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Alabama Sales and Use Tax Rate Changes, August 2014


 Bullock County Courthouse, in Union Springs, Alabama.

On July 18, 2014, the Alabama Department of Revenue posted numerous local tax notes. Several announce sales and use tax rate changes taking effect August 1, 2014. A few announce agency changes. And one announces a sales and use tax rate change that took effect May 1, 2014, in a self-administered town. The department posts notices when it receives them, which is sometimes years after the change took effect. For this reason, it can be challenging for businesses to keep up with sales and use tax changes in Alabama.

August 2014 sales and use tax changes

Chilton County will increase the general rate of sales and use tax from 1% to 2%.

The City of Pleasant Grove, which imposed a sales and use tax rate change in July of this year, is changing the rates again in August. This time, the general rate and the rate for admissions and sales of food for human consumption through vending machines will drop from 5% to 4%.

The Town of Red Bay will impose a use tax at the general rate of 2.5%. However, the use tax rate is 0.5% for the following:

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

Sales and use tax rates for purchases made or used, delivered or consumed outside the corporate limits of the Red Bay but within the police jurisdiction are one-half of the above-listed rates.

The City of Union Springs will increase the general rate of sales and use tax, the rate for admissions, and the rate for food for human consumption sold through vending machines from 2.5% to 3.5%. All other rates remain the same.

Sales and use tax rates for purchases made or used, delivered or consumed outside the corporate limits of the Union Springs but within the police jurisdiction are one-half of the above-listed rates.

July 2014 agency changes

Gordo has discontinued its police jurisdiction (PJ) locality code (but not the police jurisdiction itself). Beginning with the July 2014 tax period, taxes for Gordo PJ locality code 9593 should be reported under Gordo locality code 9393. There is no change in the police jurisdiction tax rate.

Amusement tax in the City of Oxford is no longer reported under locality code 9215. Beginning with the July 2014 tax period, amusement tax in Oxford should be remitted under locality code 9315. There is no rate change.

Amusement tax in Sardis City is no longer reported under locality code 9219. Beginning with the July 2014 tax period, amusement tax in Sardis City should be remitted under locality code 9719. There is no rate change.

May 2014 sales tax rate changes

The City of Irondale increased the use tax rate for the net difference paid for all automotive vehicles, truck trailers, semi-trailers and house trailers. Effective May 1, 2014, the rate jumped from 1% to 1.5%.

Sales and use tax rates outside corporate limits of the City of Irondale but within the police jurisdiction are one-half the rates within the corporate limits.

Click on the links above for additional information for each locality, including where to remit sales and use taxes. Alabama employs home rule, therefore some localities administer their own taxes. The Department of Revenue updated its list of self-administered counties and cities/towns for July 2014.

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photo credit: jimmywayne via photopin cc


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.