Taxes on Sale, Storage, and Use of Automotive Vehicles, Motorboats, Truck Trailers, Etc.

Ala. Code tit. 40, ch. 23, art. 3

in effect

Ala. Code § 40-23-100 Definitions.

40-23-100. Definitions. As used in this article, unless the context otherwise requires, the following terms shall have the following meanings: (1) JUDGE OF PROBATE. The judge of probate or other licensing authority in a county. (2) LICENSING OFFICIAL. The county official required by law to issue licenses for any automotive vehicle, motorboat, truck trailer, trailer, semitrailer, or travel trailer taxed under this article. (3) MOTOR BOAT. A boat with one or more built-in motors or a boat with an outboard type motor or motors attached thereto by attachments intended to be permanent rather than readily removable and which motor or motors are controlled with remote controls built on or into the hull of the boat. (Acts 1981, No. 81-665, p. 1086, §1; Acts 1994, No. 94-622, p. 1162, §1.)

Ala. Code § 40-23-101 Sales Tax Levied on Automotive Vehicles, Motorboats, Truck Trailers, Manufactured Homes, Etc.; Additional Receipts and Taxes Collected.

40-23-101. Sales Tax Levied on Automotive Vehicles, Motorboats, Truck Trailers, Manufactured Homes, Etc.; Additional Receipts and Taxes Collected. (a) There is hereby levied and shall be collected as herein provided a sales tax upon every person, firm, or corporation purchasing within this state, other than at wholesale, any automotive vehicle, motorboat, truck trailer, trailer, semitrailer, or travel trailer required to be registered or licensed with the judge of probate of any county in this state from any person, firm or corporation that is not a licensed dealer engaged in selling automotive vehicles, motorboats, truck trailers, trailers, semitrailers, or travel trailers in an amount equal to two percent of the purchase price. (b) Commencing October 1, 1989, there is hereby levied and shall be collected, as provided for under the provisions of subsection (e) of Section 40-23-104, a sales tax in the amount equal to two percent of the purchase price on the sale of any manufactured home as defined in subsection (n) of Section 40-12-255, purchased other than at wholesale in this state from any person, firm, or corporation which is not a licensed dealer engaged in selling manufactured homes. (c) In addition to the two percent state sales tax, there shall also be collected any applicable municipal gross receipts or sales taxes and county sales taxes on the vehicles listed in subsection (a) of this section authorized by general or local law for the local taxing jurisdiction in which the purchaser resides or, if a business, the business location. Penalties for falsifying or misrepresenting the correct taxing jurisdictions shall be as provided in subsection (b) of Section 40-29-115. (Acts 1981, No. 81-665, p. 1086, §2; Acts 1988, 1st Ex. Sess., No. 88-867, p. 265, §4; Acts 1989, No. 89-691, p. 1358, §4; Acts 1989, No. 89-752, p. 1526, §1; Acts 1994, No. 94-622, p. 1162, §2.)

Ala. Code § 40-23-102 Excise Tax Levied on Storage or Use of Automotive Vehicles, Motorboats, Truck Trailers, Manufactured Homes, Etc.; Additional Receipts and Taxes Collected.

40-23-102. Excise Tax Levied on Storage or Use of Automotive Vehicles, Motorboats, Truck Trailers, Manufactured Homes, Etc.; Additional Receipts and Taxes Collected. (a) There is hereby levied and shall be collected as herein provided, in lieu of the excise tax levied by subsection (c) of Section 40-23-61, an excise or use tax upon every person, firm, or corporation purchasing outside the state, other than at wholesale, any automotive vehicle, motorboat, truck trailer, trailers, semitrailer, or travel trailer, required to be registered or licensed with the judge of probate of any county in this state for use, storage, or other consumption within this state a tax in an amount equal to two percent of the purchase price. (b) Commencing October 1, 1989, there is hereby levied and shall be collected, as provided for under the provisions of subsection (e) of Section 40-23-104, an excise or use tax in the amount equal to two percent of the purchase price on the storage, use, or other consumption in the state of any manufactured home as defined in subsection (n) of Section 40-12-255 purchased other than at wholesale outside the state on or after October 1, 1989, for storage, use, or other consumption in this state. (c) In addition to the two percent state use tax, there shall also be collected any applicable municipal and county use tax authorized by general or local law for the local taxing jurisdiction in which the purchaser resides, or, if a business, the business location on any automotive vehicle, motorboat, truck trailer, trailer, semitrailer, or travel trailer purchased from dealers doing business outside the State of Alabama and from licensed Alabama dealers where municipal and county sales taxes were not collected at the time of purchase. Penalties for falsifying or misrepresenting the correct taxing jurisdiction shall be as provided in subsection (b) of Section 40-29-115. (Acts 1981, No. 81-665, p. 1086, §3; Acts 1988, 1st Ex. Sess., No. 88-867, p. 265, §5; Acts 1989, No. 89-691, p. 1358, §5; Acts 1989, No. 89-752, p. 1526, §2; Acts 1994, No. 94-622, p. 1162, §3.)

