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Alabama Sales Tax Rate Changes


 Selma

Numerous local sales and use tax rate changes will take effect in Alabama on April 1, 2016. In addition, the Alabama Department of Revenue has posted past rate changes, dating from 2013 and earlier this year.

April 2016 rate changes

  • Decatur will levy a new sales, use and rental tax in the police jurisdiction, at a rate of one-half of those levied in the corporate limits of the town.
  • Pelham will increase lodgings tax from 3% to 6%.
  • Rainsville will decrease the use tax for manufacturing machines and parts from 4% to 2%. Rates outside the corporate limits of town but within the police jurisdiction are half of the in-town rates.

April 2016 administrative changes

  • The Alabama Department of Revenue will begin administering and collecting sales and use tax for Elberta.
  • The Alabama Department of Revenue will no longer administer or collect sales and use tax for Fairfield.
  • Selma will also discontinue using the administrative services of the Alabama Department of Revenue.

Past rate changes

  • Powell decreased the use tax manufacturing machine rate from 3% to 1%, effective March 1, 2016.
  • Sylacauga increased lodging tax from 6% to 9% as of December 1, 2013.
  • Chelsea discontinued the levy of sales and use taxes outside the corporate limits of town but within the police jurisdiction of the city as of July 1, 2013.

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photo credit: The Edmund Pettis Bridge in Selma, Alabama via photopin (license)


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.