U.S. flag An official website of the United States government.

Dot gov

The .gov means it's official.
Federal government websites always use a .gov or .mil domain. Before sharing sensitive information online, make sure you’re on a .gov or .mil site by inspecting your browser's address (or "location") bar.

SSL

This site is also protected by an SSL (Secure Sockets Layer) certificate that's been signed by the U.S. government. The https:// means all transmitted data is encrypted  — in other words, any information or browsing history that you provide is transmitted securely.

Proposed Rule Changes

Key:

  • Upcoming Rule Hearings: Awaiting Public Hearing
  • Rules Pending Agency Certification: Hearing Held; 90 days to Certification
  • Rules Pending Final Adoption: Awaiting Required 45 day Period for Legislative Oversight Review

Rulemaking Timeline Under Administrative Procedures Act Title 41 Chapter 22

  1. Proposed Rule Filed with LSA (3rd week of each month)
  2. Notice of Intended Action published in the Alabama Administrative Monthly §41-22-5(a)(1)
  3. Department holds Public Hearing 35 – 90 days from publication date §41-22-5(a)(1)
  4. Hearing Officer makes recommendation to Revenue Commissioner
  5. Final Approval from Revenue Commissioner
  6. Final Rule must be filed with LSA within 90 days of Public Hearing §41-22-6(b)
  7. A business impact statement included, if required §41-22-5.1(c)
  8. Rule becomes effective 45 days after the Certification of the Administrative Rule is published in the Administrative Monthly §41-22-6(c)

Upcoming Rule Hearings

All interested parties may present their views in writing to the Secretary of the Alabama Department of Revenue, Room 4131, Gordon Persons Building, 50 N Ripley Street, Montgomery, Alabama 36132 at any time during the thirty-five (35) day period following publication of the notice or by appearing at the hearing.

Generally, public hearings are held in the Gordon Persons Building, Room 1203, located at 50 North Ripley Street, Montgomery, Alabama 36132. There are two public entrances to the Gordon Persons Building, the Ripley/Pelham Entrance and the Monroe/Jackson Entrance. For Directions to Room 1203 from these entrances click here. **Revenue is monitoring developments pertaining to the Coronavirus (COVID-19) and is following guidance from federal and state officials. Out of an abundance of caution for your health and well-being, as well as our employees, all public hearings will be conducted via web-conference until further notice. To participate in an upcoming web-conference public hearing please contact the Tax Policy and Governmental Affairs Division at taxpolicy@revenue.alabama.gov or 334-242-1380 to obtain the appropriate sign-in information for a specific public hearing date. **

Rule Number Description Intended Action Substance of Proposed Action Date, Time; Location, Hearing to be Held

Rules Pending Agency Certification

Rule Number Description Intended Action Substance of Proposed Action Date, Time; Location, Hearing was Held
810-5-1-.230 License Plates for Truck Tractors Limited to Travel within 15 Miles of its Domiciled Corporate Limits Amended Pursuant to the Red Tape Reduction Act 2013-88, this rule has been reviewed and is being amended to remove unnecessary language and provide streamlined guidance on the Yard Truck restrictive license plate, previously known as a mule tag. A public hearing was held at 1:30 pm on Tuesday, May 10, 2022, via web-conference.
810-5-1-.243 Registering Trucks With Gross Weights Up To 12,000 Pounds New, Repealed Pursuant to the Red Tape Reduction Act 2013-88, this rule has been reviewed and is being repealed and replaced to remove outdated references to Act 2006-356, and streamline the format of the rule to provide clarified guidance on the registration of pick-up trucks for personal and agricultural use. A public hearing was held at 1:30 pm on Tuesday, May 10, 2022, via web-conference.
810-5-1-.245 Non-Residents Operating Non-Commercial Vehicles into Alabama and Non-Residents Relocating to Alabama Amended Pursuant to the Red Tape Reduction Act 2013-88, this rule has been reviewed and is being amended to provide clarification of the proper operation of private passenger vehicles by non-residents of Alabama. A public hearing was held at 1:30 pm on Tuesday, May 10, 2022, via web-conference.
810-6-2-.79.05 Rural Electrification Authority (R.E.A) Repealed Pursuant to review due to the Red Tape Reduction Act 2013-88, Rule 810-6-2-.79.05 was found to be identical to Rule 810-6-1-.148 in content and title. Due to the duplicate nature of these rules, Rule 810-6-2-.79.05 is being repealed. A public hearing was held at 1:30 pm on Tuesday, May 10, 2022, via web-conference.
810-6-3-.37.01 Meals Furnished Along With Rooms By Schools and Colleges. Repealed Pursuant to review due to the Red Tape Reduction Act 2013-88, Rule 810-6-3-.37.01 was found to be identical to Rule 810-6-2-.50 in content and title. Due to the duplicate nature of these rules, Rule 810-6-3-.37.01 is being repealed. A public hearing was held at 1:30 pm on Tuesday, May 10, 2022, via web-conference.
810-6-5-.02.01 State Sales and Use Tax Certificate of Exemption For Entities Having a Statutory Exemption from the Payment of Sales, Use, and Lodgings Taxes. Amended Pursuant to the passing of Act 2021-298, this rule is being amended to include airport authorities to the definition of governmental entities. A public hearing was held at 1:30 pm on Tuesday, May 10, 2022, via web-conference.

