Today is Wednesday, October 22, 2014
Important Notices!
*****  Administrative Law Division Move Effective October 1st, 2014  *****
The Taxpayer Fairness Act transfers Revenue's Administrative Law Division to the newly-created Alabama Tax Tribunal; their website is now http://taxtribunal.alabama.gov/.
 
Instructions For Filing Alabama Sales Tax Returns
General Information For Filing SalesTax Returns

All persons making retail sales of tangible personal property or operating places of amusement and entertainment must collect and remit Alabama sales tax to the Alabama Department of Revenue ("ADOR"). 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.

Items exempt from Alabama sales tax include prescription drugs; gasoline and motor oil (kerosene and fuel oil are taxable); seed for planting purposes: feed for livestock and poultry (not including prepared food for dogs and cats); fertilizer, insecticides, and fungicides when used for agricultural purposes; baby chicks and poults; livestock; and all tangible personal property sold to the U.S. government, the State of Alabama, counties of the State of Alabama, and all incorporated municipalities of the State of Alabama. Sales to churches are NOT exempt.

Instructions For Filing Alabama Sales Tax Returns
Line 1 Column A

GROSS SALES AND WITHDRAWALS - COLUMN A (1.5% Farm/Mfg. tax rate): Use Line 1 Column A to report total gross sales of machinery and replacement parts used in manufacturing, processing, compounding, quarrying, and mining of tangible personal property, and to report total gross sales of machinery and replacement parts, both new and used, used in planting, cultivating, and harvesting farm products. Use Line 1 Column A to also report cost of property purchased at wholesale withdrawn from stock for use or consumption, and collections during the month on credit sales previously claimed as deductions on Line 2 Column A.

Line 1 Column B
GROSS SALES AND WITHDRAWALS - COLUMN B (2% Auto tax rate): Use Line 1 Column B to report total gross sales of automotive vehicles, truck trailers, semi-trailers, and house trailers, both new and used. Use Line 1 Column B to also report cost of property purchased at wholesale withdrawn from stock for use or consumption, and collections during the month on credit sales previously claimed as deductions on Line 2 Column B.
Line 1 Column C
GROSS SALES - COLUMN C (3% Vending tax rate): Use Line 1 Column C to report total gross sales of food and food products for human consumption not including beverages other than coffee, milk, milk products, and substitutes therefore sold through vending machines.
Line 1 Column D
GROSS SALES, AMUSEMENTS, AND WITHDRAWALS - COLUMN D (4% General tax rate): Use Line 1 Column D to report total gross sales of all other tangible personal property not reported in Columns A, B or C, and to report gross receipts from places of amusement. Use Line 1 Column D to also report cost of property purchased at wholesale withdrawn from stock for use or consumption, and collections during the month on credit sales previously claimed as deductions on Line 2 Column D.
Line 2 Columns A, B, C & D
TOTAL DEDUCTIONS - COLUMNS A, B, C & D: Enter total deductions in the appropriate columns. NOTE: Deductions for each column should not exceed gross sales, amusments and withdrawals reported in the corresponding column of Line 1. For each column, if deductions exceed gross sales, amusements and withdrawals, deductions will be adjusted to the amount reported on Line 1, reflecting the measure of tax on Line 3 as zero. Valid excess deductions can be claimed on subsequent returns, or you can file an amended return or petition for a refund. For more information on filing an amended return or petition for refund, please call the Alabama Department of Revenue at 334-242-1490.
Line 3 Columns A, B, C & D
TOTAL AMOUNT REMAINING AS MEASURE OF TAX - COLUMNS A, B, C & D: Total of deductions in the corresponding Column of Line 2 will be subtracted from total gross sales, amusements, and withdrawals in the corresponding Column of Line 1 to obtain the measure of tax.
Line 4 Columns A, B, C & D
GROSS TAX - COLUMNS A, B, C & D: Gross tax for each column will be calculated based on amount from Line 3 x tax rate shown at column heading.
Line 5
AUTOMOTIVE WITHDRAWAL FEE (For automobile dealers only): Enter the number of automotive vehicles withdrawn for use as demonstrators. This number will be multiplied by the $5.00 withdrawal fee.
Line 6
TOTAL AMOUNT OF TAX: Total of Columns A through D of Line 4 (Gross Tax) plus Line 5 (Automotive Withdrawal Fee).
Line 7
DISCOUNT: A discount is allowed for timely payment of the tax shown due on Line 6 (Total Amount of Tax) and is calculated as follows: 5% on the 1st $100 of tax due, plus 2% of all tax over $100. Discount cannot exceed $400 per month.
Line 8
ESTIMATE PAID ON LAST MONTH'S RETURN: Estimated tax paid on previous month's return. If you are filing this return online for the first time, please enter the appropriate amount. For each subsequent return filed online, the online return will automatically enter on Line 8 the amount that you reported on Line 9 of the previous month's return. NOTE: If you are not required by the ADOR to pay sales tax on an estimated basis, Line 8 will state "N/A" and is not applicable to your return.
Line 9
ESTIMATE DUE FOR CURRENT MONTH: Enter estimated tax due for the current month. The estimate must equal the lesser of 2/3 of your actual liability for the same calendar month of the preceding year or 2/3 of the current month's estimated liability. The estimate cannot be less than zero. NOTE: If you are not required by the ADOR to pay sales tax on an estimated basis, Line 9 will state "N/A" and is not applicable to your return.
Line 10
TOTAL TAX DUE: For taxpayers required to pay sales tax on an estimated basis: Total tax due is the result of Line 6 (Total Amount of Tax) minus Lines 7 (Discount) and 8 (Estimate Paid on Last Month's Return), plus Line 9 (Estimate Due for Current Month). For taxpayers not required to pay sales tax on an estimated basis: Total tax due is the result of Line 6 (Total Amount of Tax) minus Line 7 (Discount).
Line 11
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 10 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 12
AMOUNTS OVERCOLLECTED: Use Line 12 to report amounts of tax overcollected pursuant to Section 40-23-26(d), Code of Alabama 1975.
Line 13
CREDIT CLAIMED: Use Line 13 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 sum of Line 10 (Total Tax Due) plus Lines 11 (Penalty & Interest) and 12 (Amounts Overcollected). Valid excess credit can be claimed on subsequent returns.
Line 14
TOTAL AMOUNT DUE: The total amount due is the result of Line 10 (Total Tax Due) plus Lines 11 (Penalty & Interest) and 12 (Amounts Overcollected) minus Line 13 (Credit Claimed).