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  • What do I need to do in response to the Medical Cannabis Privilege Tax Delinquent Notice?

What do I need to do in response to the Medical Cannabis Privilege Tax Delinquent Notice?

If you have received a Medical Cannabis Privilege tax delinquency notice from the Alabama Department of Revenue, and you have not filed the required return or made the required payment, do so now to avoid further interest and penalties. Medical Cannabis Privilege Tax Returns must be filed in My Alabama Taxes. See “How do I register for My Alabama Taxes?” if you do not have a My Alabama Taxes account. Instructions can be obtained by clicking on the ALDOR Form page and selecting Medical Cannabis Privilege Tax from the “Categories/Tax” filter. If you are uncertain if a return was required or filed, please forward a copy of the delinquency notice to your tax professional.

A credit card transaction fee is a charge added to the regular price of an item by a retailer when the purchaser pays for the item using a credit card. Other names for this fee include swipe fee, credit card surcharge, processing fee, service charge, or convenience fee.

These fees are subject to sales and use tax and should be included in the seller’s gross sales on retail transactions when calculating tax due. Example: A sale of tangible personal property totals $100. The customer pays with a credit card and is charged a $3 credit card transaction fee. The total price of $103, including the credit card transaction fee, is subject to sales and use taxes.

A credit card fee, even if separately stated, is part of the retailer’s cost of doing business, and the entire consideration for the sale of tangible personal property is subject to sales and use taxes.

If a transaction consists of only non-taxable goods or services, the credit card transaction fee is not subject to sales and use taxes. Example: A customer is charged $50 for a haircut. The customer pays with a credit card and is charged a $3 credit card transaction fee. Since the haircut is not subject to sales and use taxes, the corresponding credit card transaction fee is not subject to sales and use taxes.

    • You must train a minimum of 30 hours each year through either of these methods:
      • Participate in organized training in a class approved for use in fire service or emergency medical services in providing service as a firefighter.
      • Participate in organized training in a class approved for use in rescue squad and emergency medical services in providing service as a rescue squad member.
    • The Volunteer Emergency Responders Tax Credit is a tax credit available to a qualified volunteer firefighter or a qualified rescue squad member. To be qualified, you must meet certain criteria as a volunteer firefighter or an emergency medical technician or paramedic and obtain certain approved training each year.
    • Individuals may be required to substantiate that eligibility requirements have been met for each year in which the credit is claimed.
    • You should report the approved credit amount on the Schedule OC when you file your Alabama tax return.
    • ALDOR will review and verify credit requests in the order that they are received. We will send an email and/or My Alabama Taxes message to the email address/account used to submit the credit request when this process is complete.
      • If the credit amount requested is reduced or if the credit request is disallowed, we will provide additional information  through My Alabama Taxes.
    • If approved, you should claim the amount approved on your Alabama tax return.
    • You can obtain a copy of the certificate at Forms.