Instructions For Preparation Of Alabama Combined Registration/application Page 2
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37Home Address – Enter the home address of the person listed in the Primary
for the current rate.
• 2.2 Utility Tax – Each person, firm, or corporation, including any corpora-
Name/Last name field.
tions operating an electric or hydroelectric public utility; or a gas public utility; or
Home Telephone Number – Enter the home telephone number of the person
listed in the Primary Name/Last Name field.
any privately owned and operated wastewater system as defined in Section 22-
25B-l which is required by Chapter 25B of Title 22, to be operated and main-
Taxes to register for:
tained by a wastewater management entity certified by the Public Service
• State Sales Tax – is imposed on the retail sale (a sale made to the end-
Commission; or any other public or municipal utility now paying the two and
user) of all tangible personal property sold in Alabama by businesses located in
two-tenths percent shall be subject to the provisions of Section 40-21-53 and
Alabama. (Local taxes are also due, and the rates vary.) Current listings of all
shall pay to the state a license tax equal to two and two-tenths percent on
city and county tax rates and the addresses and telephone numbers of non-
each $1 of gross receipts of such public utility for the preceding year; except,
state administered localities are available on the Department’s Web site at
that gross receipts from the sale of electricity for resale by such electric or
hydroelectric public utilities and gross receipts from the sale of electricity to the
• State Consumers Use Tax – is imposed on tangible personal property
persons identified in subsection (b) of Section 40-21-53 shall be deducted in
brought into Alabama for storage, use, or consumption in the state when the
computing the amount of tax due hereunder.
seller did not collect sales or use tax on the sale of the property. The rates are
• Utility Excise Tax – There is hereby levied, in addition to all other taxes of
the same as Alabama sellers use tax.
every kind now imposed by law, and shall be collected, an excise tax on the
• State Sellers Use Tax – is imposed on the retail sales of all tangible per-
storage, use, or other consumption of electricity, domestic water, natural gas,
sonal property sold in Alabama by businesses located outside of Alabama
telegraph services or telephone services in the State of Alabama. The amount
which have no inventory located in Alabama, but are making retail sales in
of the tax shall be determined by the application of rates against the sales
Alabama via sales offices, agents or by any significant recurring contact or
price of such services in the State of Alabama. The tax shall be computed
“nexus” with Alabama.
monthly with respect to each person to whom such services are furnished.
• State Rental or Leasing Tax – is a privilege tax levied for the leasing or
Please visit our Web site at for the current rate.
renting of tangible personal property. The gross receipts (including any rental
• Pharmaceutical Providers Tax – To provide further for the availability of
tax invoiced) from the leasing or rental of tangible personal property are sub-
indigent health care, the operation of the Medicaid Program and the mainte-
ject to the State Rental tax at the following rates:
nance and expansion of medical services there under, there is levied and shall
• Automotive vehicles – 1.5%
be collected a privilege tax on the business activities of every provider of phar-
• Linens/Garments – 2.0%
maceutical services to the citizens of Alabama, except for a pharmacy, or por-
• Other – 4.0%
tion thereof, serving hospital inpatients or pharmacies owned or operated by
This tax is due on “true leases” (those leases in which the title to the proper-
the State of Alabama or an agency thereof. The privilege tax imposed is in
ty is retained by the lessor at the end of the lease agreement). “Conditional
addition to all other taxes of any kind now imposed by law, and shall be at the
Sale leases” (those in which the title of the property is transferred to the lessee
rate of 10 cents for each prescription filled or refilled for a citizen of Alabama.
• Alabama Nursing Home Privilege Tax – To provide further for the avail-
at the end of the lease agreement) are subject to sales tax.
• State Lodgings Tax – is a privilege tax on persons, firms and corpora-
ability of indigent health care, the operation of the Medicaid program, and the
tions engaged in renting or furnishing rooms, lodgings, or other accommoda-
maintenance and expansion of medical services; there is levied and shall be
tions to transients for periods of less than 180 days of continuous occupation
collected a privilege tax and a supplemental privilege tax on the business activ-
and applies to all charges for providing such accommodations. This tax also
ities of every nursing facility in the State of Alabama. The privilege tax and sup-
applies to charges for personal property used or furnished in such rooms or
plemental privilege tax imposed is in addition to all other taxes. Visit our Web
lodgings.
site at for the current rate.
• Mobile Communication Services Tax – is imposed against every home
• Prepaid Wireless 9-1-1 Service Charge – is imposed against all sellers
service provider doing business in the State of Alabama on account of the fur-
making retail sales of prepaid wireless telecommunication services in this state.
nishing of mobile telecommunications service to a customer with a place of pri-
The Prepaid Wireless 9-1-1 Service Charge shall be collected on each prepaid
mary use in the State of Alabama by said home service provider. The amount
retail transaction regardless of whether the prepaid wireless telephone service
of the tax shall be determined by the application of the rates against gross
is purchased in person at the business location of the seller in Alabama, by
sales or gross receipts, as the case may be, from the monthly charges from
telephone, through the Internet, or by any other method by a consumer in
the furnishing of mobile telecommunications service to a customer with a place
Alabama. For purposes of retail transactions occurring via the Internet, or by
of primary use in the State of Alabama and shall be computed monthly with
other telecommunication devices, the Prepaid Wireless 9-1-1 Service Charge
respect to each person to whom services are furnished at the rate of six per-
shall be collected on each transaction with a customer, if that customer has a
cent on bills regardless of when the services being billed were provided. The
primary street or business address in Alabama and the customer is within the
home service provider furnishing such mobile telecommunications services
licensed service area of the Commercial Mobile Radio Service (CMRS)
shall be entitled to deduct and retain from the gross amount of tax billed by the
provider. The Prepaid Wireless 9-1-1 Service Charge shall be collected by the
home service provider one-fourth of one percent of the gross amount of such
seller from their customers and remitted directly to the state. Visit our Web site
tax billed.
at for the current rate.
• Utility Gross Receipts – There is levied, in addition to all other taxes of
• Income Tax Withholding – In accordance with Act 2011-535, each
every kind now imposed by law, and shall be collected, a privilege or license
employer shall enroll in E-Verify and verify the employment eligibility of the
tax against every utility furnishing electricity, domestic water, natural gas, tele-
employee through the E-Verify System. Alabama law requires employers to
graph or telephone services in the State of Alabama. The amount of the tax
withhold Alabama income tax from wages of their employees. The employer
shall be determined by the application of rates against gross sales or gross
withholds Alabama income tax based on the information submitted by the
receipts, as the case may be, from the furnishing of such services in the State
employee on Form A-4, Employee’s Withholding Exemption Certificate. The tax
of Alabama. The tax shall be computed monthly with respect to each person to
withheld is computed using the formula or tables provided in the Withholding
whom such services are furnished. Please visit our Web site at
Tax Tables and Instructions for Employers located on the Department’s Web
3
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