Alabama Sales Tax Rate Changes, March 2016
- Sales Tax Rate Changes
- Feb 23, 2016 | Gail Cole
Local sales and use tax rate changes occur frequently in Alabama.
March 1, 2016 rate changes
A local 2% tax levy was set to expire at the end of February 2016. Instead, the city is extending the 2% tax. Rates therefore remain the same:
- The general rate, rate for admissions to places of entertainment, and the rate for human food sold through vending machines is 5%
- The net difference paid for machines, machinery, and equipment used in planting, cultivating and harvesting farm products is 0.75%
- The rate for machines and parts and attachments for machines used in manufacturing tangible personal property, and the rate for the net difference paid for all automotive vehicles, truck trailers, semitrailers and house trailers are both 1%
- The withdrawal fee for automotive vehicle dealers is 0.83%
Sales made outside the corporate limits of the city but within the police jurisdiction are half of those listed above.
The general rate of sales and use tax and the rate for admissions to places of amusement and entertainment are increasing from 1.5% to 2.5%, effective March 1. Sales and use tax rates within the police jurisdiction but outside the corporate limits of the city are half of the in-city rates.
Past rate changes
The Alabama Department of Revenue has also announced the following past rate changes:
- The City of Columbiana increased the rate for the net difference paid for all automotive vehicles, truck trailers, semitrailers and house trailers from 1.5% to 2%, effective January 1, 2016.
- The City of Russellville increased its lodgings tax from 2% to 4% on March 1, 2001. The Alabama Department of Revenue underscores that this is “a prior lodgings tax increase.” Rates outside the corporate limits of town but within the police jurisdiction are half.
- The City of Warrior decreased the rate for the net difference paid for all automotive vehicles, truck trailers, semitrailers and house trailers from 1.750% to 1%, effective November 1, 2015.
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