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Alabama: Certain Metals Exempt from Sales and Use Tax


Alabama House Bill 401 has been signed into law, exempting certain metals held for investment purposes from the state sales and use tax.

HB 401 amends Code of Alabama 1975 Sections 40-23-4 and 40-23-62.

Section 40-23-4 now reads:

There are exempted from the provisions of this division and from the computation of the amount of the tax levied, assessed, or payable under this division the following: ...

(46) The gross receipts from the sale or sales or metal, other than gold or silver, when such metal is purchased for the purpose of transferring such metal to an investment trust in exchange for shares or other units… . For the purposes of this subsection, the term metals includes, but is not limited to, copper, aluminum, nickel, zinc, tin, lead, and other similar metals typically used in commercial and industrial applications."

Section 40-23-62 now reads:

"The storage, use or other consumption in this state of the following tangible personal property is hereby specifically exempted from the tax imposed by this article: ...

(35) The storage or use of metal, other than gold or silver, when such metal is held by an investment trust …, including metal stored in warehouses located in this state. For purposes of this subsection, the term metals includes, but is not limited to, copper, aluminum, nickel, zinc, tin, lead, and other similar metals typically used in commercial and industrial applications."

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Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.