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Sellers Use Tax

Sellers use tax is imposed on the retail sale of tangible personal property sold in Alabama by businesses located outside of Alabama which have no inventory located in Alabama, but are making retail sales in Alabama via sales offices, agents, or by any significant recurring contact or “nexus” with Alabama.

The tax is due monthly, with returns and remittances to be filed on or before the 20th of the month for the previous month’s sales. However, a taxpayer may elect to file and pay state use tax quarterly when the total state use tax for which the taxpayer is liable averages less than $200 per month during the preceding calendar year. The election to file and pay quarterly shall be made in writing to the ADOR no later than February 20 of each year. Also, if a taxpayer’s total state use tax liability during the preceding calendar year is $10 or less, the taxpayer may file state use tax on a calendar year basis. No discounts apply for timely filing. The tax rates due are the same rates as for State sales tax. There may also be city and/or county sellers use tax due; these rates vary.

Note:  If paying via EFT, the EFT payment information must be transmitted by 4:00 p.m. (Central Standard Time) on or before the due date, to be considered timely paid.

 

The local sellers use tax is due monthly, with returns and remittances to be filed on or before the 20th day of the month for the previous month’s sales.

However, a taxpayer may elect to file and pay state-administered local use tax quarterly when the total state sales tax for which the taxpayer is liable averages less than $200 per month during the preceding calendar year and the total state use tax for which the taxpayer is liable averages less than $200 per month during the preceding calendar year. The election to file and pay quarterly shall be made in writing to the ADOR no later than February 20 of each year. Also, if a taxpayer’s total state sales tax liability during the preceding calendar year is $10 or less, the taxpayer may file local use tax on a calendar year basis. No discounts apply for timely filing.

Note:  If paying via EFT, the EFT payment information must be transmitted by 4:00 p.m. (Central Standard Time) on or before the due date, to be considered timely paid.