Alabama: Local Rate Changes
- May 29, 2015 | Gail Cole
The governor of Alabama has signed into law a number of measures that either levy new local taxes or grant local tax jurisdictions authority to increase their sales and use taxes.
Beginning August 1, 2015, Calhoun County will levy a 5% sales tax “upon the wholesale and retail price, excluding taxes, of spirituous or vinous liquors sold at retail or wholesale in the county….”
House Bill 607 increases the lodgings tax rate in Covington County from 5% to 7%. The rate change takes effect on August 1, 2015.
House Bill 523 authorizes Jackson County to levy an additional sales and use tax, provided it is approved by a majority of county voters. The issue must be placed on the ballot at the “next general, special, or primary election held in Jackson County after [October 1, 2015]” and the question must be presented in the following manner:
“Do you favor a local law authorizing the Jackson County Commission to levy a sales and use tax of up to one cent per dollar for the Jackson County General Fund?”
Beginning May 27, 2015, Jefferson County is authorized to “levy and assess … a privilege or license tax against retail sales of tangible personal property and amusements (a ‘sales tax’) and an excise tax on the storage, use, or consumption of tangible personal property (a ‘use tax’) … not to exceed one percent.”
In the event such a tax is levied, certain existing sales and use tax in Jefferson County must be simultaneously cancelled.
Beginning June 1, 2016, Tuscaloosa County is authorized to do the following:
- Increase the general rate of sales tax and the rate for admissions to places of amusement and entertainment to 3%.
- Increase the rate of sales tax to 0.75% for automotive vehicles, truck trailers, semitrailers and house trailers.
- Increase the rate of sales tax to 1.125% for manufacturing machinery.
- Change the distribution of the proceeds of the taxes.
- Create the Tuscaloosa County Road Improvement Commission with powers to make appropriations from certain taxes.
Find accurate local sales tax rates for all states with this free sales tax rate map.