Alabama sales tax is fixed at a general rate of 4% on all tangible property purchase. But other additions are made in local taxes and the rate of sales tax in Alabama can amount to 10% in certain cities of Alabama like Montgomery. In the state of Alabama, food is not exempted from sales tax. The collecting authority of sales tax in Alabama is the Sales and Use Tax section. Sales tax of Alabama is imposed on sixteen different categories.
Find below Alabama sales tax rates:
General Sales Tax Rate - 4%
Rate on Automotive - 2%
Rate on Manufacturing Machinery - 1.5%
Rate on Farm Machinery - 1.5%
Amusement tax rate - 4%
Vending rate - 3%
According to the Act No. 2006-552 brought into effect from 1st October, 2006, payments of tax amounts in excess of $750 are to be made electronically through an Electronic Funds Transfer method. From October 2003, business taxpayers file their tax returns through the Alabama Paperless Filing & Payment System.
Sales tax Alabama is imposed on the retail sale of personal tangible property in Alabama by the business concerns that are placed in Alabama. The seller collects the sales tax from their customers and then they deposit that tax to the state directly. Sales tax is imposed on both wholesale and retail sales.
The sales tax in Alabama is collected on a monthly basis. The sales tax returns need to be filed before the 20th of every month. The state sales taxes are also payable on a quarterly basis and a calendar year basis. Discount facilities are also available in case of timely payment of sales tax. In addition to the state sales tax, various rates of local sales tax are also imposed in the state of Alabama. The different county and city sales taxes in Alabama are in excess of two hundred.