Alabama Prepares for Severe Weather in 2015
- Sales Tax News
- Dec 22, 2014 | Gail Cole
While many of us are furiously preparing for the holidays, the Alabama Department of Revenue is preparing for severe weather—or at least for the state’s February 2015 Severe Weather Preparedness Sales Tax Holiday.
Local tax jurisdictions are not required to participate in the upcoming tax-free period. Counties and municipalities are asked to inform the Department of Revenue of their intent to participate (or not) no later than January 20, 2015. As the departmental notice reminds, “Your taxpayers want to know if your locality will participate in the 2015 Weather Preparedness Tax Holiday.”
Taxpayers really do want to know, and not simply so savvy shoppers can save tax on bungee cords, plastic sheeting and duct tape. Businesses need to prepare for tax-free periods. Qualifying items are exempt from Alabama state sales tax throughout the state during the sales tax holiday but only exempt from local sales tax in participating localities. Sellers need to know how much tax to collect or not collect.
The list of participating/nonparticipating localities is gradually growing. Sixteen counties/cities recently informed the department that they will participate; three let it be known that they will not. See the list.
Automated sales tax software as a service (SaaS) simplifies transaction tax management—even when sales tax holidays are involved. Learn more.