Consumers Use Tax Return Form - Alabama Department Of Revenue (Page 4 of 5) in pdf

What Is Use Tax?

General Rate – 4%

Use tax is the counterpart of sales tax. It is applied

All other taxable tangible personal property is taxed

when merchandise is purchased outside of Alabama

at the rate of 4% of the purchase price.

and imported into the state. The use tax rate is the

Questions Often Asked:

same as the sales tax rate.

Do I have to pay use tax on telephone or

Why A Use Tax?

mail-order purchases?

The Alabama use tax was enacted in 1939 to prevent

Yes. If you make a purchase from outside the state

vendors located outside the state from having an unfair

by telephone or mail order and the vendor fails to

competitive advantage against the instate vendors who

charge you tax, you are responsible for paying use tax.

have to charge the sales tax. The liability for paying the

use tax falls on the purchaser. If the vendor does not

Who should pay use tax?

collect the use tax, it is the responsibility of the pur-

Individuals and businesses are required to pay use

chaser to self-assess and report the tax due to the

tax when making out-of-state purchases that are subject

Alabama Department of Revenue.

to use tax.

What Is Taxable?

How is use tax reported and paid?

The use tax applies to the same merchandise that is

To report use tax to the state, complete and send the

taxable under the Alabama sales tax law. This includes

attached form with a payment to the address shown on

all tangible personal property that is purchased at retail

the form.

and brought into Alabama for storage, use, or con-

sumption unless it is specifically exempted by law.

When is the tax due?

What Is The Tax Rate?

The tax is due on the first of the month following

Automotive Rate – 2%

the month in which the merchandise is purchased. A

If you purchased an automotive vehicle from out-

return should be completed for each month in which

side the state and did not pay the casual sales and use

merchandise is purchased. The tax is considered delin-

tax when you purchased your tag or if no tag is

quent after the 20th of the succeeding month.

required for the vehicle, you owe use tax at the rate of

Example: Purchases made in January – the tax is due

2% of the purchase price. Examples of items not requir-

on February 1 and delinquent after February 20.

ing tags which qualify as automotive vehicles include

Where can I get help or additional forms?

off-road motorcycles, ATVs, and self-propelled con-

The Alabama Department of Revenue has Taxpayer

struction equipment.

Service Centers conveniently located throughout the

Agriculture Rate – 1-1/2%

state. (See list on back.) If one of these locations is not

Equipment and its replacement parts used in con-

convenient, call the Sales, Use & Business Tax Division

nection with the production of agricultural products,

at (334) 242-1490 or write to the following address:

livestock, or poultry on farms are subject to tax at the

Alabama Department of Revenue

rate of 1-1/2%.

Sales, Use & Business Tax Division

Machine Rate – 1-1/2%

P. O. Box 327710

Machines and the parts for machines used in min-

Montgomery, AL 36132-7710

ing, quarrying, compounding, processing and manu-

facturing tangible personal property are taxed at the

You may also download instructions from our Web

rate of 1-1/2%.

site at

Consumers Use Tax Return Form - Alabama Department Of Revenue Page 4

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