Ala. Admin. Code r. 810-6-4-.03 - Discounts Allowed On Payments Of Sales Tax Made Before Delinquency

(1) Allowed Discount.

(a) The department is authorized to allow a sales tax discount for sales taxes due and payable to the state by persons licensed under § 40-23-6, Code of Ala. 1975.

(b) The allowed discount cannot exceed a maximum amount of four hundred dollars ($400), and is calculated as follows:

1. Five percent of the first one hundred dollars ($100) of sales taxes levied.

2. Two percent of the sales taxes levied over one hundred dollars ($100) per period.

(c) Each licensee is allowed a maximum discount of four hundred dollars ($400), regardless of the number of retail locations within the state.

(d) No discount is authorized or allowed upon any taxes which are not paid before delinquency.

(2) Discount Based on Filing Frequency. Section 40-23-7(d), Code of Ala. 1975, allows certain taxpayers to file Sales Tax returns with the department on a calendar quarter, calendar semi-annual, or calendar year basis rather than on a monthly basis. The sales tax discount for licensees who file monthly, quarterly, semi-annually, or annually must not exceed the allowed discount as provided in paragraph (1) per calendar quarter, per calendar semi-annual, or per calendar year, respectively.

(3) Application of Discount. The allowed discount outlined in paragraphs (1) and (2) applies to all state, county, and municipal sales taxes administered by the department. The rate, maximum, and effective date of the discount for each state administered county and municipal sales tax due and payable to the department must be calculated in the same manner as the discount for the state sales tax.

Notes

Ala. Admin. Code r. 810-6-4-.03

Repealed and Replaced: Filed September 3, 1996; effective October 8, 1996. Amended: Filed September 15, 1998; effective October 20, 1998. Amended: Filed August 30, 2001; effective October 4, 2001. Amended by Alabama Administrative Monthly Volume XL, Issue No. 03, December 30, 2021, eff. 2/13/2022.

Author: Lee Ann Rouse

Statutory Authority: Code of Ala. 1975, §§ 11-3-11.3, 11-51-180, et seq., 11-51-200, et seq., 40-2A-7(a)(5), 40-12-4, et seq., 40-23-6, 40-23-7(d), 40-23-31, 40-23-36, 40-23-83.