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Alabama Local Sales Tax Rate Changes, July 2013


 Alabama DOR announces local rate changes for June and July 2013.

The Department of Revenue has announced a number of local rate changes.

July 2013 Rate Changes

Chelsea:

Effective July 1, 2013, the City of Chelsea will increase its sales and use taxes by 1%, from 3% to 4%.

The rate for the "net difference paid for machines, machinery, and equipment used in planting, cultivating and harvesting farm products" and the "net difference paid for all automotive vehicles, truck trailers, semi-trailers and house trailers" increases from .5% to 1%.

The rate for "machines and parts and attachments for machines used in manufacturing tangible personal property" increases 1%, from 1% to 2%.

Rates for the police jurisdiction of the city (outside the corporate limits of the city) are half of the above-stated rates.

All rental taxes in Chelsea are increasing 1%, from 2% to 3%.

Andalusia:

Effective July 1, 2013, the City of Andalusia will increase its sales and use taxes by 1.5%, from 2% to 3.5%.

The rate for the "net difference paid for machines, machinery, and equipment used in planting, cultivating and harvesting farm products" stays the same, at .5%

The rate for "machines and parts and attachments for machines used in manufacturing tangible personal property" stays the same, at 1%.

The rate for the "net difference paid for all automotive vehicles, truck trailers, semi-trailers and house trailers" stays the same, at .25%.

The withdrawal fee for automotive vehicle dealers will see a significant increase, from 1% to 5%.

RDS, in Birmingham, administers taxes for Chelsea and Andalusia.

June 2013 Rate Changes

The Department of Revenue also announced two local Alabama rate changes that took place on June 1, 2013.

Baldwin County, which administers its own taxes, decreased the sales and use tax from 1.750 to 1.250 for the following:

  • "Net difference paid for machines, machinery, and equipment used in planting, cultivating and harvesting farm products;"
  • Machines and parts and attachments for machines used in manufacturing tangible personal property;" and
  • Net difference paid for all automotive vehicles, truck trailers, semi-trailers and house trailers."

The City of Calera increased the sales and use tax rate by 1%, from 3% to 4%, for everything except the "net difference paid for all automotive vehicles, truck trailers, semi-trailers and house trailers." That rate remains the same, 1%. RDS in Birmingham, administers taxes for the City of Calera.

Remember Upcoming Change to MAT

Anyone doing business in Alabama would do well to remember that the Department of Revenue's "Paperless Filing & Payment System" will be discontinued, effective July 1, 2013. It will be replaced by My Alabama Taxes.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
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.