Alabama Severe Weather Preparedness Sales Tax Holiday, February 2015
- Oct 22, 2014 | Gail Cole
The state of Alabama has provided a sales tax holiday for severe weather preparedness since 2012. The goal is to encourage Alabamians to purchase items that will help them prepare for and survive hurricanes and other severe weather. Qualifying items are exempt from state sales tax during the holiday, which takes place each year during the last full weekend of February. In 2015, it will run from 12:01 a.m. February 20 through midnight, February 22.
Counties and municipalities are not required to participate in Alabama state sales tax holidays, although they may opt to participate by resolution or ordinance adopted at least 30 days prior to the tax-free period. In participating localities, qualifying items are exempt from local sales and use taxes as well as the state sales tax.
Each year, local governments notify the Alabama Department of Revenue of their intent to participate in the sales tax holiday, or not. The first notifications have been posted to the department’s website; more than a dozen localities have announced they will participate and eight have opted to skip it in 2015. See the list.
Managing sales tax holidays is challenging for businesses. For example, if you are required to collect Alabama sales tax and sell items that qualify for the upcoming severe weather preparedness sales tax holiday, you need to alter point of sales systems to reflect the following:
- State sales tax is not collected anywhere in the state during the sales tax holiday.
- Local sales tax is not collected in participating counties and municipalities.
- Local sales tax is collected in non-participating localities.
Make it easier on yourself by implementing automated sales tax software as a service (SaaS). Learn more.