph (5) and makes
			 only isolated or accommodation sales of these items which it acquired for use
			 in conjunction with providing services as outlined in paragraph (4) is not
			 engaged in making retail sales and does not qualify as a dual business. Where
			 only isolated or accommodation sales of this nature are made, the camp shall
			 pay state and applicable county and municipal sales or use tax to its vendors
			 on all of its purchases of the items and is not required to obtain a sales tax
			 license.
(7) The sales tax on
			 amusements levied in Section
			 40-23-2(2),
			 does not apply to a camp's receipts from providing lodgings, meals, and
			 educational or recreational opportunities for a lump sum payment.
Author:
Dan DeVaughn
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-2A-7(a)(5),
				  40-23-1(a)(9),
				  40-23-1(a)(10),
				  40-23-2(2),
				  40-23-6,
				  40-23-31,
				  40-23-83.