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Local sales tax rates rising in Alabama


 Alabama local sales and use tax rate changes.

Numerous local sales, use, and lodging tax rates in Alabama are set to increase this autumn.

Because Alabama allows home rule, many localities (cities, counties, towns) determine and administer their own local taxes. Those that do might not notify the Alabama Department of Revenue of changes in a timely manner. For example, one of the changes listed below occurred in 2011 and is only now being shared by the department. A list of self-administered localities is here.

Administrative changes

Bakerhill will administer its own sales and use tax effective for the tax period ending Nov. 30, 2017. However, Bakerhill taxes may still be remitted online through My Alabama Taxes (MAT).

Prichard will administer its own sales and use tax effective for the tax period ending Dec. 31, 2017. These, too, may still be remitted online through MAT.

Lodgings tax rate changes

Hueytown recently alerted the Department of Revenue of a general lodgings tax rate change that took effect June 1, 2011. Lodgings tax in Hueytown has apparently been 6% since then.

Huntsville increased both the general lodgings tax rate and the per room lodgings fee as of Oct. 1, 2017. The general rate increased from 7% to 9%. The per room fee increased from 1% to 2%.

An additional per room lodgings fee takes effect in Cherokee County as of Nov. 1, 2017. The general lodgings tax in the county is 5%. The new per room lodgings fee is $2.

The city of Southside levies a 5% lodgings tax as of Oct. 1, 2017.

Sales and use tax rate changes

As of Oct. 1, 2017, Cedar Bluff increased sales tax as follows:

  • General rate: 2% to 2.5%
  • Admissions to places of amusement and entertainment: 2% to 2.5%
  • Vending machine sales: 2% to 2.5%
  • Net difference paid for machines, machinery, and equipment used in planting, cultivating, and harvesting farm products: 0.5% to 1%
  • Machines and parts and attachments for machines used in manufacturing tangible personal property: 1% to 2.5%
  • Net difference paid for all automotive vehicles, truck trailers, semitrailers, and house trailers: 0.5% to 1%

Certain use tax rates in Cedar Bluff also increased on that date:

  • General rate: 2% to 2.5%
  • Net difference paid for machines, machinery, and equipment used in planting, cultivating, and harvesting farm products: 0.5% to 1%
  • Machines and parts and attachments for machines used in manufacturing tangible personal property: 1% to 1.5%
  • Net difference paid for all automotive vehicles, truck trailers, semitrailers, and house trailers: 0.5% to 1%

Cuba is increasing sales and use tax rates as follows on Nov. 1, 2017:

  • General rate: 2% to 3%
  • Admissions to places of amusement and entertainment: 2% to 3%
  • Vending machine sales: 2% to 3%

Other rates in Cuba remain unchanged. Transactions occurring outside the corporate limits of town but within the police jurisdiction of the city are taxed at half of the rates listed above.

Gadsden will increase the following sales and use tax rates as of Nov. 1, 2017:

  • General rate: 4% to 5%
  • Admissions to places of amusement and entertainment: 4% to 5%
  • Vending machine sales: 4% to 5%

The following sales and use tax rate changes take effect in Elberta on Nov. 1, 2017:

  • General rate: 3% to 4%
  • Admissions to places of amusement and entertainment: 3% to 4%
  • Vending machine sales: 3% to 4%
  • Net difference paid for machines, machinery, and equipment used in planting, cultivating, and harvesting farm products: 2% to 3%
  • Machines and parts and attachments for machines used in manufacturing tangible personal property: 2% to 3%
  • Net difference paid for all automotive vehicles, truck trailers, semitrailers, and house trailers: 2% to 3%

Rates for transactions occurring within the police jurisdiction of Elberta but outside the corporate limits of town are half of the above.

Pike County increased sales and use tax as follows on Oct. 1, 2017:

  • General rate: 2% to 3.5%
  • Admissions to places of amusement and entertainment: 1% to 2.5%
  • Vending machine sales: 1% to 2.5%
  • Net difference paid for machines, machinery, and equipment used in planting, cultivating, and harvesting farm products: 0.5% to 2%
  • Machines and parts and attachments for machines used in manufacturing tangible personal property: 0.5% to 2%
  • Net difference paid for all automotive vehicles, truck trailers, semitrailers, and house trailers: 0.5% to 2%

Rates inside the corporate limits of Troy, Pike County, also increased on Oct. 1:

  • General rate: 2% to 2.5%
  • Admissions to places of amusement and entertainment: 1% to 1.5%
  • Vending machine sales: 1% to 1.5%
  • Net difference paid for machines, machinery, and equipment used in planting, cultivating, and harvesting farm products: 0.5% to 1%
  • Machines and parts and attachments for machines used in manufacturing tangible personal property: 0.5% to 1%
  • Net difference paid for all automotive vehicles, truck trailers, semitrailers, and house trailers: 0.5% to 1%

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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.