Avalara Taxrates > Blog > Sales Tax Rate Changes > Alabama tax rate changes, June 2016 - Avalara

Alabama tax rate changes, June 2016


 New sales and use tax rates in Alabama.

Numerous localities in Alabama have announced local sales and use tax rate changes. Most but not all of these changes took effect on June 1, 2016.

New taxes

  • The City of Oxford levied an 8% sales tax on alcoholic beverages effective March 1, 2016. It must be reported separately from the general sales tax.
  • The City of Red Bay levied a 4% lodgings tax in the police jurisdiction, effective June 1, 2016. The lodgings tax rate within the police jurisdiction but outside the corporate limits of town is 2%.
  • Effective June 1, 2016, the City of Hurtsboro imposes the following use taxes:
    • General rate: 4%
    • Net difference paid for machines, machinery, and equipment used in planting, cultivating and harvesting farm products 1.375%
    • Machines and parts and attachments for machines used in manufacturing tangible personal property: 375%
    • Net difference paid for all automotive vehicles, truck trailers, semitrailers and house trailers .875%
    • Use tax rates within the police jurisdiction but outside the corporate limits of Hurtsboro are half those listed above.

Rate changes

  • The City of Hurtsboro increased sales tax as follows:
  • General rate and the rate for human food sold through vending machines: 4% (previously 3%)
  • Admissions to places of amusement and entertainment: 4% (previously exempt)
  • Net difference paid for machines, machinery, and equipment used in planting, cultivating and harvesting farm products 1.375% (previously 0.250%)
  • Machines and parts and attachments for machines used in manufacturing tangible personal property: 375% (previously 0.500%)
  • Net difference paid for all automotive vehicles, truck trailers, semitrailers and house trailers .875% (previously 0.250%)
  • Withdrawal fee for automotive vehicle dealers: 5% (previously 0.83%)
  • Sales tax rates within the police jurisdiction but outside the corporate limits of Hurtsboro are half those listed above.
  • Effective January 1, 2014, the City of Tuskegee increased lodgings tax from 1% to 7%. The Lodgings tax within the police jurisdiction but outside the corporate limits of Tuskegee is 3.5%.

One administrative change also took effect on June 1, 2016: the Alabama Department of Revenue assumed the administration and collection of lodging tax in the City of Muscle Shoals, Colbert County. The lodging tax rate is 3% in Muscle Shoals and 1.5% within the police jurisdiction but outside the corporate limits of the city.

Automating sales and use tax calculation simplifies compliance in all states. Learn more.


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.