Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-5 - USE TAX LAW; CONTRACTORS GROSS RECEIPTS TAX; LODGINGS TAX; RENTAL TAX; UTILITY TAXES; MISCELLANEOUS RULES › Section 810-6-5-.04.01 - Reciprocity For Municipal And County Sales, Gross Receipts, Use And Rental Taxes

Current through Register Vol. 42, No. 9, June 28, 2024
(1) The
			 definition of the term "gross receipts tax in the nature of a sales tax" as
			 used in this rule shall be the same as the definition contained in Section
			 40-2A-3(8),
Code of Ala. 1975
.
(2) If a sales tax, gross receipts tax in the
			 nature of a sales tax, use tax, or rental tax levied by or on behalf of an
			 Alabama municipality is paid under a requirement of law, the property which is
			 the subject of the tax, when imported for use, storage, or consumption into
			 another Alabama municipality, is not subject to the sales tax, use tax, or
			 rental tax, regardless of rate, which is required by the second municipality
			 under any municipal ordinance or any act of the Legislature. (Section
			 40-23-2.1(a),
Code of Ala. 1975
)
(3) If a sales tax, gross receipts tax in the
			 nature of a sales tax, use tax, or rental tax levied by or on behalf of an
			 Alabama county is paid under a requirement of law, the property which is the
			 subject of the tax, when imported for use, storage, or consumption into another
			 Alabama county, is not subject to the sales tax, use tax, or rental tax,
			 regardless of rate, which is required by the second county under any county
			 ordinance, resolution, or any act of the Legislature. (Section
			 40-23-2.1(b))
(4) Reciprocity for local sales
			 tax, gross receipts tax in the nature of a sales tax, use tax, and rental tax
			 applies on a "city to city" and "county to county" basis. Payment of a
			 municipal sales, gross receipts, use or rental tax will not preclude payment of
			 a county sales, gross receipts, use, or rental tax nor will payment of a county
			 sales, gross receipts, use, or rental tax preclude payment of a municipal
			 sales, gross receipts, use, or rental tax. (Section 40-23-2-1(c))
(5) The reciprocity outlined in (2), (3), and
			 (4) above applies to all municipalities and counties of the State of
			 Alabama.
(6) When a county or
			 municipal sales tax, gross receipts tax in the nature of a sales tax, use tax,
			 or rental tax is paid to a county or municipality in good faith based on a
			 reasonable interpretation of the ordinance, resolution, or act levying the tax
			 but not under a requirement of law; any refund of the erroneously paid taxes to
			 the taxpayer by the improper locality and any collection of the taxes due from
			 the taxpayer by the proper locality shall be made in accordance with the
			 provisions of Section
			 40-23-2.1(c) and, unless otherwise provided in Section
			 40-23-2.1(c),
			 the provisions of Chapter 2A of Title 40. Petitions for refund of any portion
			 of county or municipal tax erroneously paid to an improper county or
			 municipality which is in excess of the correct amount of tax due the proper
			 county or municipality shall be filed in accordance with the provisions
			 contained in Section
			 40-2A-7(c) including, but not limited to, the requirement for joint petitions for refund
			 when the tax erroneously paid by the seller was collected from the purchaser.
			 (Section
			 40-23-2.1(c))
Author:
Dan DeVaughn, Sales and Use Tax
				Division
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-23-31,
				  40-23-83,
				  Act No. 87-579.