Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-2 - TAXES LEVIED ON GROSS SALES AND GROSS RECEIPTS; APPLICABLE TAX RATES › Section 810-6-2-.46.01 - Marine Dealers, Sales By

Current through Register Vol. 42, No. 9, June 28, 2024
The proper rates of state sales tax to be paid on sales of
				boats, motors, trailers. and other items associated with the marine industry
				are as follows:
(a) Boat trailers sold
			 alone are taxable at 2 percent of the net difference paid.
(b) Boat motors sold alone are taxable at the
			 general rate of 4 percent of the total selling price.
(c) Nonautomotive boats sold alone are
			 taxable at the general rate of 4 percent of the total selling price.
(d) When a boat without a motor is sold with
			 a trailer, the total selling price of the boat is taxable at the general rate
			 and the trailer is taxable at the automotive rate on the net trade difference
			 (total selling price of the trailer less credit allowed for a qualifying
			 automotive unit traded-in) provided the board and trailer prices are separately
			 stated on the dealer's invoice. To qualify for the trade-in allowance, the unit
			 traded-in for the trailer must qualify as an automotive unit. If the boat and
			 trailer prices are not separately stated on the invoice, the total selling
			 price of the boat and trailer is taxable at the general rate with no deduction
			 allowed for a trade-in.
(e) Boat,
			 motor and trailer sold as a unit is taxable at 2 percent of the net difference
			 paid if it qualifies as an automotive vehicle.
(f) If a dealer removes a motor from a
			 customer's unit classified as an automotive vehicle, accepts it as part payment
			 of another motor, and installs the new motor, the tax is computed at 4 percent
			 of the net difference paid. A motor sold with a motor traded that is not part
			 of an automotive vehicle at the time of the sale is taxable at 4 percent of the
			 total selling price.
(g) Coast
			 Guard required equipment and accessories such as, but not limited to, life
			 jackets and fire extinguishers included in the price of boat, motor and
			 trailer, are taxable at 2 percent of the net difference paid. Skis, ropes,
			 etc., are taxable at the general rate of 4 percent.
(h) Depth finders, trolling motors, and other
			 permanently attached accessories sold with unit at time of original purchase
			 are taxable at 2 percent of the net difference paid provided the unit qualifies
			 as a motorboat with built-in motor, or boat with outboard type motor attached
			 thereto by attachments intended to be permanent rather than readily movable,
			 and which motor is controlled with remote controls built on or into the hull of
			 said boat.
(i) Boat, motor and
			 trailer sold by dealer for an individual is subject to the tax in the same
			 manner and at the same rate as a boat, motor and trailer owned and sold by the
			 dealer.
(j) Boat, motor and trailer
			 sold with trade-in allowed (Example: New unit $10.000.00, credit for unit
			 traded $5,000.00, net difference $5,000.00) would be taxable at 2 percent of
			 net difference paid provided both units qualify as an automotive vehicle as
			 outlined in (h).
(k) Sail boat sold
			 alone is taxable at 4 percent of total selling price.
(l) Sail boat sold with auxiliary motor
			 permanently attached so that it qualifies as an automotive vehicle as outlined
			 in (h) is taxable at 2 percent of the net difference paid.
(m) Aluminum fishing boat sold alone is
			 taxable at the general rate of 4 percent of total selling price. (§§
								40-23-2(1)(4))
Author:
Patricia A. Estes
Statutory Authority:
Code of Ala.
				  1975
, §§
										40-23-31,
				  40-23-83.