Sales and Use Taxes.

Ala. Code tit. 11, tit. 2, ch. 51, art. 3

in effect

Ala. Code § 11-51-200 Levy of Sales Tax Authorized; Exemption; Construction.

11-51-200. Levy of Sales Tax Authorized; Exemption; Construction. The governing body of any municipality within the State of Alabama may provide by ordinance for the levy and assessment of sales taxes, parallel to the state levy of sales taxes as levied by Sections 40-23-1, 40-23-2, 40-23-2.1, 40-23-4 to 40-23-31, inclusive, 40-23-36, 40-23-37, except for those provisions relating to the tax rate, and 40-23-38, except where inapplicable or where otherwise provided in this article; provided, that no municipality may levy any such tax against the Alcoholic Beverage Control Board of the State of Alabama in the sale of alcoholic beverages. The phrase “except where inapplicable,” contained herein and in Sections 11-51-201, 11-51-202, and 11-51-203, shall not be construed to permit a self-administered municipality to adopt or interpret an ordinance, resolution, policy, or practice that relies on that phrase, either directly or indirectly, in order to disavow, disregard, or attempt to disavow or disregard the mandate provided in this and the following sections for conformity with the corresponding state tax levy, unless the self-administered municipality can demonstrate that the ordinance, resolution, policy, or practice will simplify collection or administration of the tax or is being made for the convenience of the taxpayer. (Acts 1969, No. 917, p. 1653, §1; Act 98-192, p. 310, §3.)

Ala. Code § 11-51-201 Applicability of Provisions of State Sales Tax Law; Collection of Tax on Vehicles Not Sold through Licensed Alabama Dealer.

11-51-201. Applicability of Provisions of State Sales Tax Law; Collection of Tax on Vehicles Not Sold through Licensed Alabama Dealer. (a) All taxes levied or assessed by any municipality pursuant to the provisions of Section 11-51-200 shall be subject to all definitions, exceptions, exemptions, proceedings, requirements, provisions, rules and regulations promulgated under the Alabama Administrative Procedure Act, direct pay permit and drive-out certificate procedures, statutes of limitation, penalties, fines, punishments, and deductions for the corresponding state tax as are provided by Sections 40-2A-7, 40-23-1, 40-23-2, 40-23-2.1, 40-23-4 to 40-23-31, inclusive, 40-23-36, 40-23-37, except for those provisions relating to the tax rate, and 40-23-38, except where inapplicable or where otherwise provided in this article. (b) Notwithstanding the provisions of subsection (a), the tax provided in Section 11-51-200 on any automotive vehicle, truck trailer, trailer, semitrailer, or travel trailer required to be registered or licensed with the probate judge, which is not sold through a licensed Alabama dealer, shall be collected and fees paid in accordance with the provisions of Sections 40-23-104 and 40-23-107, respectively. (Acts 1969, No. 917, p. 1653, §2; Acts 1989, No. 89-691, p. 1358, §1; Acts 1992, No. 92-186, p. 349, §12; Act 98-192, p. 310, §3.)

Ala. Code § 11-51-202 Levy of Excise or Use Tax Authorized; Levy of Lodgings Tax Authorized.

11-51-202. Levy of Excise or Use Tax Authorized; Levy of Lodgings Tax Authorized. (a) The governing body of any municipality within the State of Alabama may provide by ordinance for the levy and assessment of an excise tax or use tax parallel to the state levy and assessment of excise or use taxes as levied by Article 2 of Chapter 23 of Title 40, except where inapplicable or where otherwise provided in this article. (b) The governing body of any municipality within the State of Alabama may provide by ordinance for the levy and assessment of a privilege or license tax in the nature of a lodgings tax, parallel to the state levy and assessment of the privilege or license tax as levied by Chapter 26 of Title 40, except where inapplicable or where otherwise provided by this article. (Acts 1969, No. 917, p. 1653, §3; Act 98-192, p. 310, §3.)

Ala. Code § 11-51-203 Applicability of Provisions of State Excise or Use Tax Law; Collection of Tax on Vehicles Sold by Dealers Not Licensed in Alabama or by Licensed Dealers Who Fail to Collect Sales Taxes; Fees.

