For the purposes of this article, the following terms have the following meanings:
(1) CLINICAL PRECEPTORSHIP. A clinical educational or training rotation for a student in any of the following programs that are physically located in this state and approved by and provided through a qualified health professions training program, for which the community-based faculty preceptor, also physically located in this state, is otherwise not compensated for the preceptorship:
a. A medical allopathic or osteopathic program.
b. A dental program.
c. An optometric program.
d. A physician assistant program.
e. An anesthesia assistant program.
f. A certified registered nurse practitioner program.
g. A certified nurse midwife program.
h. A certified registered nurse anesthetist program.
(2) COMMUNITY-BASED ADVANCE PRACTICE NURSE PRECEPTOR. A certified registered advance practice nurse licensed under Chapter 21 of Title 34 who provides medical services in a health care facility that is physically located in this state and not owned or operated by a qualified nursing, medical, or osteopathic school and who, through an agreement with a qualified nursing school physically located in this state, provides one or more clinical preceptorships for training to students in a certified registered nurse practitioner, certified nurse midwife, or certified registered nurse anesthetist program for which he or she receives no monetary compensation.
(3) COMMUNITY-BASED ASSISTANT TO PHYSICIAN PRECEPTOR. An assistant to physician licensed under Chapter 24 of Title 34, and practicing pursuant to a registration agreement with a licensed physician, who provides medical services in a health care facility that is physically located in this state and not owned or operated by a qualified medical, nursing, or osteopathic school and who, through an agreement with a qualified health professions program physically located in this state, provides one or more clinical preceptorships for students in a physician assistant or anesthesia assistant program for which he or she receives no monetary compensation.
(4) COMMUNITY-BASED FACULTY PRECEPTOR. A community-based advance practice nurse preceptor; community-based assistant to physician preceptor; or community-based physician, dentist, or optometrist preceptor.
(5) COMMUNITY-BASED PHYSICIAN, DENTIST, OR OPTOMETRIST PRECEPTOR. A physician licensed under Chapter 24 of Title 34; a dentist licensed under Chapter 9 of Title 34; or an optometrist licensed under Chapter 22 of Title 34, who provides medical services in a health care facility that is physically located in this state and not owned or operated by a qualified medical, dental, optometric, nursing, or osteopathic school and who, through an agreement with a qualified medical school physically located in this state, provides one or more clinical preceptorships for students in a medical program, dental program, optometric program, physician assistant program, anesthesia assistant program, or certified registered nurse practitioner, certified nurse midwife, or certified registered nurse anesthetist program for which he or she receives no monetary compensation.
(6) MEDICALLY UNDERSERVED RURAL AREA. A primary care service area with a deficit, or surplus of less than 2.0 of primary-care physicians, as shown by the most-recent Status Report of the Alabama Primary Care Physician Workforce from the Office for Family Health, Education and Research at the UAB Huntsville Regional Medical Campus.
(7) PROGRAM. The Preceptor Tax Incentive Program.
(8) QUALIFIED HEALTH PROFESSIONS TRAINING PROGRAM. An institution of higher education that is physically located in this state and has an accredited educational program for medicine, dentistry, optometry, physician assistants, anesthesia assistants, or certified registered nurse practitioners, certified nurse midwives, or certified registered nurse anesthetists.
","history":"(Act 2023-519, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38662,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37832,"codeId":58799,"versionId":50758,"parentId":58796,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-18-522","shortTitle":"Section 40-18-522","catchLine":"(Repealed by Act 2023-519, § 8, Effective September 29, 2031) Administration of Program by Alabama Statewide Area Health Education Centers Program Office.","title":"Section 40-18-522 (Repealed by Act 2023-519, § 8, Effective September 29, 2031) Administration of Program by Alabama Statewide Area Health Education Centers Program Office.","sectionRange":null,"content":"(a)(1)The Alabama Statewide Area Health Education Centers Program Office shall administer the program and certify clinical preceptorships on behalf of all eligible qualified health professions training programs.
(2) A clinical preceptorship may not be certified as eligible under the program unless the clinical preceptorship is performed in a medically underserved rural area.
(b)(1) Prior to the certification of any clinical preceptorship, the Alabama Statewide Area Health Education Centers Program Office shall conduct a needs assessment of the current number and current need for community-based faculty preceptors in the state and submit a final report of the assessment to the Governor, Speaker of the House of Representatives, President Pro-Tempore of the Senate, the Chairs of the Senate Healthcare and House Health Committees, and the Chairs of the Senate Committee on Finance and Taxation Education and the House Ways and Means Education Committees.
