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Alabama tax rate changes, January 2018


 Many local tax rate changes took effect in Alabama Jan. 1, 2018.

Local sales and use tax changes occur frequently in Alabama. The following changes took effect Jan. 1, 2018.

Administrative changes

Chilton County is administering its own lodgings taxes, having discontinued the services rendered by the Alabama Department of Revenue as of Jan. 1, 2018. Henceforth, Chilton County lodging taxes should be remitted to Chilton County, Revenue Discovery Systems.

The Alabama Department of Revenue is no longer administering and collecting sales and use tax for Escambia County; as of Jan. 1, 2018, administration is through Escambia County, Revenue Discovery Systems. However, taxes may still be remitted online through My Alabama Taxes.

Lodgings tax rate changes

Elberta is imposing a new lodgings tax at a rate of 7%.

Madison has increased lodgings tax from 7% to 9%, and upped its per room lodgings fee from 1% to 2%.

Pell City has increased lodgings tax from 5% to 6%.

Rental tax rate changes

Elberta is imposing a new rental tax as follows:

  • Lease or rental of tangible personal property: 2%
  • Lease or rental of automotive vehicles, truck trailers, semitrailers, and house trailers: 1%
  • Lease or rental of linens and garments: 2%

Rents outside the corporate limits of Elberta but within the police jurisdiction are half of the above.

Sales and use tax rate changes

Center Point has increased sales and use tax as follows:

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

Covington County has increased sales and use tax as follows:

  • The general rate: 2% to 2.5%
  • The rate for human food sold through vending machines: 2% to 2.5%

In addition, Covington County has made the following rate changes:

  • Net difference paid for machines, machinery, and equipment used in planting, cultivating, and harvesting farm products: 1% to 1.25% (sales tax); 1.5% to 1.75% (use tax)
  • Machines, parts, and attachments for machines used in manufacturing tangible personal property: 1% to 1.25% (sales tax); 1.5% to 1.75% (use tax)
  • Net difference paid for all automotive vehicles, truck trailers, semitrailers, and house trailers: 1% to 1.25% (sales tax); 1.5% to 1.75% (use tax)

Good Hope has levied a new 0.5% sales and use tax on the following:

  • The general rate
  • The rate for admissions to places of amusement and entertainment
  • The rate for human food sold through vending machines
  • The rate for machines, parts, and attachments for machines used in manufacturing tangible personal property

Montevallo has increased the general rate, the rate for admissions to places of amusement and entertainment, and the rate for human food sold through vending machines from 4% to 5%.

Waverly has increased sales and use tax from 1% to 2% for the following:

  • The general rate
  • The rate for admissions to places of amusement and entertainment
  • The rate for human food sold through vending machines
  • Net difference paid for machines, machinery, and equipment used in planting, cultivating, and harvesting farm products
  • Machines, parts, and attachments for machines used in manufacturing tangible personal property
  • Net difference paid for all automotive vehicles, truck trailers, semitrailers, and house trailers

Rates outside the corporate limits of Waverly but within the police jurisdiction are half of the above.

The Alabama Department of Revenue administers approximately 200 different city and county sales taxes. However, it allows localities to administer their own local taxes, and many do. This complicates sales and use tax compliance for businesses making sales into the state. Tax automation software helps simplify it.


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.