11-51-203. Applicability of Provisions of State Excise or Use Tax Law; Collection of Tax on Vehicles Sold by Dealers Not Licensed in Alabama or by Licensed Dealers Who Fail to Collect Sales Taxes; Fees. (a) All taxes levied or assessed by any municipality pursuant to the provisions of Section 11-51-202 shall be subject to all definitions, exceptions, exemptions, proceedings, requirements, provisions, rules and regulations promulgated under the Alabama Administrative Procedure Act, direct pay permit and drive-out certificate procedures, statutes of limitation, penalties, fines, punishments, and deductions for the corresponding state tax as are provided by Section 40-2A-7 and Article 2 of Chapter 23 of Title 40, except where inapplicable or where otherwise provided in this article. (b) Notwithstanding the provisions of subsection (a), the tax provided in Section 11-51-202 on any automotive vehicle, truck trailer, trailer, semitrailer, or travel trailer required to be licensed with the probate judge, which were sold by dealers that are not licensed in Alabama, or were sold by licensed Alabama dealers who failed to collect municipal or county sales taxes at the point of sale, shall be collected and fees paid in accordance with the provisions of Sections 40-23-104 and 40-23-107, respectively. (c) For making the collection of county or municipal taxes levied under the authority of this article, the tax collector shall be entitled to a fee from the recipient county or municipality in an amount equal to five percent of the first ten thousand dollars ($10,000) of revenue collected for the recipient and three percent of all revenue collected over ten thousand dollars ($10,000) for the recipient under this article each month. Such fee shall be for the use of the tax collector, except as otherwise provided by law. The fees allowed herein shall be deducted from the tax collection of each recipient each month and the remainder of the collections shall be remitted to each recipient as provided by law; provided, however, the fee shall be disallowed with respect to any tax collected for the county or municipality unless the collections are remitted to the appropriate county or municipal tax recipient within the time allowed by law. In all counties where the tax collector is paid on a salary instead of a fee basis, all fees allowed under the terms of this section to be paid to the tax collector shall be paid, by the tax collector, into the county treasury or to the official performing the duties of county treasurer. (Acts 1969, No. 917, p. 1653, §4; Acts 1989, No. 89-691, p. 1358, §2; Act 98-192, p. 310, §3.)

Ala. Code § 11-51-204 Adoption, Etc., of Rules and Regulations as to Ascertainment, Etc., and Levy of Taxes.

11-51-204. Adoption, Etc., of Rules and Regulations as to Ascertainment, Etc., and Levy of Taxes. (a) The governing body of a municipality making or enforcing a levy or assessment of taxes under the provisions of this article shall from time to time adopt by ordinance such rules and regulations for making returns and for ascertainment, assessment, collection, and administration of any taxes levied under the provisions of this article as it may deem necessary to enforce its provisions and, upon request, shall furnish any taxpayer with a copy of those rules and regulations. (b) Except as provided in this article, any interpretations, rules, and regulations adopted or utilized by the governing body shall not be inconsistent with any rules and regulations which may be issued or promulgated by the Department of Revenue from time to time pursuant to the Alabama Administrative Procedure Act, for the corresponding state tax. (Acts 1969, No. 917, p. 1653, §5; Act 98-192, p. 310, §3.)

Ala. Code § 11-51-205 Establishment of Rate of Taxes; Levy and Assessment of Taxes in Lieu of License Tax Under Section 11-51-90; Effect of Pledge of Proceeds of License Tax Under Section 11-51-90 as to Levy and Assessment of Taxes Under Article.

11-51-205. Establishment of Rate of Taxes; Levy and Assessment of Taxes in Lieu of License Tax Under Section 11-51-90; Effect of Pledge of Proceeds of License Tax Under Section 11-51-90 as to Levy and Assessment of Taxes Under Article. (a) The governing body of a municipality levying or assessing taxes authorized by this article may provide by ordinance for the rate of the tax. (b) The governing body may provide in any ordinances levying or assessing the tax that the tax is levied and assessed in whole or in part in lieu of any privilege license tax based on gross receipts in the nature of a sales or use tax which at the time of the levy is otherwise provided for by ordinance pursuant to Section 11-51-90. This subsection shall not apply to municipal gasoline or motor fuel taxes, privilege or business license taxes levied on a business for the privilege of doing business within the municipality, occupational license taxes, tobacco taxes, or other similar taxes levied by a municipality pursuant to Section 11-51-90, except privilege or license taxes levied in the nature of a sales or use tax. (c) In all cases where the levy and assessment made pursuant to this article is required by ordinance, any previous pledge of the proceeds collected from a privilege license tax levied by ordinance pursuant to Section 11-51-90 shall have full force and effect as to any levy or assessment made pursuant to this article. (Acts 1969, No. 917, p. 1653, §6; Act 98-192, p. 310, §3.)

