The consumers use tax is imposed on tangible personal property brought into Alabama for storage, use, or consumption in the state when the seller did not collect seller’s use tax on the sale of the property.

Local Consumers Use Tax

Many cities and counties have use tax requirements patterned after the state law. Purchases from in-state vendors located outside these cities and counties for use within could be subject to their use tax. These rates vary. If a local city or county sales/use tax is paid under a requirement of law, no other additional local tax is due for the subsequent use in another city or county.

The local consumers use tax is due monthly, with returns and remittances to be filed on or before the 20th day of the month following the month in which the purchase was made. However, pursuant to Section 40-23-7, Code of Alabama 1975, you may request quarterly filing status if you have a tax liability of less than $2,400 for the preceding calendar year.

You may request biannual filing if you have a tax liability of less than $1,200 for the preceding calendar year.  You may also request biannual filing if you have purchases subject to consumer’s use tax during no more than two thirty consecutive day periods during the preceding calendar year.  You may request annual filing status if the tax liability for the entire preceding calendar year is less than $600.

You may also request annual filing if you have purchases subject to consumer’s use tax during no more than one thirty consecutive day period during the preceding calendar year.  Changes to the filing status can only be requested each year before February 20 in order to file quarterly, biannually or annually for that calendar year.   No discounts apply for timely filing. Note: If paying electronically, the EFT payment information must be transmitted by 4:00 p.m. (central time) on or before the due date, to be considered timely paid.