Ala. Code § 40-23-103 Sales Tax Levied on Sale Price Less Credit for Trade-In.

40-23-103. Sales Tax Levied on Sale Price Less Credit for Trade-In. Where any used automotive vehicle, motorboat, truck trailer, semitrailer, or house trailer is taken in trade or in a series of trades as a credit or part payment on the sale of a new or used automotive vehicle, motorboat, truck trailer, semitrailer, or house trailer, the tax levied in this article shall be paid on the net difference, that is, the price of the new or used vehicle, motorboat, or trailer sold less the credit for the used vehicle, motorboat, or trailer taken in trade. (Acts 1981, No. 81-665, p. 1086, §4; Acts 1994, No. 94-622, p. 1162, §4.)

Ala. Code § 40-23-104 Collection of Taxes Before Registration or Licensing; Proof of Purchase Price; Proof of Payment of Tax.

40-23-104. Collection of Taxes Before Registration or Licensing; Proof of Purchase Price; Proof of Payment of Tax. (a) The licensing official shall collect all of the following: (1) The taxes levied by this article. (2) The municipal gross receipts or sales taxes and county sales taxes authorized by general or local law on sales made by a person or firm other than a licensed dealer. (3) The municipal and county use taxes authorized by general or local law on sales made by dealers doing business outside the State of Alabama and on sales made by licensed Alabama dealers where municipal and county sales taxes were not collected at the time of purchase. (4) The state use tax on any such automotive vehicle, motorboat, truck trailer, trailer, semitrailer, or travel trailer required to be registered or licensed by the judge of probate. (b) The licensing official shall require, as proof of the purchase price of the automotive vehicle, motorboat, truck trailer, trailer, semitrailer, or travel trailer to be taxed, when purchased from a licensed dealer in this state, documentation of the price upon which any state, county, or municipal sales tax was paid and which reflects the amount of such state, county, or municipal sales tax paid and any other evidence of the purchase price as shall be prescribed by the Department of Revenue. All licensed dealers in this state shall furnish to the purchaser of any of the vehicles documentation showing the amount and rate of sales or gross receipts tax collected at the time of purchase for the state and for the municipality and county where the sale was made. (c) The licensing official shall require, as proof of the purchase price of any other automotive vehicle, motorboat, truck trailer, trailer, semitrailer, or travel trailer to be taxed, the presentment of a sworn report by the purchaser reflecting such purchase price on a form to be provided by the Department of Revenue accompanied by a properly executed bill of sale or other satisfactory evidence prescribed by the Department of Revenue. (d) In lieu of the requirements contained in subsection (c) of this section, the purchaser may stipulate to the licensing official that the purchase price of the automotive vehicle, motorboat, truck trailer, trailer, semitrailer, or travel trailer to be taxed is equivalent to a standard value for the year, make, and model established by the Department of Revenue for the taxable item. The purchase price so stipulated shall be conclusively presumed to be the purchase price of the item for all purposes under this article. (e) Before the registration of or licensing of any such automotive vehicle, motorboat, truck trailer, trailer, semitrailer, or travel trailer, the licensing official shall require proof of payment of the tax levied under this article deemed necessary and proper. (f) Before the decal, which is provided for by Section 40-7-1, is issued to evidence payment of the ad valorem tax due on a manufactured home in this state, and before any homestead exemption is granted for a manufactured home, payment of the tax levied either under Section 40-23-101(b) or Section 40-23-102(b) shall be made to the licensing official of the county in which the manufactured home will be initially sited as evidenced by a properly executed bill of sale. If, however, the sales or use tax specified in either Sections 40-23-101(b) or 40-23-102(b) has been paid prior to the due date of the ad valorem tax on the manufactured home, then proof of payment for the sales or use taxes will be evidenced by a receipt and shall be deemed acceptable by the licensing official. (g) Any law to the contrary notwithstanding, the licensing official shall remit all county and municipal sales, gross receipts, and use taxes collected directly to the appropriate county or municipal tax recipient as otherwise provided by law, within 20 days following the last day of the month in which those taxes were collected. In addition to all other penalties, the penalty for failure to comply with this section shall be as provided in Chapter 29, Article 6. (Acts 1981, No. 81-665, p. 1086, §5; Acts 1989, No. 89-691, p. 1358, §6; Acts 1989, No. 89-752, p. 1526, §3; Acts 1994, No. 94-622, p. 1162, §5.)