Ala. Code § 11-51-206 Levy of Tax Outside Corporate Limits.

11-51-206. Levy of Tax Outside Corporate Limits. The council or other governing body shall have the authority to levy and assess by ordinance within the police jurisdiction of any municipality or town all taxes authorized by this article; provided, that the levy and assessment shall not exceed one-half the amount levied and assessed for like businesses, sales or uses conducted within the corporate limits, fees and penalties excluded. All taxes adopted pursuant to this section shall be levied and assessed. No levy or assessment of a tax adopted by ordinance after September 1, 2015, shall take effect until a 30-day notice has been given of the adoption of the ordinance; provided, however, that no tax levy or assessment may be imposed under this section in an expanded police jurisdiction until the police jurisdiction expansion is effective under subsection (d) of Section 11-40-10. The notice given shall be the same as required for adoption of an ordinance in Section 11-45-8. Additionally, if available at no cost to the municipality, the 30-day notice shall be submitted to the Atlas Alabama state website or any successor state-operated website providing information to businesses. Each municipality shall prepare an annual report which shall include an accounting of all revenues collected in the expanded police jurisdiction after September 1, 2015, and provide a list of the services provided by the municipality and a list of providers within the police jurisdiction. A copy of the annual report, which shall be completed within 90 days of the close of the fiscal year, shall be forwarded to the Office of Examiners of Public Accounts and shall be made available to the public. (Acts 1969, No. 917, p. 1653, §7; Act 2015-361, §1.)

Ala. Code § 11-51-207 Collection of Taxes by Department of Revenue – Generally; Municipal Rental Tax Levy.

11-51-207. Collection of Taxes by Department of Revenue – Generally; Municipal Rental Tax Levy. (a) The governing body of a municipality may pass an ordinance or resolution requiring the Department of Revenue to administer and collect any taxes levied and assessed under the provisions of this article, or any general, special, or local law relating to the levy or administration of a municipal sales and use, rental, or lodgings tax. In all cases where the governing body of a municipality provides by ordinance or resolution for the administration and collection of any taxes levied under the provisions of this article, or any general, special, or local law relating to the levy or administration of a municipal sales and use, rental, or lodgings tax by the Department of Revenue, administration and collections shall be made under the same provisions and procedures provided for by Sections 11-51-180 to 11-51-185, inclusive. (b) Any municipal rental tax levy administered and collected by the Department of Revenue pursuant to Section 11-51-207(a) or Section 11-51-208 shall parallel the state levy of rental tax, except for the rate of the tax, as levied by Sections 40-12-220 to 40-12-224, inclusive, and shall be subject to all definitions, exceptions, exemptions, proceedings, requirements, provisions, rules, regulations, statutes of limitation, penalties, fines, punishments, and deductions as are provided by Section 40-2A-7 and Sections 40-12-220 to 40-12-224, inclusive. (Acts 1969, No. 917, p. 1653, §8; Act 98–192, p. 310, §3.)

Ala. Code § 11-51-208 Collection of Taxes by Department of Revenue - Reports; Costs; Enabling Act; Rules and Regulations; Assessment, Rates of Interest.

