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Alabama sales tax changes, February 2018


 New local sales tax rates announced for February in Alabama.

 

Updated January 25, 2018.

Several changes to sales and use tax are set to take effect in Alabama on Feb. 1, 2018.

Administrative changes

Geraldine will no longer use the Alabama Department of Revenue to collect and administer sales and use tax. Beginning with the tax period ending Feb. 28, 2018, collection and administration services will be administered by the Town of Geraldine, Revenue Discovery Systems.

City rate changes

Columbiana is increasing the sales tax rate on the retail selling price of liquor or alcoholic beverages (excepting beer and table wine) from 2% to 4%. As this is on top of the local general rate of tax, the total tax rate on these sales will be 8%.

Florala is increasing sales and use taxes as follows:

  • General rate: from 3% to 3.5%
  • Admissions to places of amusement and entertainment: from 3% to 3.5%
  • Retail selling price of food for human consumption sold through vending machines: from 3% to 3.5%
  • Machines, parts, and attachments for machines used in manufacturing tangible personal property: from 2% to 2.25%
  • Net difference paid for all automotive vehicles, truck trailers, semitrailers, and house trailers: from 1% to 1.25%

However, the town is decreasing the withdrawal fee for automotive vehicle dealers only: from $35 to $5.

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

In Greenville, the local sales and use tax rate will drop from 1.5% to 1% for the following:

  • Net difference paid for machines, machinery, and equipment used in planting, cultivating, and harvesting farm products
  • Net difference paid for all automotive vehicles, truck trailers, semitrailers, and house trailers

The following rate increases will take effect in Grimes:

  • General rate: from 2% to 4%
  • Admissions to places of amusement and entertainment: from 2% to 4%
  • Retail selling price of food for human consumption sold through vending machines: from 2% to 4%
  • Net difference paid for machines, machinery, and equipment used in planting, cultivating, and harvesting farm products: from 0.5% to 1%
  • Machines, parts, and attachments for machines used in manufacturing tangible personal property: from 0.5% to 1%
  • Net difference paid for all automotive vehicles, truck trailers, semitrailers, and house trailers: from 0.5% to 1%

The withdrawal fee for automotive vehicle dealers only will decrease: from $2.50 to $2.00

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

Sales and use tax rates in Haleyville will increase from 3% to 4% for the following:

  • General rate
  • Admissions to places of amusement and entertainment
  • Retail selling price of food for human consumption sold through vending machines

Sales occurring or delivered outside the corporate limits of Haleyville but within the police jurisdiction are taxed at half of the listed rate.

Homewood is imposing a new 9% lodgings tax.

Natural Bridge is levying a new sales and use tax as follows:

  • General rate: 3%
  • Admissions to places of amusement and entertainment: 3%
  • Retail selling price of food for human consumption sold through vending machines: 3%
  • Net difference paid for machines, machinery, and equipment used in planting, cultivating, and harvesting farm products: 1%
  • Machines, parts, and attachments for machines used in manufacturing tangible personal property: 1%
  • Net difference paid for all automotive vehicles, truck trailers, semitrailers, and house trailers: 1%
  • Withdrawal fee for automotive vehicle dealers only: $25

County rate changes

The Alabama Department of Revenue will begin collecting the new Washington County sales and use tax effective Feb. 1, 2018. Rates are as follows:

  • General rate: 1%
  • Admissions to places of amusement and entertainment: 1%
  • Retail selling price of food for human consumption sold through vending machines: 1%
  • Net difference paid for machines, machinery, and equipment used in planting, cultivating, and harvesting farm products: 1%
  • Machines, parts, and attachments for machines used in manufacturing tangible personal property: 1%
  • Net difference paid for all automotive vehicles, truck trailers, semitrailers, and house trailers: 0.5%
  • Withdrawal fee for automotive vehicle dealers only: $0

Washington County is also levying a new rental tax:

  • General rate: 1%
  • Lease or rental of automobile vehicles, truck trailers, semitrailers, and house trailers: 1%
  • Lease or rental of linens and garments: 1%

Tracking and managing sales and use tax changes in multiple jurisdictions complicates sales and use tax compliance. Tax automation software can simplify it. Learn how it works.

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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.