Rules Pending Final Adoption

Rule Number Description Intended Action Substance of Proposed Action Date, Time; Location, Hearing was Held
810-27-1-.18.02 Special Rules: Construction Contractors Amended Act 2021-1 amended Section 40-27-1, Code of Ala. 1975, of the Multistate Tax Compact, to provide that a single sales factor be used to apportion a multistate taxpayer’s income to Alabama effective for tax periods beginning on or after January 1, 2021. This rule, along with the other administrative rules pertaining to the Multistate Tax Compact, are being amended to incorporate those changes. A public hearing was held at 1:30 pm on Tuesday, December 7, 2021, via web-conference.
810-27-1-.18.03 Special Rules: Publishing Amended Act 2021-1 amended Section 40-27-1, Code of Ala. 1975, of the Multistate Tax Compact, to provide that a single sales factor be used to apportion a multistate taxpayer’s income to Alabama effective for tax periods beginning on or after January 1, 2021. This rule, along with the other administrative rules pertaining to the Multistate Tax Compact, are being amended to incorporate those changes. A public hearing was held at 1:30 pm on Tuesday, December 7, 2021, via web-conference.
810-27-1-.18.05 Special Rules: Television and Radio Broadcasting Amended Act 2021-1 amended Section 40-27-1, Code of Ala. 1975, of the Multistate Tax Compact, to provide that a single sales factor be used to apportion a multistate taxpayer’s income to Alabama effective for tax periods beginning on or after January 1, 2021. This rule, along with the other administrative rules pertaining to the Multistate Tax Compact, are being amended to incorporate those changes. A public hearing was held at 1:30 pm on Tuesday, December 7, 2021, via web-conference.
810-27-1-.18.07 Special Rules: Telecommunications and Ancillary Service Providers Amended Act 2021-1 amended Section 40-27-1, Code of Ala. 1975, of the Multistate Tax Compact, to provide that a single sales factor be used to apportion a multistate taxpayer’s income to Alabama effective for tax periods beginning on or after January 1, 2021. This rule, along with the other administrative rules pertaining to the Multistate Tax Compact, are being amended to incorporate those changes. A public hearing was held at 1:30 pm on Tuesday, December 7, 2021, via web-conference.
810-5-1-.223 Off-The-Road Machinery – Definitions and Exemptions Amended This rule has been reviewed and is being amended to add the previously referenced Attorney General Opinion language to the body of the rule for added clarification to taxpayers on the registration exemptions for off road vehicles. A public hearing was held at 1:30 pm on Tuesday, February 8, 2022, via web-conference.
810-6-1-.112 Signs Amended Pursuant to the Red Tape Reduction Act 2013-88, this rule has been reviewed and is being amended to provide clarity regarding the taxability of signs. A public hearing was held at 1:30 pm on Tuesday, February 8, 2022, via web-conference.
810-6-1-.46 Contractor’s Liability Amended In compliance with the Red Tape Reduction Act 2013-88 this rule has been reviewed and is being amended to provide contractors with clarity on the taxability of tangible personal property by removing unnecessary language and case quotes and providing these references to the court cases in the statutory authority language. A public hearing was held at 1:30 pm on Tuesday, February 8, 2022, via web-conference.
810-6-2-.91 Soda Fountains And Ice Cream Cabinets Repealed In compliance with the Red Tape Reduction Act 2013-88, this rule has been reviewed and is being repealed as the rule has been determined to be antiquated in nature and unnecessary. A public hearing was held at 1:30 pm on Tuesday, February 8, 2022, via web-conference.
810-3-61-.02 Credits for Contributions to Scholarship Granting Organizations (SGOs). Amended In compliance with the Red Tape Reduction Act 2013-88, this rule was reviewed and is being updated to clarify that a current year credit arising from an Scholarship Granting Organization donation must be applied before any carryforwards. A public hearing was held at 1:30 pm on Tuesday, December 7, 2021, via web-conference.
810-5-1-.232 United States Armed Forces Retired Distinctive License Plates New, Repealed This rule is being repealed and replaced to provide more concise guidance for the certification, recertification, and issuance of all military and veteran license plates. A public hearing was held at 1:30 pm on Tuesday, December 7, 2021, via web-conference.
810-5-1-.239 Registration of Vehicles Used Exclusively To Transport Raw Cotton Repealed In compliance with the Red Tape Reduction Act 2013-88, this rule has been reviewed and is being repealed as the rule is not necessary due to the statutory language already being clearly codified in Section 40-12-245.1, Code of Ala. 1975 A public hearing was held at 1:30 pm on Tuesday, December 7, 2021, via web-conference.
810-5-75-03 Issuance of a Certificate of Title for an Imported Vehicle. Amended This rule has been reviewed and is being amended to include clarification on the requirement that titles are to be issued under surety bond when the source of ownership document from another country does not disclose security interests in the motor vehicle. A public hearing was held at 1:30 pm on Tuesday, December 7, 2021, via web-conference.