11-51-208. Collection of Taxes by Department of Revenue - Reports; Costs; Enabling Act; Rules and Regulations; Assessment, Rates of Interest. (a) Municipalities may, upon request of the municipal governing body, engage the Department of Revenue to collect and administer their municipal sales, use, rental, and lodgings tax. Subject to subsections (c) and (d), the Department of Revenue shall collect and administer the municipal sales, use, rental, and lodgings tax on behalf of the requesting municipality. The department shall prepare and distribute reports, forms, and other information as may be necessary to provide for the collection and administration of any municipal tax it collects and administers and, on request, shall make all reports available for inspection by the governing body of the municipality. In collecting and administering a municipal sales, use, rental, or lodgings tax, the department shall have all the authority and duties as it has in connection with the collection and administration of the corresponding state tax including, without limitation, the provisions of Chapters 2A, 12, 23, and 26 of Title 40. (b)(1) The Commissioner of Revenue shall deposit into the State Treasury all municipal taxes collected and, on a bi-weekly basis, shall certify to the Comptroller the amount of taxes collected for the approximate two-week period immediately preceding the certification and the amount, less the department’s actual cost of collection and administration, to be distributed to each municipality, which shall be paid to the treasurer or other custodian of funds of the municipality within three days after certification thereof. (2) The department shall charge each municipality the actual cost to the department for collecting and administering its tax. Notwithstanding the preceding sentence, the charge shall not exceed two percent of the amount collected for each municipality. At least once each month, the Comptroller shall issue a warrant to the department for the collection and administration charges due as determined by the Commissioner of Revenue. Payment shall be from funds collected under this section and shall be the actual cost of collection and administration, not to exceed two percent of the amount collected for each municipality. Notwithstanding any other provision of law, the department shall not charge a fee to the municipality, city, or town for the cost of filing, payment processing, and remittance services relating to any tax authorized to be filed under the ONE SPOT system of the department. References in this subsection to filing, payment processing, and remittance services shall mean and refer only to the ONE SPOT system to file and pay taxes authorized to be filed thereunder, and shall not include the collection and administration of local taxes as defined in Section 11-3-11.3(i). (3) Within 60 days after the end of each fiscal year, the department, in cooperation with the office of the Examiner of Public Accounts, shall recompute its actual costs for collection and administration of municipal taxes for the preceding fiscal year. Any collection and administration over-charge shall be redistributed to the municipalities for which the department collects and administers local taxes on a pro rata basis of each municipality’s receipts. No undercharge shall be recovered, either directly or indirectly, from any municipality. (c) Except where the department is collecting on July 1, 1998, any municipality which has a tax levy that will be collected and administered by the department pursuant to the provisions of this section shall forward a certified copy of the enabling act, ordinance, or resolution to the department at least 60 days prior to the first day of the first month on which the department is to begin collecting and administering the tax. (d) A new levy, or a levy changed by an amendment of a heretofore adopted levy, which will be collected and administered under this section shall not be subject to collection and administration by the department until the first day of the month next following the expiration of 60 days after receipt by the department of a certified copy of the enabling act, ordinance, or resolution with any amendments thereto. (e) Subject to the provisions of this section, the department shall from time to time issue rules for making returns and for ascertainment, assessment, collection, and administration of taxes subject to the provisions of this section as it may deem necessary to enforce its provisions and shall furnish any county or municipal governing body with a copy of those rules within 15 days of final adoption. Upon request, the department shall furnish any taxpayer with a copy of those rules. (f) Any self-administered municipal governing body, as defined in Section 40-2A-3(21), may elect, by the adoption of an ordinance or resolution, to assess interest on any tax delinquency. Any such assessment of interest shall be consistent with the provisions of Section 40-23-2.1. Any self-administered municipal governing body may also elect, by the adoption of an ordinance or resolution, to pay interest on any refund of tax erroneously paid. In the event that the governing body elects to assess interest on any tax delinquency, the governing body must also elect to pay interest, at the same rate charged by the municipality on tax delinquencies, on any refund of tax erroneously paid. The applicable interest rate to be charged by or due from the municipality shall be determined pursuant to Section 40-1-44. References in this subsection to “erroneously paid” taxes on which interest shall be due to the taxpayer shall only mean and refer to taxes erroneously paid to the self-administered municipality or its agent as a result of any error, omission, or inaccurate advice by or on behalf of the self-administered municipality, including in connection with a prior examination of its books and records by the self-administered municipality or its agent. (g) The applicable interest rate to be assessed on any tax delinquency or paid on any refund of erroneously paid taxes with respect to all municipal sales, use, rental, and lodgings tax levies collected and administered by the department shall be determined in accordance with Section 40-1-44. (h) For the purpose of this section, the terms collection and administration shall have the same meaning as in Section 11-3-11.3(i). (Act 98-192, p. 310, §5; Act 2017-415, §1; Act 2018-150, §1.)

