Alabama Administrative Code › Title 810 - ALABAMA DEPARTMENT OF REVENUE › Chapter 810-6-3 - EXEMPTIONS FROM SALES AND USE TAX › Section 810-6-3-.42.02 - Nonresidents, Sales To

Current through Register Vol. 42, No. 9, June 28, 2024
(1)
			 Other than the exceptions noted in (2) and (3) below, sales to nonresidents are
			 sales at retail subject to the tax even though such purchasers claim that the
			 property purchased is for use outside of Alabama, except where the seller
			 delivers the property outside Alabama or to the U.S. Postal Service or to a
			 common carrier for transportation outside Alabama. (Sections
			 40-23-1(a)(5),
			 40-23-4(a)(17) and
			 40-23-62(2))
(2) Sales of automobiles,
			 motorcycles, trucks, truck trailers, or semitrailers that (1) will be
			 registered or titled outside Alabama and (ii) are exported or removed from
			 Alabama within 72 hours by the purchaser or the purchaser's agent for first use
			 outside Alabama are not subject to Alabama sales tax when the 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 when the sales tax laws of
			 the state. To be exempt from Alabama sales tax, the information relative to the
			 exempt sale must be documented on forms approved by the Revenue Department.
			 (See Sales and Use Tax Rule
			 810-6-3-.42.03 entitled Sales of Certain Automotive Vehicles to Nonresidents for First Use and
			 Registration or Titling Outside Alabama.) Sales of other vehicles such as
			 mobile homes, motor bikes, all terrain vehicles, motor homes, travel trailers,
			 and boats do not qualify for this export exemption provision and are subject to
			 Alabama sales tax unless the seller can provide factual evidence that the
			 vehicle was delivered outside Alabama or delivered to a common carrier for
			 transportation outside Alabama. (Section
			 40-23-2(4))
(3) The purchase of a new truck
			 with a gross weight not exceeding 8,000 pounds or a new passenger vehicle by a
			 nonresident of the United States is exempt from sales or use tax when (i) the
			 truck or passenger vehicle is manufactured in Alabama, (ii) the truck or
			 passenger vehicle is delivered to the purchaser in Alabama by the manufacturer
			 or an affiliated corporation, (iii) at the time of the purchase the purchaser
			 intends to export the truck or passenger vehicle to and permanently license the
			 truck or passenger vehicle in a foreign country within 90 days after the date
			 of delivery, and (iv) the purchaser obtains a temporary metal license plate and
			 a temporary registration certificate from the probate judge or license
			 commissioner of the county in which the manufacturer is located.
(4) Effective January 1, 2016, sales of
			 automobiles, motorcycles, trucks, truck trailers, or semitrailers that (i) will
			 be registered or titled outside Alabama and (ii) are exported or removed from
			 Alabama within 72 hours by the purchaser or the purchaser's agent for first use
			 outside Alabama are subject to the Alabama state sales tax rate of two percent
			 (2%) unless the 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. However, in no case shall the amount of Alabama state sales tax due on a
			 motor vehicle that will be registered or titled for use in another state exceed
			 the amount of sales tax that would otherwise have been due in the state where
			 the vehicle will be registered or titled for first use.
(a) The tax collected on sales outlined in
			 paragraph (4) above shall be Alabama sales tax and shall exclude county and
			 municipal sales tax.