810-6-3-.24 Sales to Foreign Governments, Diplomatic and Consular Officials New, Repealed Pursuant to the Red Tape Reduction Act 2013-88, this rule has been reviewed and is being updated to correct code citations, provide headers, and update information that is no longer necessary. A public hearing was held at 1:30 pm on Tuesday, December 7, 2021, via web-conference.
810-7-1-.32 E-Liquid and Alternative Nicotine Product Manufacturers Certification New Pursuant to the passage of Act 2021-453, this rule is being promulgated to provide guidance to certifying e-liquid manufacturers and manufacturers of alternative nicotine products on the certification process for the statutorily required directory to be administered and maintained by the Department. A public hearing was held at 1:30 pm on Tuesday, December 7, 2021, via web-conference.
810-9-1-.06 Financial Institutions Federal Income Tax (FIT) Deduction New Pursuant to the Financial Excise Tax Reform Act 2019-284, this rule is being promulgated to provide guidance on the deduction of Federal Income Taxes (FIT) paid or accrued during the taxable year in accordance with the taxpayer’s method of accounting used in computing taxable income. A public hearing was held at 1:30 pm on Tuesday, December 7, 2021, via web-conference.
810-6-1-.125.01 Amusement Tax Due On Fees Collected By Golf Courses Open To The Public New, Repealed In accordance with the Red Tape Reduction Act (2013-88), this rule has been reviewed and reformatted to detail the difference between public, private, and quasi public or quasi private golf courses. A public hearing was at 1:30 pm on Tuesday, November 9, 2021, via web-conference.
810-27-1-.09 Apportionment Formula: Double Weighting the Sales Factor Amended Act 2021-1 amended Section 40-27-1 to provide that a single sales factor be used to apportion a multistate taxpayer’s income to Alabama effective for periods beginning on or after January 1, 2021. This rule is being amended to incorporate those changes. A public hearing was at 1:30 pm on Tuesday, November 9, 2021, via web-conference.
810-5-1-.205 Commitment to Purchase Distinctive License Plates Amended Pursuant to the Red Tape Reduction Act 2013-88, this rule has been reviewed and is being amended to update formatting and to remove specific registrant requirements submitted through the pre-commitment portal. A public hearing was at 1:30 pm on Tuesday, November 9, 2021, via web-conference.
810-5-1-.207 Motor Vehicle Wreckers Amended This rule has been reviewed pursuant to the Red Tape Reduction Act 2013-88 and is being amended to incorporate language referencing the issuance of the restricted wrecker license plate and to make format changes for a more concise topic flow. A public hearing was at 1:30 pm on Tuesday, November 9, 2021, via web-conference.
810-5-1-.209 Helping Schools Distinctive License Plates Repealed In compliance with the Red Tape Reduction Act 2013-88, this rule has been reviewed and is being repealed as the rule is not necessary due to the statutory language already being clearly codified in Section 32-6-300, Code of Ala, 1975. A public hearing was at 1:30 pm on Tuesday, November 9, 2021, via web-conference.
810-6-3-.77 Exemption For Certain Purchases By Contractors And Subcontractors In Conjunction With Construction Contracts With Certain Governmental Entities Amended This rule is being amended to include statutory updates from Acts 2021-298 and 2021-372 related to exempt purchases by contractors and subcontractors for contracts with governmental entities. A public hearing was at 1:30 pm on Tuesday, November 9, 2021, via web-conference.
810-6-4-.03 Discounts Allowed on Payments of Sales Tax Made Before Delinquency New, Repealed In accordance with the Red Tape Reduction Act 2013-88, this rule is being repealed and readopted to remove antiquated language references and to provide clarification to taxpayers on the calculation of the allowed discount. A public hearing was at 1:30 pm on Tuesday, November 9, 2021, via web-conference.
810-6-4-.13 Permit Issued To Electric Cooperatives, Telephone Companies and Others Repealed In accordance with the Red Tape Reduction Act 2013-88, this rule has been reviewed and was determined to be no longer necessary due to its duplicative nature of Rule 810-6-4-.14. A public hearing was at 1:30 pm on Tuesday, November 9, 2021, via web-conference.
810-6-4-.14 Sales And Use Tax Direct Pay Permit Amended In accordance with the Red Tape Reduction Act 2013-88, this rule has been reviewed and is being amended to simplify the procedural language for the direct payment permit process. A public hearing was at 1:30 pm on Tuesday, November 9, 2021, via web-conference.
810-6-5-.30 Filing And Paying State Sales and Use Taxes and State Administered County and Municipal Sales And Use Taxes On A Quarterly Or Annual Basis New, Repealed This rule has been reviewed and is being repealed and replaced to update the filing frequencies to incorporate the semi-annual filing election for qualifying taxpayers pursuant to the passage of Act 2019-253. A public hearing was at 1:30 pm on Tuesday, November 9, 2021, via web-conference.