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Keeping Up with Alabama Sales Tax Rate Changes


 Hunting Alabama rate changes.

The following Alabama localities have seen recent sales tax rate changes:

Courtland

The Town of Courtland increased its sales and use tax rates, effective July 1, 2013. All rates were increased by 1%, to 2%: general, admissions, food from vending machines, machinery and parts, etc.

The Alabama Department of Revenue administers taxes for Courtland.

Kimberly

Effective July 1, 2013, the Town of Kimberly increased the sales and use tax rate and rental tax rate:

The general rate, and the tax on admissions and food for human consumption sold via vending machines has increased 1%, to 4%.

RDS administers taxes for Kimberly.

Hodges

Effective August 1, 2013, the Town of Hodges increased its sales and use tax rate by 1% to 2%. This rate applies to general rate items, admissions, and food from vending machines.

The rates for farm machinery, manufacturing machinery, automotive vehicles, truck trailers, semitrailers, and house trailers increased from 0.5% to 0.75%.

Sales made outside the town's corporate limits but within its police jurisdiction are taxed at one-half the rates listed above.

RDS administers taxes for Hodges.

Loxley

Town of Loxley imposed a new 2% rental tax on autos and for linens at the rate of 2%, effective June 16, 2013. The general item rental tax rate remains 2%.

The tax outside the town's corporate limits but within the police jurisdiction is one-half the rate listed above.

RDS administers taxes for Loxley.

Lodgings tax

Huntsville

The lodgings tax rate in the City of Huntsville increased by 1% to 7%. There is an additional per room lodgings fee of $1.

The notice lists the effective date as July 1, 2013. However, according to the Local Tax Notices table, the new rate takes effect August 1, 2013. Best to call Huntsville to confirm: 256.427.5068.

Taxes for Huntsville are administered by the Alabama Department of Revenue’s online filing system.

Irondale

Effective August 1, 2013, the City of Irondale increased its lodgings tax rate by 1%. The new rate is 7%.

The City of Irondale administers the lodgings taxes: City of Irondale, Irondale, AL 35210; 205.956.9200

Back in the day

The following localities have had lodgings tax rate changes, just not recently:

Albertville

The City of Albertville increased its lodgings tax rate by a whopping 3%. The new rate, which took effect back on June 1, 2012, is 6%.

Tax rates outside city limits but within the police jurisdiction are half the rate listed above.

RDS administers lodgings taxes for Albertville.

Guin

If you’ve stayed in Guin, Alabama, since February 2011, you may have noticed your room was subject to a lodgings tax of 9%. The City of Guin has known this since 2011, but it only recently let the Alabama Department of Revenue in on the secret.

Tax rates outside of Guin’s corporate limits but within the police jurisdiction are one-half the rate listed above.

Taxes for the City of Guin are administered by RDS.

Red Bay

Back in December 2005, the City of Red Bay increased its lodging tax rate by 1.5%, to 4%. Now you know, and now the Alabama Department of Revenue knows, too.

Questions? It’s best to go to the source, which is the City of Red Bay. P.O. Box 2002, Red Bay, AL 35582; 256.356.4473.

Springville

On August 1, 2007, the City of Springville levied a lodgings tax of 6% and a $1 fee per room. Didn’t know? Neither did the Alabama Department of Revenue. Now everyone knows.

RDS administers taxes for Springville.

Administrative changes

The following localities, both of which are administered by the state, have administrative changes, effective August 1, 2013:

Fairhope

Effective August 1, 2013, the Alabama Department of Revenue is administering sales and use taxes for the City of Fairhope, along with many other taxes. Local tax returns for the period ending August 31, 2013, due September 20, 2013, should be filed with the DOR.

Montevallo

Effective August 1, 2013, the Alabama Department of Revenue is administering sales and use taxes for the City of Montevallo, along with many other taxes. Local tax returns for the period ending August 31, 2013, due September 20, 2013, should be filed with the DOR.

Reaching out

The address for RDS (Revenue Discovery Systems):

Sales Tax Division P. O. Box 830725 Birmingham, AL 35283-0725 205.324.0088  

The address for the Alabama Department of Revenue:

Sales and Use Tax Division Post Office Box 327710 Montgomery, Alabama 36132-7710 334.242.1490 or 866.576.6531  

How on earth do you keep track of sales tax rate changes in Alabama? Maybe it's time to let someone else do it for you.

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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.