(2) The Alabama Statewide Area Health Education Center Program Office shall consult with the Alabama Commission on the Evaluation of Services to develop the appropriate measures and methodology for conducting the needs assessment.
","history":"(Act 2023-519, §3.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38663,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37833,"codeId":58800,"versionId":50759,"parentId":58796,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-18-523","shortTitle":"Section 40-18-523","catchLine":"(Repealed by Act 2023-519, § 8, Effective September 29, 2031) Tax Credit for Community-Based Faculty Preceptors.","title":"Section 40-18-523 (Repealed by Act 2023-519, § 8, Effective September 29, 2031) Tax Credit for Community-Based Faculty Preceptors.","sectionRange":null,"content":"(a)(1) Beginning with the 2024 tax year, a community-based faculty preceptor, if he or she conducts a clinical preceptorship, shall be allowed a credit against the tax imposed by Section 40-18-2, in the following amounts:
a. A community-based physician, dentist, or optometrist preceptor shall be allowed a credit of five hundred dollars ($500) per rotation, up to an annual maximum of six thousand dollars ($6,000).
b. A community-based assistant to physician preceptor shall be allowed a credit of four hundred twenty-five dollars ($425) per rotation, up to an annual maximum of five thousand one hundred dollars ($5,100).
c. A community-based advance practice nurse preceptor shall be allowed a credit of four hundred twenty-five dollars ($425) per rotation, up to an annual maximum of five thousand one hundred dollars ($5,100).
(2) An individual may not accrue more than 12 clinical preceptorships in any combination of the categories described in subdivision (1) in one calendar year.
(b) A community-based faculty preceptor may not earn hours credited toward the tax credit pursuant to subsection (a) unless the clinical preceptorship has been certified by the Alabama Statewide Area Health Education Centers Program Office as eligible for the credit.
(c)(1) To receive the credit provided by this article, a community-based faculty preceptor shall claim the credit on his or her state income tax return for the tax year in which he or she completed the clinical preceptorship rotation; shall certify that he or she, and the health care center or facility through which he or she is employed, did not receive monetary payment during the tax year from any source for the training of medical, optometry, dental, physician assistant, anesthesia assistant, or certified registered nurse practitioner, certified nurse midwife, and certified registered nurse anesthetist students; and shall submit supporting documentation, including certification obtained from the Alabama Statewide Area Health Education Centers Program Office, to the Department of Revenue.
(2) Failure to provide the required documents shall result in the automatic denial of the credit.
(d) In no event shall the total amount of the tax credit provided by this section for a taxable year exceed the income tax liability of the taxpayer. No tax credit shall be allowed the taxpayer against his or her tax liability for prior or succeeding years.
(e) Adjudication of possible filing errors or violations of this article shall be determined by the Department of Revenue.
","history":"(Act 2023-519, §4.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38664,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37834,"codeId":58801,"versionId":50760,"parentId":58796,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-18-524","shortTitle":"Section 40-18-524","catchLine":"(Repealed by Act 2023-519, § 8, Effective September 29, 2031) Issuance of Credit Certificate; Annual Informational Report.","title":"Section 40-18-524 (Repealed by Act 2023-519, § 8, Effective September 29, 2031) Issuance of Credit Certificate; Annual Informational Report.","sectionRange":null,"content":"The Alabama Statewide Area Health Education Centers Program Office shall do both of the following:
(1) Issue to an eligible taxpayer a credit certificate to indicate the number of approved preceptor rotations and other information required by the Department of Revenue to certify the credit being claimed.
(2) Submit an annual informational report to the Department of Revenue by January 31 annually, which provides all taxpayer issued certificates with information required by the Department of Revenue for credit verification.
","history":"(Act 2023-519, §5.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38665,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37835,"codeId":58802,"versionId":50761,"parentId":58796,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-18-525","shortTitle":"Section 40-18-525","catchLine":"(Repealed by Act 2023-519, § 8, Effective September 29, 2031) Annual Report on Program Accomplishments.","title":"Section 40-18-525 (Repealed by Act 2023-519, § 8, Effective September 29, 2031) Annual Report on Program Accomplishments.","sectionRange":null,"content":"(a) Annually, on or before the first day of December, the Alabama Statewide Area Health Education Centers Program Office shall report on the condition, performance, and accomplishments of the program to the Governor, Speaker of the House of Representatives, President Pro-Tempore of the Senate, the Chairs of the Senate Healthcare and House Health Committees, and the Chairs of the Senate Committee on Finance and Taxation Education and the House Ways and Means Education Committees.
