Ala. Admin. Code r. 810-6-3-.42.02 - Nonresidents, Sales To
(1)
Other than the exceptions noted in (2) and (3) below, sales to nonresidents are
sales at retail subject to the tax even though such purchasers claim that the
property purchased is for use outside of Alabama, except where the seller
delivers the property outside Alabama or to the U.S. Postal Service or to a
common carrier for transportation outside Alabama. (Sections
40-23-1(a)(5),
40-23-4(a)(17)
and
40-23-62(2)
)
(2) Sales of automobiles,
motorcycles, trucks, truck trailers, or semitrailers that (1) will be
registered or titled outside Alabama and (ii) are exported or removed from
Alabama within 72 hours by the purchaser or the purchaser's agent for first use
outside Alabama are not subject to Alabama sales tax when the sales tax laws of
the state in which the purchaser will title or register the vehicle allows an
Alabama resident to purchase a motor vehicle for first titling and registering
in Alabama without the payment of tax to that state when the sales tax laws of
the state. To be exempt from Alabama sales tax, the information relative to the
exempt sale must be documented on forms approved by the Revenue Department.
(See Sales and Use Tax Rule
810-6-3-.42.03
entitled Sales of Certain Automotive Vehicles to Nonresidents for First Use and
Registration or Titling Outside Alabama.) Sales of other vehicles such as
mobile homes, motor bikes, all terrain vehicles, motor homes, travel trailers,
and boats do not qualify for this export exemption provision and are subject to
Alabama sales tax unless the seller can provide factual evidence that the
vehicle was delivered outside Alabama or delivered to a common carrier for
transportation outside Alabama. (Section
40-23-2(4)
)
(3) The purchase of a new truck
with a gross weight not exceeding 8,000 pounds or a new passenger vehicle by a
nonresident of the United States is exempt from sales or use tax when (i) the
truck or passenger vehicle is manufactured in Alabama, (ii) the truck or
passenger vehicle is delivered to the purchaser in Alabama by the manufacturer
or an affiliated corporation, (iii) at the time of the purchase the purchaser
intends to export the truck or passenger vehicle to and permanently license the
truck or passenger vehicle in a foreign country within 90 days after the date
of delivery, and (iv) the purchaser obtains a temporary metal license plate and
a temporary registration certificate from the probate judge or license
commissioner of the county in which the manufacturer is located.
(4) Effective January 1, 2016, sales of
automobiles, motorcycles, trucks, truck trailers, or semitrailers that (i) will
be registered or titled outside Alabama and (ii) are exported or removed from
Alabama within 72 hours by the purchaser or the purchaser's agent for first use
outside Alabama are subject to the Alabama state sales tax rate of two percent
(2%) unless the sales tax laws of the state in which the purchaser will title
or register the vehicle allows an Alabama resident to purchase a motor vehicle
for first titling and registering in Alabama without the payment of tax to that
state. However, in no case shall the amount of Alabama state sales tax due on a
motor vehicle that will be registered or titled for use in another state exceed
the amount of sales tax that would otherwise have been due in the state where
the vehicle will be registered or titled for first use.
(a) The tax collected on sales outlined in
paragraph (4) above shall be Alabama sales tax and shall exclude county and
municipal sales tax.
(5)
A list of states that do not allow a reciprocal drive-out provision for Alabama
residents purchasing automotive vehicles for first titling and registration in
Alabama may be viewed on the Department's website at:
http://www.revenue.alabama.gov/salestax/.
Such list will be published by December 1, 2015, and will be updated each
December 1 thereafter. Sellers that have relied on list information that is
later determined to be incorrect shall not be held liable for the
non-collection of the state automotive sales tax.
Notes
Author: Ginger Buchanan
Statutory Authority: Code of Ala. 1975, §§ 40-2A-7(a)(5), 40-23-2(4), 40-23-31, 40-23-39(b), Act 2015-503.
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