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Alabama Tax Rate Changes, Spring 2016


 Alabama announces past, present and future tax rate changes.

Several local sales and use tax and lodging tax rate changes have been announced for Alabama for April and May, 2016. In addition, the Alabama Department of Revenue has posted information regarding a number of past rate changes.

Changes effective April 1, 2016

  • Local lodgings tax in the City of Luverne is 4%. The rate outside the corporate limits of town but within the police jurisdiction is 2%.
  • The use tax automotive rate in the City of Warrior dropped from 1.750% to 1%. The rate outside the corporate limits of town but within the police jurisdiction is 0.5%.
  • The Alabama Department of Revenue commenced tax administrative services for the Town of County Line.

Changes effective May 1, 2016

  • The City of Vernon is decreasing the sales tax rate from 2% to 1.5% for the following:
    • Net difference paid for machines, machinery, and equipment used in planting, cultivating and harvesting farm products
    • Machines and parts and attachments for machines used in manufacturing tangible personal property
  • The City of Vernon is decreasing the use tax rate from 2% to 1% for the following:
    • Net difference paid for machines, machinery, and equipment used in planting, cultivating and harvesting farm products
    • Machines and parts and attachments for machines used in manufacturing tangible personal property
  • The City of Vernon is decreasing the sales and use tax rate from 2% to 1% for the following:
    • Net difference paid for all automotive vehicles, truck trailers, semi-trailers and house trailers

Note that use tax rates are not always the same as sales tax rates.

Rates for sales made outside the corporate limits of town but within the police jurisdiction are half those listed above.

Past rate changes

  • Local lodgings tax in the City of Atmore is 10%, effective April 1, 2011. The rate outside the corporate limits of town but within the police jurisdiction is 5%.
  • The City of Good Hope levied a lodgings tax of 2.5%, effective December 1, 2012.
  • Effective December 1, 2005, the City of Red Bay does not levy a lodgings tax in their police jurisdiction.

Keeping up with sales and use tax and lodgings tax rate changes in any one state is challenging. Managing these taxes in multiple states is downright stressful.

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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.