(b) The Alabama Statewide Area Health Education Center Program Office shall consult with the Alabama Commission on the Evaluation of Services to develop performance metrics and other measures of success to include in the annual report required pursuant to subsection (a). During the 2030 fiscal year, the program shall undergo an evaluation by the Alabama Commission on the Evaluation of Services to determine whether the program is impacting the determined measures of success.
","history":"(Act 2023-519, §6.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38666,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37836,"codeId":58803,"versionId":50762,"parentId":58796,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-18-526","shortTitle":"Section 40-18-526","catchLine":"(Repealed by Act 2023-519, § 8, Effective September 29, 2031) Rulemaking Authority.","title":"Section 40-18-526 (Repealed by Act 2023-519, § 8, Effective September 29, 2031) Rulemaking Authority.","sectionRange":null,"content":"The Department of Revenue may adopt rules for the implementation and administration of this article.","history":"(Act 2023-519, §7.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38667,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37837,"codeId":58804,"versionId":50763,"parentId":58796,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-18-527","shortTitle":"Section 40-18-527","catchLine":"(Repealed by Act 2023-519, § 8, Effective September 29, 2031) Repeal of Article.","title":"Section 40-18-527 (Repealed by Act 2023-519, § 8, Effective September 29, 2031) Repeal of Article.","sectionRange":null,"content":"This article shall be repealed on September 29, 2031, unless extended by act of the Legislature.For the purposes of this article, the following terms have the following meanings:
(1) ALABAMA TAX LIABILITY. The taxes otherwise due under Sections 27-3-29, 27-4A-3, 40-16-4, or 40-18-2.
(2) AUTHORITY. The Alabama Housing Finance Authority or its successor authority or agency.
(3) AWARD. The issuance by the authority of either of the following:
a. A reservation letter pursuant to the qualified allocation plan.
b. A determination letter for workforce housing tax credits to a qualified project during an award cycle, the amount of which award shall be claimed in each year of the credit period.
(4) AWARD CYCLE. Each fiscal year or other 12-month period designated by the authority over which the authority awards workforce housing tax credits to qualified projects.
(5) AWARD CYCLE CAP. The sum of all of the following:
a. Five million dollars ($5,000,000) for each year of the 10-year credit period as defined in 26 U.S.C. § 42(f)(1). Any funds not awarded may be carried forward to the next award cycle.
b. The amount, if any, by which the award cycle cap prescribed by this article for the preceding award cycle exceeds the workforce housing tax credits awarded by the authority in that award cycle.
c. The amount of workforce housing tax credits recaptured or otherwise disallowed under Section 40-18-533(e) in the preceding fiscal year.
(6) CREDIT PERIOD. The 10-year credit period as defined in 26 U.S.C. § 42(f)(1), subject to the special rule for the first year of the credit period as set forth in 26 U.S.C. § 42(f)(2).
(7) DEPARTMENT. The Alabama Department of Revenue, or its successor agency.
(8) ELIGIBILITY CERTIFICATE. A certificate issued by the authority to the owner of a qualified project certifying that the project is a qualified project that qualifies for the workforce housing tax credit authorized by this article and specifying the annual amount of workforce housing tax credits that may be claimed in each year of the credit period. The authority shall issue an eligibility certificate to a qualified project upon the authority’s approval of a final cost certification that complies with the authority’s requirements.
(9) FEDERAL LOW-INCOME HOUSING TAX CREDIT or FEDERAL TAX CREDIT. The federal tax credit as provided in 26 U.S.C. § 42.
(10) FOUR PERCENT QUALIFIED PROJECT. A qualified project that is eligible for federal low-income housing tax credits pursuant to 26 U.S.C. § 42(h)(4).
(11) MULTIFAMILY HOUSING REVENUE BOND POLICY. The authority’s policy, as amended from time to time, regarding the allocation of tax-exempt bond volume cap for affordable multifamily housing.
(12) QUALIFIED ALLOCATION PLAN. As defined in 26 U.S.C. § 42(m)(1)(B), subject to additions and modifications necessary to implement this article.
(13) QUALIFIED PROJECT. A qualified low-income building, as defined in 26 U.S.C. § 42(c)(2), that is located in the state, is eligible for the federal low-income housing tax credit, and is placed in service on or after January 1, 2025.
(14) QUALIFIED TAXPAYER. A taxpayer owning an interest, directly or indirectly, through one or more pass-through entities, in a qualified project at any time prior to filing a tax return claiming a workforce housing tax credit.
