Alabama sales tax rate changes, Summer 2018
- Jul 12, 2018 | Gail Cole
Numerous local sales, use, rental, and lodging tax rate changes took effect in Alabama in recent months.
Boaz
The City of Boaz increased sales, use, and rental tax rates as of July 1, 2018.
Sales and use tax:
- General rate: 4% to 5%
- Rate for admissions to places of amusement and entertainment: 4% to 5%
- Rate for retail selling price of food for human consumption sold through vending machines: 4% to 5%
All other sales and use tax rates remain the same.
Rental tax rates also increase from 4% to 5% for the following:
- General rate
- Auto
- Linen
Gulf Shores
The City of Gulf Shores increased lodgings tax from 5% to 7% effective May 1, 2018. Rates outside the corporate limits of town but within the police jurisdiction are half of the listed rate.
Hayden
As of June 1, 2018, sales and use tax rates in the Town of Hayden increased as follows:
- General rate: 1% to 2%
- Rate for admissions to places of amusement and entertainment: 1% to 2%
Rates outside of the corporate limits of town but within the police jurisdiction are half of the above.
Henagar
The City of Henagar is levying use, rental, and lodgings taxes as follows starting July 1, 2018.
Use tax:
- General rate: 4%
- Rate for admissions to places of amusement and entertainment: 4%
- Rate for retail selling price of food for human consumption sold through vending machines: 4%
- Net difference paid for machines, machinery, and equipment used in planting, cultivating, and harvesting farm products: 1.5%
- Machines, parts, and attachments for machines used in manufacturing tangible personal property: 1.5%
- Net difference paid for all automotive vehicles, truck trailers, semitrailers, and house trailers: 1.5%
- Withdrawal fee for automotive vehicle dealers: $2
Rental tax:
- General rate: 3%
- Automobile vehicles, truck trailers, semitrailers, and house trailers: 1%
- Linens and garments: 1.5%
Lodgings tax:
- General rate: 4%
The City of Henagar is also increasing the withdrawal fee for automotive vehicle dealers from $1.66 to $2.
Rates within the police jurisdiction but outside the corporate limits of town are half of the above.
Orange Beach
The lodgings tax rate in the City of Orange Beach increased from 5% to 7% effective May 1, 2018. For lodgings outside of the corporate limits of town but within the police jurisdiction, the rate is half of the listed rate.
Tallassee
Effective June 1, 2018, rates for the following jumped from 4% to 5% in the portion of the City of Tallassee that’s in Elmore County:
- General rate
- Rate for admissions to places of amusement and entertainment
- Rate for retail selling price of food for human consumption sold through vending machines
All other rates remain the same. The first payment is due July 20, 2018.
Tallassee straddles more than one county. The portion of Tallassee in Tallapoosa County levied a sales and use tax as of June 1, 2018, as follows:
- General rate: 4%
- Rate for admissions to places of amusement and entertainment: 4%
- Rate for retail selling price of food for human consumption sold through vending machines: 4%
- Net difference paid for machines, machinery, and equipment used in planting, cultivating, and harvesting farm products: 0.60%
- Machines, parts, and attachments for machines used in manufacturing tangible personal property: 0.60%
- Net difference paid for all automotive vehicles, truck trailers, semitrailers, and house trailers: 0.60%
- Withdrawal fee for automotive vehicle dealers: $3.32
Rates outside of the corporate limits of town but within the police jurisdiction are half of the above.
Vernon
The City of Vernon is imposing a 4% lodgings tax as of June 1, 2018. The first payment is due July 20, 2018. The rate outside the corporate limits of Vernon but within the police jurisdiction is 2%.
Vestavia Hills
Effective June 1, 2018, sales and use tax rates in the City of Vestavia Hills changed as follows:
- General rate: increased from 3% to 4%
- Rate for admissions to places of amusement and entertainment: increased from 3% to 4%
- Rate for retail selling price of food for human consumption sold through vending machines: decreased from 3% to 1%
- Net difference paid for machines, machinery, and equipment used in planting, cultivating, and harvesting farm products: decreased from 3% to 1%
Withdrawal fee for automotive vehicle dealers: increased from $.83 to $5
Rental tax:
- General rate: increased from 3% to 4%
- Linen: decreased from 3% to 2%
Lodgings tax:
- General rate: increased from 3% to 6%
- Per-room lodgings fee: decreased from 4% to 0%
Winfield
In the City of Winfield, the sales and use tax rate increased from 4% to 5% on June 1, 2018, for the following:
- General rate
- Rate for admissions to places of amusement and entertainment
- Rate for retail selling price of food for human consumption sold through vending machines
Additional rate increases are as follows:
- Net difference paid for machines, machinery, and equipment used in planting, cultivating, and harvesting farm products: 1% to 1.25%
- Machines, parts, and attachments for machines used in manufacturing tangible personal property: 1% to 1.25%
- Net difference paid for all automotive vehicles, truck trailers, semitrailers, and house trailers: 1% to 1.25%
- Withdrawal fee for automotive vehicle dealers: $5 to $10
Administrative changes
Butler County started self-collection and administration of county sales and use tax and any additional taxes effective July 1, 2018.
The City of Guin authorized the Alabama Department of Revenue to administer and collect all local sales, use, rental, and lodgings taxes starting June 1, 2018.
The Alabama Department of Revenue is administering and collecting sales and use taxes for the City of Henagar effective June 1, 2018.
The City of Leeds authorized the Alabama Department of Revenue to administer and collect all local sales, use, lodgings, and rental taxes starting July 1, 2018.
The Alabama Department of Revenue is administering and collecting sales and use taxes for the Town of New Site effective July 1, 2018.
The City of Vernon authorized the Alabama Department of Revenue to administer and collect all local sales and use taxes starting May 1, 2018.
Need more sales and use tax rates for Alabama? Get the Alabama tax rate table here.
