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Instructions For Filing Alabama Sellers Use Tax Returns
General Information For Filing Sellers Use Tax Returns

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 Sellers 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
GROSS SALES AND COLLECTIONS - 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 total collections made during the month on credit sales previously claimed as deductions on Line 2 Column A.
Line 1 Column B
GROSS SALES AND COLLECTIONS - COLUMN B (2% Auto tax rate): Use Line 1 Column B to report total gross sales of automotive vehicles (not covered by Casual Sales & Use Tax Law), truck trailers, semi-trailers, and house trailers, both new and used, sold for delivery in Alabama. Use Line 1 Column B to also report total collections made during the month on credit sales previously claimed as deductions on Line 2 Column B.
Line 1 Column C
GROSS SALES AND COLLECTIONS - COLUMN C (4% General tax rate): Use Line 1 Column C to report total gross sales of all other tangible personal property not reported on Line 1 Columns A or B. Use Line 1 Column C to also report total collections made during the month on credit sales previously claimed as deductions on Line 2 Column C.
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 gross sales and collections reported in the corresponding column of Line 1. For each column, if deductions exceed gross sales and collections, deductions will be adjusted to the amount of gross sales and collections, 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
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 gross sales and collections in the corresponding Column of Line 1 to obtain the measure of tax.
Line 4 Columns 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
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 7
PLUS AMOUNTS OVERCOLLECTED: Use Line 7 to report amounts of tax overcollected pursuant to Sections 40-23-61 & 63, Code of Alabama 1975.
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 sum of Lines 5 (Total Amount of Tax), 6 (Penalty & Interest) and 7 (Amounts Overcollected). Valid excess credit can be claimed on subsequent returns.
Line 9
TOTAL AMOUNT DUE: The total tax amount due is the result of Line 5 (Total Amount of Tax) plus Lines 6 (Penalty & Interest) and 7 (Amounts Overcollected) minus Line 8 (Credit Claimed).