Ala. Code § 40-23-105 Applicability of Certain Title 40 Provisions.

40-23-105. Applicability of Certain Title 40 Provisions. Except as herein otherwise provided, the tax herein shall be subject to all definitions, exceptions, exemptions, proceedings, requirements, rules, regulations, provisions, penalties, fines, punishments, deductions, and discounts in accordance with the provisions of Sections 40-23-1 through 40-23-36 and the assessment and refund procedures set out in Chapter 2A of this title. (Acts 1981, No. 81-665, p. 1086, §6; Acts 1992, No. 92-186, p. 349, §68.)

Ala. Code § 40-23-106 Reciprocity.

40-23-106. Reciprocity. If a sales or use tax equal to or in excess of the amount of the tax imposed by this article is paid to another state under a requirement of the law of that state, the automotive vehicle, motorboat, truck trailer, semitrailer, or house trailer which is the subject of the tax when it is imported for use, storage, or consumption in this state shall not be subject to the use tax imposed by this article. If the amount of the tax paid to another state is less than that imposed by this article, then the difference shall be paid. However, no credit shall be allowed for taxes paid on any automotive vehicles, motorboats, truck trailers, semitrailers, or house trailers in any other state which does not extend credit for taxes paid on similar property in Alabama. The licensing official shall require proof of payment of tax in another state deemed necessary and proper. (Acts 1981, No. 81-665, p. 1086, §7; Acts 1994, No. 94-622, p. 1162, §6.)

Ala. Code § 40-23-107 Fees.

40-23-107. Fees. For making the collection of taxes levied under authority of this article, the licensing official shall be entitled to a fee in an amount equal to five percent of all revenue collected under this article each month. The fee shall be for the use of the licensing official. The fee shall be deducted from the tax collections each month and the remainder of the collections shall be remitted to the Department of Revenue. Notwithstanding the foregoing, the fee shall be disallowed unless the collections are remitted to the Department of Revenue within the time allowed by law. In all counties where the licensing official is paid on a salary instead of a fee basis, all fees allowed under the terms of this section to be paid to the licensing official shall be paid, by the licensing official, into the county treasury, or to the official performing the duties of county treasurer. (Acts 1981, No. 81-665, p. 1086, §8; Acts 1994, No. 94-622, p. 1162, §7.)

Ala. Code § 40-23-108 Disposition of Funds.

40-23-108. Disposition of Funds. The licensing official shall, after the deduction of the fee as provided in Section 40-23-107, remit the revenue collected hereunder to the Department of Revenue for deposit as follows: Of the total two cents ($.02) tax on each dollar of sale, 58% of the total tax generated shall be deposited to the credit of the Education Trust Fund; and 42% of the total tax generated shall be deposited to the credit of the State General Fund. Provided, however, of the total of those funds derived from the state sales and use taxes collected on motorboats, 50 percent shall be paid to the State General Fund and 50 percent to the Education Trust Fund. (Acts 1981, No. 81-665, p. 1086, §9; Acts 1988, 1st Ex. Sess., No. 88-867, p. 265, §6; Acts 1994, No. 94-622, p. 1162, §8; Act 99-650, 2nd Sp. Sess., p. 96, §1.)

Ala. Code § 40-23-110 Penalty for Failure to Pay Tax.

40-23-110. Penalty for Failure to Pay Tax. Any person failing to pay the tax levied under the provisions of this article shall be guilty of a Class C misdemeanor and upon conviction thereof, be punished as prescribed by law for such offense. (Acts 1981, No. 81-665, p. 1086, §11.)

Ala. Code § 40-23-111 Authority to Adopt and Enforce Rules and Regulations.

40-23-111. Authority to Adopt and Enforce Rules and Regulations. The Department of Revenue is authorized to adopt, promulgate, and enforce reasonable rules and regulations relating to the administration and enforcement of Article 3, commencing with Section 40-23-100, Chapter 23, Title 40, not in conflict with the specific provisions hereof. (Acts 1994, No. 94-622, p. 1162, §10.)

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