For more information: Alabama Motor Vehicle Division P.O. Box 327630 Montgomery, AL 36132-7630 (334) 242-9000 www.ador.state.al.us/motorvehicle/index.html
Seller's Use Tax
This tax is imposed on the retail sales of all tangible personal property sold in Alabama by businesses located outside Alabama that have no inventory for sale in Alabama but only a sales office or agents soliciting retail sales in Alabama. This tax is due on a monthly basis and is to be remitted by the 20th of the month following the close of a month.
Consumer’s Use Tax
This tax is imposed on tangible personal property brought into Alabama for its storage, use or consumption in the state when the supplier did not collect seller’s use tax on the sale of the property. This tax is due on a monthly basis and is to be remitted by the 20th of the month following the close of a month. The rates are the same as shown above.
Lodgings Tax
the lease agreement, are subject to sales tax. This tax, in both cases, should be remitted by the 20th of each month following the month that the tax accrues.
Privilege/Business License Tax
A privilege license is a license requirement of every person, firm, company or corporation engaged in any business, vocation, occupation or profession described in Title 40-12 Code of Alabama 1975. The annual license covers the period of October 1 through September 30. The license will be delinquent on November 1. Please refer back to Chapter 2 Licenses and Permits for more detailed information.
Store Licenses
Any person, firm, corporation, association or copartnership, either foreign or domestic, is required to obtain a license to operate, maintain, open or establish any store in this state in which goods, wares, or merchandise of any kind are sold, at either retail or wholesale. A check with city and county officials will determine what local licenses and permits are necessary. You can learn more about these and other industryspecific taxes at the Alabama Department of Revenue (site previously mentioned).
This is a privilege tax upon every person or firm that rents or furnishes lodgings or accommodations to transients for a fee. The tax is remitted on the 20th of Starting a business is one of the most exciting things in life! The Chamber’s Business Resource Center each month following the month the tax accrues. can help you get started and thrive. The Center In addition to the state rate, there may be city and/or provides guidance from experienced sources in developing business contacts, strategizing your county lodging taxes due; these rates vary. business plan, and gaining recognition for your business. With the Chamber Business Resource Rental or Leasing Tax Center, you have years of experience and proven This is a privilege tax levied on the lessor for the strategies for success. leasing or renting of tangible personal property. Leasing tax is due on “true” leases. “True” leases are those in which the title to the property is retained by the lessor at the end of the lease agreement. “Conditional sale” leases, leases in which the title to the property is transferred to the lessee at the end of
Contact the Chamber Business Resource Center at 334-832-4790 or visit Montgomerychamber.com We help you Learn, Connect and Grow!
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