(15) TAXPAYER. An individual, corporation, S corporation, partnership, limited partnership, limited liability partnership, limited liability company, joint venture, financial institution, fiduciary of an estate of a trust, or insurer.
(16) WORKFORCE HOUSING TAX CREDIT or TAX CREDIT. The tax credit created by this article.
","history":"(Act 2024-302, §3.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38672,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37842,"codeId":60111,"versionId":52214,"parentId":60107,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-18-533","shortTitle":"Section 40-18-533","catchLine":"Applications and Awards; Allocation; Nonrefundability; Recapture.","title":"Section 40-18-533 Applications and Awards; Allocation; Nonrefundability; Recapture.","sectionRange":null,"content":"(a)(1) For applications for federal tax credits submitted to the authority on and after January 1, 2025, the authority, upon approving a federal low-income housing tax credit for a qualified project pursuant to the authority’s qualified allocation plan or multifamily housing revenue bond policy, may award a workforce housing tax credit under this article to the owner of the qualified project so long as doing so will not result in exceeding the award cycle cap prescribed by this subsection. The workforce housing tax credit shall be in an amount determined by the authority to be necessary for the financial feasibility of the qualified project and consistent with the qualified allocation plan and multifamily housing revenue bond policy, as applicable, but the annual award for each qualified project shall not be greater than two million dollars ($2,000,000).
(2) The authority shall send written notice of the award to the owner of the qualified project. The award notice shall state the amount of workforce housing tax credit awarded for each year of the qualified project’s credit period and stipulate that receipt of the tax credit is contingent upon issuance of an eligibility certificate.
(3) Upon issuance of an eligibility certificate, a copy of which shall be provided to the department and the Alabama Department of Insurance, a workforce housing tax credit shall be allowed for the qualified project for each year of the credit period in the amount specified in the eligibility certificate.
(4) The total amount of tax credit awards made by the authority under this article in each award cycle shall not exceed the award cycle cap.
(b)(1) The tax credit may be allocated by pass-through entities to some or all of its partners, members, or shareholders, including any not-for-profit entity that is a partner, member, or shareholder, in any manner agreed to by such persons, regardless of whether or not the person is allocated or allowed any portion of any federal low-income housing tax credit with respect to the qualified project, whether the allocation of the tax credit under the terms of the agreement has substantial economic effect within the meaning of 26 U.S.C. § 704(b), and whether the person is deemed a partner for federal income tax purposes as long as the partner or member would be considered a partner or member under applicable state law governing such entity, and has been admitted as a partner or member on or prior to the date for filing the qualified taxpayer’s tax return, including any amendments thereto, with respect to the year of the tax credit. Such pass-through entities or qualified taxpayer may assign all or any part of its interest, including its interest in the tax credits, to one or more pass-through entities or qualified taxpayers, and the qualified taxpayer shall be able to claim the tax credit so long as its interest is acquired prior to the filing of its tax return claiming the tax credit.
(2) If the tax credit is used to offset the financial institution excise tax, the offset shall be limited to the state portion of the financial institution excise tax.
(c) The workforce housing tax credit authorized by this article shall not be refundable. Any tax credit not used in a taxable year may be carried forward by a qualified taxpayer for the succeeding five years.
(d) Prior to filing the tax return, or in the case of pass-through entities, prior to passing the credit to the qualified taxpayer, a project owner that has been awarded a workforce housing tax credit shall submit a copy of the eligibility certificate to the department in a manner prescribed by the department.
(e) If under 26 U.S.C. § 42, a portion of any federal low-income housing credits taken on a qualified project is required to be recaptured or is otherwise disallowed during the credit period, the qualified taxpayer claiming workforce housing tax credits with respect to the qualified project shall also be required to recapture a portion of any tax credits authorized by this article. The percentage of workforce housing tax credits subject to recapture shall be equal to the percentage of federal low-income housing credits subject to recapture or otherwise disallowed during such period. Any tax credits recaptured or disallowed shall increase the income tax liability of the qualified taxpayer who claimed the tax credits in a like amount and shall be included on the tax return of the qualified taxpayer submitted for the taxable year in which the recapture or disallowance event is identified. The owner of the qualified project shall report any recapture event to the department, the Department of Insurance, the authority, and, in the same manner done for the recapture of federal low-income housing credits, the qualified taxpayer, if the project owner is not the qualified taxpayer.