Ala. Code § 11-51-209 Gross Receipts Tax.

11-51-209. Gross Receipts Tax. The governing body of a county or municipality that levied or administered a gross receipts tax in the nature of a sales tax, as defined in Section 40-2A-3(8), on February 25, 1997, may continue to do so after July 1, 1998. However, no other governing body of a county or municipality may levy or administer a gross receipts tax in the nature of a sales tax. This section shall not apply to county or municipal gasoline or motor fuel taxes, privilege or business license taxes levied on a business for the privilege of doing business within the county or municipality, occupational license taxes, tobacco taxes, or other similar taxes levied by a county or municipality pursuant to Section 11-51-90 or local laws, except privilege or license taxes levied in the nature of a sales tax. (Act 98-192, p. 310, §6.)

Ala. Code § 11-51-210 Standard Singular and Multiple Jurisdictional Tax Forms.

11-51-210. Standard Singular and Multiple Jurisdictional Tax Forms. (a) By December 31, 1998, the Department of Revenue shall develop and promulgate in the form of a proposed agency rule a standard multi-jurisdictional tax form and a singular jurisdictional tax form for the reporting and payment of municipal and county sales, use, rental, and lodgings taxes for those municipalities and counties for which the department serves as the collecting agent from time to time. (b) By December 31, 1998, a committee consisting of three representatives appointed by the Alabama League of Municipalities (ALM), who shall be municipal employees, officials, or attorneys, and three representatives appointed by the Association of County Commissions of Alabama (ACCA), who shall be county employees, officials, or attorneys, shall develop a standard multiple jurisdictional tax form and a singular jurisdictional tax form for the reporting and payment of all county and municipal sales, use, rental, and lodgings taxes for all counties and municipalities, except municipalities and counties that levy a gross receipts tax in the nature of a sales tax, as defined in Section 40-2A-3(8), that elects to be self-administered, as defined in Section 40-2A-3(21), from time to time. The committee shall also establish procedures for issuance of an amended form to take into account any new levies or changes in the tax rate or the law. Once the form and procedures are developed by the committee, they shall be distributed for comment to all counties and municipalities, the Business Council of Alabama, the Alabama Retail Association, the Alabama Chapter of the National Federation of Independent Business, and the Department of Revenue. Comments shall be returned to the committee within 45 days. Following the close of the comment period, the committee shall adopt a standard form and the procedures for issuance of an amended form. The form and procedure shall thereafter be distributed to self-administered counties and municipalities with instructions that the standard form shall be used by each self-administered county and municipality. (c) On and after the first day of the third month following the adoption of the standard tax forms prescribed by subsection (a) and subsection (b), all municipalities and counties administered by the department, and all self-administered counties and municipalities, respectively, shall accept the applicable form without material variation. Subsequent changes to the form prescribed by subsection (b) shall be effected in compliance with the procedures developed by the committee. Any change in the tax rate shall take effect without regard to the form in use. (d) Other than a self-administered county or municipality that levies a gross receipts tax in the nature of a sales tax, as defined in Section 40-2A-3(8), any county or municipality levying or administering any one or more sales, use, rental, or lodgings taxes shall accept, for reporting and payment of taxes due that county or municipality, bulk submissions of reports and, under regulations to be promulgated by the self-administered county or municipality affected, payments owed to such county or municipality made on behalf of a taxpayer by its properly authorized representative where such submissions are made using the appropriate form developed under this section. Any such bulk submissions or reports and payments shall include the municipality’s or county’s assigned identification number for each such taxpayer and vendee for each tax paid and contain sufficiently detailed information by which each taxpayer and each vendee can be identified such that a determination can be made as to the amount and method of assessment of tax against such taxpayer and vendee for the applicable county or municipality. The acceptance by a county or municipality of such bulk submissions shall not relieve the taxpayer on whose behalf such submissions were made from liability for any sales, use, rental, or lodgings tax arising from an error or omission made by the taxpayer’s representative. Any self-administered county or municipality accepting such bulk submission may require that the submission be signed by the taxpayer or its properly authorized representative. (e) By June 30, 1998, every county and municipality levying or administering a sales, use, rental, lodgings, tobacco, gasoline, or ad valorem tax as of June 1, 1998, shall submit to the department a list of the taxes then levied or administered by that county or municipality and the current rates thereof. Thereafter, every county and municipality levying or administering a new sales, use, rental, lodgings, tobacco, gasoline, or ad valorem tax or amending an existing sales, use, rental, lodgings, tobacco, gasoline, or ad valorem tax levy shall submit to the department written notification of the new tax levy or the amendment of an existing tax levy, in a manner as prescribed by the department, at least 60 days prior to the effective date of the tax or amendment. The department shall send return confirmation of the notification of the tax levy or amendment of an existing tax levy to the county or municipality no later than the first day of the second month following receipt of proper notification by the county or municipality to the department. The effective date of the tax levy or amendment of an existing tax levy shall be the first day of the third month following the department’s receipt of proper notification as required herein. However, failure to notify the department, as required by this subsection, shall not invalidate the levy of the tax but shall relieve the taxpayer of liability for having charged and collected an incorrect rate as provided herein. The department shall compile this information into a publication which shall be published on a monthly basis to each municipal and county governing authority, private auditing firm, as defined in Section 40-2A-3(17), and to others who have so requested the publication. This publication shall provide a then current listing of each county and municipality levying or administering a sales, use, rental, lodgings, tobacco, gasoline, or ad valorem tax and the current rate thereof. Beginning March 1, 2019, any taxpayer collecting sales, use, rental, or lodgings tax in compliance with the tax rates published by the department as required by this subsection shall be relieved from liability to Alabama and its local jurisdictions for having charged and collected an insufficient rate based upon the rate published by the department. If the rate published by the department and relied upon by the taxpayer is less than the actual rate provided on the return confirmation provided to the county or municipality as required by this subsection, the department shall be responsible to the local jurisdiction for reimbursement of the amount due as a result of the difference between the published rate and the actual rate as provided to the department. The liability is only applicable for a period not to exceed one year from the date the incorrect rate was published by the department. Notwithstanding the preceding requirement, if a county or municipality fails to properly notify the department of a new levy or amendment to an existing levy, the department shall be relieved from liability to the local jurisdiction for a taxpayer having charged and collected an insufficient amount of tax based upon the rates published by the department. Proper notification of a new levy or amendment to an existing levy shall be in a manner as prescribed by the department. However, no penalties or interest for late payment or underpayment of taxes shall begin to accrue until the proper tax rate or levy has been on file at the department for at least 60 days, unless the taxpayer had actual knowledge of the correct tax rate or levy as of an earlier date. (f) For the purpose of this section, the terms collection and administration shall be defined as provided for in Section 11-3-11.3(i). (Act 98-192, p. 310, §7; Act 2001-306, p. 376, §1; Act 2001-309, p. 385, §1; Act 2018-150, §1.)

