Consumers Use Tax Return Form - Alabama Department Of Revenue (Page 2 of 5) in pdf

from total purchases in the corresponding column of Line 1 to obtain the

measure of tax.

GROSS TAX - COLUMNS A, B & C:

Line 4

Column A, B &

Gross tax for each column will be calculated based on amount from Line 3 x

tax rate shown at column heading.

TOTAL AMOUNT OF TAX:

Line 5

Total of Columns A, B & C of Line 4 (Gross Tax).

LESS TAX PAID ON PURCHASE TO SELLER IN ANOTHER STATE:

Line 6

Enter the amount of tax paid on purchases to a reseller in a reciprocating

state. (See information below.)

PLUS PENALTY AND INTEREST, IF DUE:

Returns filed after the due date are subject to a "failure to timely file" penalty

equal to the greater of 10% of the tax required to be paid on Line 5 of the

return or $50.00. Tax payments received after the due date are subject to a

"failure to timely pay" penalty equal to 10% of the delinquent tax. If the tax is

Line 7

not timely paid, interest is also due at the same rate established by the

Secretary of the Treasury under authority of 26 USC 6621.

(Click here to

determine current interest

rates.)

NOTE: If your return or payment is not timely filed or paid, you will be billed

the appropriate penalties and interest by the ADOR.

LESS CREDIT CLAIMED:

Use Line 8 to claim an amount of credit for a prior overpayment. The credit

claimed will be applied to reduce the tax liability shown on the return.

Line 8

NOTE: Any credit for prior overpayment must be approved in advance by

the ADOR. Credit claimed should not exceed the result of Line 5 (Total

Amount of Tax) and Line 6 (Tax paid on purchase to seller in another State).

Valid excess credit can be claimed on subsequent returns.

TOTAL AMOUNT DUE:

The total amount due is the result of Line 5 (Total Amount of Tax) less Line

Line 9

6 (Tax paid on purchase to seller in another State) plus Line 7 (Penalty &

Interest) less Line 8 (Credit Claimed).

Credit For Taxes Paid to Other States

Code of Alabama 1975, Section 40-27-1, Article V (1) "Each purchaser liable for a use tax on

tangible personal property shall be entitled to full credit for the combined amount or amounts of

legally imposed sales or use taxes paid by him with respect to the same property to another

state and any subdivision thereof. The credit shall be applied first against the amount of any

use tax due the state, and any unused portion of the credit shall be thus applied against the

amount of any use tax due a subdivision."

Only a maximum of 1 1/2, 2, or 4 percent depending on the rate due may be claimed against

the purchase on the state return. Any amount above this paid as tax in another state may be

applied to the local taxes due. Each transaction or purchase must stand alone and the taxes

paid to another state would not be cumulative. Overages of taxes paid on a transaction cannot

be used against taxes due from a second transaction.

Example:

Purchase (No Tax Paid)

$4,000.00

Purchase (7% Tax Paid to Other State)

$6,000.00

Total

$10,000.00

Total Purchases

$10,000.00

Consumers Use Tax Return Form - Alabama Department Of Revenue Page 2

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