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Alabama sales tax changes, July 2017


 Many local sales tax changes took effect in Alabama on July 1.

Numerous sales and use tax rate changes took effect in Alabama on July 1, 2017.

County sales tax rate changes

There are four local jurisdictions in Escambia County, each with its own reporting code. All have rate changes effective July 1:

Escambia County Jurisdiction 7027:

  • The general sales and use tax rate, rate for admissions to places of amusement and entertainment, and rate for food for human consumption sold through vending machines increase from 1 to 2%
  • The rate for the net difference paid for machines, machinery, and equipment used in planting, cultivating, and harvesting farm products; the rate for machines, 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, semi-trailers, and house trailers increase from 0.5 to 1%
  • The withdrawal fee for automotive vehicle dealers increases from $2.50 to $5.00

Escambia County Jurisdiction 7127:

  • The general sales and use tax rate, rate for admissions to places of amusement and entertainment, and rate for vending machine food sales increase from 2.5 to 3.5%
  • The rate for the net difference paid for machines, machinery, and equipment used in planting, cultivating, and harvesting farm products; the rate for machines, 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, semi-trailers, and house trailers increase from 0.5 to 1%
  • The withdrawal fee for automotive vehicle dealers increases from $2.50 to $5.00

Escambia County Jurisdiction 7227:

  • The general sales and use tax rate, rate for admissions to places of amusement and entertainment, and rate for vending machine food sales increase from 3.00/4.00% to 4.00/5.00%
  • The rate for the net difference paid for machines, machinery, and equipment used in planting, cultivating, and harvesting farm products; the rate for machines, 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, semi-trailers, and house trailers increase from 0.5 to 1%
  • The withdrawal fee for automotive vehicle dealers increases from $2.50 to $5.00

Escambia County Jurisdiction 7727:

  • The general sales and use tax rate, rate for admissions to places of amusement and entertainment, and rate for vending machine sales increase from 4 to 5%
  • The rate for the net difference paid for machines, machinery, and equipment used in planting, cultivating, and harvesting farm products; the rate for machines, 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, semi-trailers, and house trailers increase from 0.5 to 1%
  • The withdrawal fee for automotive vehicle dealers increases from $2.50 to $5.00.

In Randolph County, all local sales and use tax rates increase from 2% to 2.5%.

City rate changes

Albertville sales and use taxes:

  • The general rate, rate for admissions to places of amusement and entertainment, and rate for vending machine food sales increase from 4 to 5%
  • The rate for the net difference paid for machines, machinery, and equipment used in planting, cultivating, and harvesting farm products; and the rate for machines, parts, and attachments for machines used in manufacturing tangible personal property increase from 1.5 to 1.875%
  • The rate for the net difference paid for all automotive vehicles, truck trailers, semi-trailers, and house trailers increases from 0.5% to 0.625%
  • The withdrawal fee for automotive vehicle dealers increases from $1.66 to $2.66
  • Rental taxes for autos increase from 2 to 2.5%

Sales or use taxes within the police jurisdiction but outside of the corporate limits of Albertville are half of the above.

Ashville sales and use taxes

  • The general rate increases from 3 to 4%
  • There are no other local rate changes

Sales or use taxes within the police jurisdiction but outside of the corporate limits of Ashville are half of the above.

Gurley sales taxes

  • The general rate increases from 3 to 3.5%
  • The rate for admissions to places of amusement and entertainment increases from 2 to 3.5%
  • The rate for food for human consumption sold through vending machines increases from 3 to 3.5%
  • The rate for the net difference paid for machines, machinery, and equipment used in planting, cultivating, and harvesting farm products; the rate for machines, 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, semi-trailers, and house trailers increase from 2 to 3.5%

Gurley use taxes increase from 2% to 3.5% for the following:

  • The general rate
  • The rate for the net difference paid for machines, machinery, and equipment used in planting, cultivating, and harvesting farm products; the rate for machines, 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, semi-trailers, and house trailers

Sales or use taxes within the police jurisdiction but outside of the corporate limits of Gurley are half of the above.

Midland City sales and use taxes

  • The general rate increases from 2 to 3%
  • A new sales and use tax on admissions to places of amusement and entertainment is imposed at 3%
  • The rate for food for human consumption sold through vending machines increases from 2 to 3%
  • The rate for the net difference paid for machines, machinery, and equipment used in planting, cultivating, and harvesting farm products; the rate for machines, 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, semi-trailers, and house trailers increase from 0.5 to 1.5%
  • The withdrawal fee for automotive vehicle dealers increases from 2.5 to 5%

Sales or use taxes within the police jurisdiction but outside of the corporate limits of Midland City are half of the above.

Reform sales and use taxes

  • The general sales and use tax rate, rate for admissions, and rate for vending machine food sales increase from 1 to 2%
  • The rate for the net difference paid for machines, machinery, and equipment used in planting, cultivating, and harvesting farm products; the rate for machines, 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, semi-trailers, and house trailers increase from 0.5 to 1.5%

Sales or use taxes within the police jurisdiction but outside of the corporate limits of Reform are half of the above.

In the Town of Rockford, all local rates increase from 2 to 3%. Sales or use taxes within the police jurisdiction but outside of the corporate limits of Rockford are taxed at 1.5%.

Administrative changes

The Alabama Department of Revenue administers and collects sales and use tax and other taxes for the City of Hartselle and the Town of Gordo as of July 1, 2017.

Alabama sales and use tax rate changes can occur at any time of year, and they occur frequently. Adding to the complexity, some jurisdictions self-administer their taxes, some outsource, and some rely on the Alabama Department of Revenue to collect tax revenue. As with rates, the administrating agency is subject to change. Questions about local sales and use tax should be directed to the Alabama Department of Revenue: 334-242-1490 or 866-576-6531.

Companies doing business in Alabama can facilitate sales and use tax compliance by using tax automation software. Learn how it works.


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.