Ala. Code § 11-51-210.1 Notice of Tax Rates; Correction of Erroneously Published Rates; Liability.

11-51-210.1. Notice of Tax Rates; Correction of Erroneously Published Rates; Liability. No later than October 1, 2018, the Department of Revenue shall send notice to every county or municipality levying a sales, use, rental, or lodgings tax regarding the rates of such taxes according to the records held by the department. Each county and municipality shall notify the department of an existing erroneous rate published by the department no later than December 1, 2018. The county or municipality notifying the department of such rate error shall send written confirmation, on county or municipal letterhead, to the department listing the erroneous rate published by the department and the corrected rate along with supporting ordinances, resolutions, or documentation. If the county or municipality fails to respond to the department regarding an erroneously published rate pursuant to this section, the taxpayer shall be relieved from liability to the local jurisdiction for having charged and collected an insufficient amount of tax on or after March 1, 2019, based upon the rates published by the department on March 1, 2019. Should the county or municipality properly respond and notify the department regarding the erroneously published rate, and the rate published by the department and relied upon by the taxpayer is in conflict with the response provided by the county or municipality as required by this section, the department shall be responsible to the local jurisdiction for reimbursement of the amount due as a result of the difference between the published rate and the actual rate as provided to the department. Such liability shall only be applicable for a period, not to exceed one year, from the date the incorrect rate was published by the department. (Act 2018-150, §2.)

Ala. Code § 11-51-211 Quarterly Sales and Use Tax Returns.

