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Alabama sales tax rate changes, October 2016


 Sales tax rates in Alabama, October 1, 2016.

Last updated 12.19.2016: The Alabama Department of Revenue has corrected a lodging tax rate increase for the city of Dothan. Previously, it was announced that it would take effect on October 1, 2016. However, the rate change actually takes effect on January 1, 2017.

Local sales and use tax rate changes will take effect in Alabama beginning October 1, 2016.

In Coffeeville, which sounds like a stimulating place, the following rates will increase from 4% to 5%:

  • General rate
  • Rate for food for human consumption sold through vending machines
  • 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

Rates for sales or deliveries made outside the corporate limits of the city but within the police jurisdiction are half of those stated above. Additional information.

Sales and use tax rates are also increasing in York. Tax rates for the following will jump from 3% to 3.5%:

  • General
  • Admission
  • Food for human consumption sold through vending machines

While these rates will jump from 0.5% to 1%:

  • 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
  • Net difference paid for all automotive vehicles, truck trailers, semitrailers and house trailers

The withdrawal fee for automotive vehicle dealers will increase from nil to 5%.

Sales made or delivered outside the corporate limits of the city but within the police jurisdiction are half of those stated above. Additional information.

 

Administrative changes

  • Beginning September 1, 2016, the Alabama Department of Revenue (ADOR) administers and collects lodgings taxes (9%) for the City of Sylacauga.
  • Beginning October 1, 2016, ADOR administers and collects sales/use taxes and any other additional taxes for the City of Linden.
  • Beginning October 1, 2016, ADOR no longer handles tax collection/administration for the Town of Dauphin Island. The town will collect and administer taxes itself.

It can be challenging to stay on top of sales and use tax rates in multiple jurisdictions. Learn how sales tax software can help.

 


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.