Today is Tuesday, September 2, 2014
Important Notices!
There are currently no notices available.
 
Instructions For Filing Alabama Consumers Use Tax Returns
General Information For Filing Consumers Use Tax Returns

Tangible personal property brought into Alabama for storage, use, or other consumption on which tax has not been collected by a seller who is registered with the Department of Revenue, is subject to the tax imposed by the Use Tax Law. The information required shall be filed on Consumers Use Tax Return, form 2610.

The return and remittance are due on or before the twentieth day of the month following the month during which tax is accrued. NOTE: EFT payment information must be transmitted by 4:00 p.m. CST (Central Standard Time) on or before the due date, to be considered timely paid.

Returns filed after the due date are subject to a "failure to timely file" penalty equal to the greater of 10% of the tax required to be paid on the return or $50.00. Tax payments received after the due date are subject to a "failure to timely pay" penalty equal to 10% of the delinquent tax. If the tax is not timely paid, interest is also due at the same rate established by the Secretary of the Treasury under authority of 26 USC 6621.

Instructions For Filing Consumers Use Tax Returns

The rate of tax is 2% of the net difference on any automotive vehicle, truck trailer, semi-trailer or house trailer not required to be registered for highway use (see Section 40-23-100 through 110 which covers occasional sales and use tax on vehicles registered for highway use). A rate of 1 1/2% on any machine used in mining, quarrying, compounding, processing, or manufacturing tangible personal property. Also, a rate of 1 1/2% of the net difference on any machine, machinery or equipment which is used in planting, cultivating, and harvesting farm products. All other tangible personal property is taxed at a general rate of 4%.

Line 1 Column A
TOTAL PURCHASE PRICE OF ITEMS BOUGHT OUTSIDE ALABAMA - COLUMN A (1.5 % Farm/Mfg. tax rate): Use Line 1 Column A to report total purchases of machinery and replacement parts used in manufacturing, processing, compounding, quarrying, and mining of tangible personal property, and to report total purchases of machinery and replacement parts, both new and used, used in planting, cultivating, and harvesting farm products.
Line 1 Column B
TOTAL PURCHASE PRICE OF ITEMS BOUGHT OUTSIDE ALABAMA - COLUMN B (2% Auto tax rate): Use Line 1 Column B to report purchases of automotive vehicles (not covered by Casual Sales & Use Tax Law), truck trailers, semi-trailers, and house trailers, both new and used, purchased for storage, use, or consumption in Alabama on which seller has not collected Alabama Sellers Use Tax.
Line 1 Column C
TOTAL PURCHASE PRICE OF ITEMS BOUGHT OUTSIDE ALABAMA - COLUMN C (4% General tax rate): Use Line 1 Column C to report purchases of all other tangible personal property not reported on Line 1 Columns A or B.
Line 2 Columns A, B & C
TOTAL DEDUCTIONS - COLUMNS A, B & C: Enter total deductions in the appropriate columns. NOTE: Deductions for each column should not exceed total purchases reported in the corresponding column of Line 1. For each column, if deductions exceed total purchases, deductions will be adjusted to the amount of total purchases, reflecting the measure of tax on Line 3 as zero.
Line 3 Columns A, B & C
TOTAL AMOUNT REMAINING AS MEASURE OF TAX - COLUMNS A, B & C: Total of deductions in the corresponding column of Line 2 will be subtracted from total purchases in the corresponding column of Line 1 to obtain the measure of tax.
Line 4 Column A, B & C
GROSS TAX - COLUMNS A, B & C: Gross tax for each column will be calculated based on amount from Line 3 x tax rate shown at column heading.
Line 5
TOTAL AMOUNT OF TAX: Total of Columns A, B & C of Line 4 (Gross Tax).
Line 6
LESS TAX PAID ON PURCHASE TO SELLER IN ANOTHER STATE: Enter the amount of tax paid on purchases to a reseller in a reciprocating state. (See information below.)
Line 7
PLUS PENALTY AND INTEREST, IF DUE: Returns filed after the due date are subject to a "failure to timely file" penalty equal to the greater of 10% of the tax required to be paid on Line 5 of the return or $50.00. Tax payments received after the due date are subject to a "failure to timely pay" penalty equal to 10% of the delinquent tax. If the tax is not timely paid, interest is also due at the same rate established by the Secretary of the Treasury under authority of 26 USC 6621.  (Click here to determine current interest rates.) NOTE: If your return or payment is not timely filed or paid, you will be billed the appropriate penalties and interest by the ADOR. 
Line 8
LESS CREDIT CLAIMED: Use Line 8 to claim an amount of credit for a prior overpayment. The credit claimed will be applied to reduce the tax liability shown on the return. NOTE: Any credit for prior overpayment must be approved in advance by the ADOR. Credit claimed should not exceed the result of Line 5 (Total Amount of Tax) and Line 6 (Tax paid on purchase to seller in another State). Valid excess credit can be claimed on subsequent returns.
Line 9
TOTAL AMOUNT DUE: The total amount due is the result of Line 5 (Total Amount of Tax) less Line 6 (Tax paid on purchase to seller in another State) plus Line 7 (Penalty & Interest) less Line 8 (Credit Claimed).

Credit For Taxes Paid to Other States

Code of Alabama 1975, Section 40-27-1, Article V (1) "Each purchaser liable for a use tax on tangible personal property shall be entitled to full credit for the combined amount or amounts of legally imposed sales or use taxes paid by him with respect to the same property to another state and any subdivision thereof. The credit shall be applied first against the amount of any use tax due the state, and any unused portion of the credit shall be thus applied against the amount of any use tax due a subdivision."

Only a maximum of 1 1/2, 2, or 4 percent depending on the rate due may be claimed against the purchase on the state return. Any amount above this paid as tax in another state may be applied to the local taxes due. Each transaction or purchase must stand alone and the taxes paid to another state would not be cumulative. Overages of taxes paid on a transaction cannot be used against taxes due from a second transaction.

Example:  
Purchase (No Tax Paid) $4,000.00
Purchase (7% Tax Paid to Other State) $6,000.00
Total $10,000.00
Total Purchases $10,000.00
Tax Rate 4%
Total Tax Due $400.00
Allowable Credit for Tax Paid to Another State ($6,000.00 x 4% = $240.00) $240.00
Balance Due Alabama $160.00