11-51-211. Quarterly Sales and Use Tax Returns. (a)(1) With respect to those municipalities and counties for which the department serves as the collecting sales tax agent from time to time, when the total state sales tax for which any person is liable under Chapter 23 of Title 40 averages less than two hundred dollars ($200) per month during the preceding calendar year, a quarterly sales tax return and remittance in lieu of monthly returns may be made to the department. If a quarterly filing election has been made by the taxpayer, then the return and remittance shall be made to the department on or before the 20th day of the month next succeeding the end of the quarter for which the tax is due. The election to file quarterly shall be made in writing no later than February 20 of each year and shall be filed with the department. Notwithstanding the above, no state-administered county or municipal sales tax return shall be due until January 20 of each year unless the total state sales tax for which any person is liable during the preceding calendar year exceeds ten dollars ($10). The department is hereby authorized to promulgate rules and regulations to implement the provisions of this subdivision. (2) With respect to those municipalities and counties for which the department serves as the collecting use tax agent from time to time, when (i) the total state sales tax for which any person is liable under Chapter 23 of Title 40 averages less than two hundred dollars ($200) per month during the preceding calendar year and (ii) the total state use tax for which that person is liable under Chapter 23 of Title 40 averages less than two hundred dollars ($200) per month during the preceding calendar year, a quarterly use tax return and remittance in lieu of monthly returns may be made to the department. If a quarterly filing election has been made by the taxpayer, then the return and remittance shall be made to the department on or before the 20th day of the month next succeeding the end of the quarter for which the tax is due. The election to file quarterly shall be made in writing no later than February 20 of each year and shall be filed with the department. Notwithstanding the above, no state-administered county or municipal use tax return shall be due until January 20 of each year unless the total state sales tax for which any person is liable during the preceding calendar year exceeds ten dollars ($10). The department is hereby authorized to promulgate rules and regulations to implement the provisions of this subdivision. (b)(1) With respect to self-administered counties and municipalities, as defined in Section 40-2A-3(20), when the total state sales tax for which any person is liable under Chapter 23 of Title 40 averages less than two hundred dollars ($200) per month during the preceding calendar year, a quarterly sales tax return and remittance in lieu of monthly returns may be made to each appropriate self-administered county or municipality. If a quarterly filing election has been made by the taxpayer, then the returns and remittance shall be made to each appropriate self-administered county or municipality on or before the 20th day of the month next succeeding the end of the quarter for which the tax is due. The election to file quarterly shall be made in writing no later than February 20 of each year and shall be filed with each appropriate self-administered county or municipality. Notwithstanding the above, no sales tax return shall be due to a self-administered county or municipality until January 20 of each year unless the total state sales tax for which any person is liable under Chapter 23 of Title 40 during the preceding calendar year exceeds ten dollars ($10). A self-administered county or municipality is hereby authorized to promulgate rules and regulations to implement the provisions of this subdivision. Further, any self-administered county or municipality may, in its discretion, permit a taxpayer to file its sales tax returns on a basis less frequently than quarterly. (2) With respect to self-administered counties and municipalities, when the total state sales tax for which any business or person domiciled in Alabama is liable under Chapter 23 of Title 40, averages less than two hundred dollars ($200) per month during the preceding calendar year, a quarterly use tax return and remittance in lieu of monthly returns may be made to each appropriate self-administered county or municipality. If a quarterly filing election has been made by the taxpayer, then the return and remittance shall be made to the appropriate self-administered county or municipality on or before the 20th day of the month next succeeding the end of the quarter for which the tax is due. The election to file quarterly shall be made in writing no later than February 20 of each year and shall be filed with each appropriate self-administered county or municipality. Notwithstanding the above, no use tax return shall be due to a self-administered county or municipality until January 20 of each year unless the total state sales tax for which any person is liable under Chapter 23 of Title 40 during the preceding calendar year exceeds ten dollars ($10). A self-administered county or municipality is hereby authorized to promulgate rules and regulations to implement the provisions of this subdivision. Further, any self-administered county or municipality may, in its discretion, permit a taxpayer to file its use tax returns on a basis less frequently than quarterly. (Act 98-192, p. 310, §8.)

Source: Alabama Legislature (alison.legislature.state.al.us)URL: https://alison.legislature.state.al.us/code-of-alabamaFetched: 10/20/2026