Ala. Admin. Code r. 810-6-5-.03 - Contractors Gross Receipts Tax
(1)
Code of Ala.
1975, Section
40-23-50,
levies a privilege or license tax upon every person, firm, or corporation
engaged, or continuing within this state in the business of contracting to
construct, reconstruct, or build any public highway, road, bridge, or street,
an amount equal to 5 percent of the gross receipts of any such
business.
(2) The term
"reconstruct" as used in this rule means to construct again or repair an
existing public highway, road, bridge, street, or tunnel.
(3) The contractors gross receipts tax
referenced in
(1) above applies to any
contract between a contractor or contract assignee and the State of Alabama or
between a contractor and any city, town, or county if the State of Alabama is a
joint party with the city, town, or county to construct, reconstruct, or build
any public highway, road, bridge, street, or tunnel and includes but is not
limited to contracts for:
(a)
Earthwork,
(b) Bases,
(c) Surfacing,
(d) Pavements,
(e) Structures,
(f) Incidentals, which become a part of the
highway, road, bridge, street, or tunnel, structure footings, and
(g) Traffic control devices,
(h) Highway lighting,
(i) Materials,
(j) Bridge scouring and painting,
(k) Installation or repair of overhead signs
and/or
(l) Sign
rehabilitation.
(4) The contractors gross receipts tax
referenced in (1) above applies to all payment made to a contractor or contract
assignee by the State of Alabama whether the payments are made pursuant to a
contract, purchase order, supplemental agreement, change request or other
arrangement to construct, reconstruct, or build any public highway, road,
bridge, street, or tunnel.
(5) The
contractors gross receipts tax referenced in (1) above does not apply to the
following:
(a) Contracts between a contractor
or contract assignee and the federal government,
(b) That portion of the gross receipts
received by the contractor or contract assignee constituting additional amounts
paid to the contractor or contract assignee under contractual escalation
provisions allowing for an increase in the contract price for escalations in
the cost of fuels, materials, and/or labor.
(c) Gross receipts received by a contractor
or contract assignee from contracts with the State of Alabama to construct,
reconstruct, or build rest areas or welcome stations.
(d) Contracts between a contractor or
contract assignee and any city, town, or county when the State of Alabama is
not a party to the contract, and
(e) Contracts that do not include or require
the construction, reconstruction, or building of a public highway, road,
bridge, street, or tunnel. (Misener Marine Construction, Inc. V. Eagerton, 423
So. 2d 161 (1982))
(6)
The contractors gross receipts tax shall be due and payable in monthly
installments on or before the twentieth day of the month next succeeding the
month in which a payment subject to this tax is received by the contractor or
contract assignee. Every person, firm, or corporation on whom the tax is levied
shall prepare and forward to the Department of Revenue within the time fixed
and prescribed by law, a contractors gross receipts tax return for each
calendar month and shall compute the tax due and shall pay to the Department of
Revenue the amount of tax shown to be due. Contractors gross receipts tax
returns shall require the following information:
(a) Taxpayer's contractors gross receipts tax
account number and legal name,
(b)
Period covered by the return and due date of the return,
(c) A project schedule showing each taxable
project number for which a payment was received by the taxpayer from the
Alabama Transportation Department, the total amounts of the payments received
on each taxable project, any escalation payments included in the gross amounts
received, and the taxable amount received for each taxable project,
(d) Total taxable receipts from all
contracts, purchase orders, supplemental agreements, and change
requests,
(e) Gross tax on total
taxable receipts,
(f) Applicable
discount for prompt payment,
(g)
Penalties and interest due, if applicable,
(h) Credits claimed, if any,
(i) Total amount due, and
(j) Total amount remitted.
Author: Ginger Buchanan
Notes
Statutory Authority: Code of Ala. 1975, §§ 40-23-31, 40-23-50, as amended.
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