(f) For each award cycle, the authority shall award at least 20 percent, but not more than 25 percent, of the award cycle cap to qualified projects located in areas designated as rural by the authority, subject to viable requests being received. The authority shall award the balance of the remaining available award cycle cap to four percent qualified projects without any geographic limitation.
(g) An insurance company claiming a workforce housing tax credit against the taxes, licenses, and other fees, fines, and penalties imposed, including any retaliatory tax imposed on insurance companies by Section 27-3-29, shall not be required to pay any additional tax as a result of claiming the tax credit. The workforce housing tax credit may fully offset any retaliatory tax imposed by the Code of Alabama 1975. A reduction in the taxes of a foreign insurance company to the extent obtained through a claim for credit under this article does not increase the retaliatory tax liability otherwise charged against that company.
","history":"(Act 2024-302, §4.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38673,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37843,"codeId":60112,"versionId":52215,"parentId":60107,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-18-534","shortTitle":"Section 40-18-534","catchLine":"Administration of Workforce Housing Tax Credit Program.","title":"Section 40-18-534 Administration of Workforce Housing Tax Credit Program.","sectionRange":null,"content":"The authority shall administer the workforce housing tax credit program and shall adopt the guidelines and qualified allocation plans necessary to implement and administer this article consistent with federal law provided in 26 U.S.C. § 42. The qualified allocation plan shall provide a preference for applications in which there is a commitment for: (i) a furnished children’s activity center which will be made available at no cost to a licensed, qualified, and insured childcare provider for after-school care for children in grades K through 8 residing at the qualified project during ordinary school days from 2:30 p.m. to 6:00 p.m.; or (ii) the qualified project owner shall subsidize the cost of after-school care for children grades K through 8 residing at the qualified project for at least three years from the placed in service date, by the lesser of one thousand dollars ($1,000) per year per unit occupied by a student participating in the after-school program or fifty thousand dollars ($50,000) per annum. The authority shall permit reserves to be established from project sources to fund such subsidy costs. The workforce housing tax credit authorized by this article shall not be available to taxpayers that submit an application for federal low-income housing tax credits for a qualified project after September 30, 2027. No action or inaction on the part of the Legislature shall reduce or suspend the tax credits authorized by this article in any past or future calendar year with respect to a qualified project if the application to the authority was substantially complete on or prior to September 30, 2027, even if the award is made after such date, the qualified project is placed in service after September 30, 2027, or the first workforce housing credits are available to the qualified taxpayer after September 30, 2027.
","history":"(Act 2024-302, §5.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38674,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37844,"codeId":60113,"versionId":52216,"parentId":60107,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-18-535","shortTitle":"Section 40-18-535","catchLine":"Timing; Reporting Requirements; Rulemaking Authority.","title":"Section 40-18-535 Timing; Reporting Requirements; Rulemaking Authority.","sectionRange":null,"content":"(a) The tax credit created pursuant to this article may only be claimed with respect to taxable years beginning on or after January 1, 2025. The tax credit provided in this article shall be subject to the reporting requirements of Section 40-1-50.
(b) The department and the Alabama Department of Insurance may adopt rules for the administration of this article.
","history":"(Act 2024-302, §6.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38675,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37845,"codeId":60183,"versionId":null,"parentId":16685,"effectiveDate":null,"supersessionDate":null,"type":"Article","displayId":"28","shortTitle":"Article 28","catchLine":"Child Care and Workforce Development.","title":"Article 28 Child Care and Workforce Development.","sectionRange":"§40-18-540 to §40-18-546","content":null,"history":null,"numChildren":7,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":38676,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37846,"codeId":60184,"versionId":52273,"parentId":60183,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-18-540","shortTitle":"Section 40-18-540","catchLine":"Legislative Findings.","title":"Section 40-18-540 Legislative Findings.","sectionRange":null,"content":"The Legislature hereby makes the following findings of fact and declares its intent to be as follows: Alabama is currently attracting and creating jobs and business investments at a record-setting pace. Despite historically low unemployment rates, Alabama’s workforce participation rate ranked among the lowest in the country. One possible barrier to entering the workforce for some Alabamians is a lack of available, affordable, high-quality child care. Furthermore, the grant, and any appropriations by the Legislature in furtherance thereof, serves a public purpose by conferring a direct public benefit of a reasonably general character through the promotion of public health, safety, morals, security, prosperity, contentment, and the general welfare of the community. The grant achieves this public purpose by increasing the quality of child care to the general public, which has the effect of encouraging high-quality care and education for children and facilitating greater workforce participation throughout the state. It is the intent of the Legislature, by the passage of this article, to encourage more Alabamians to enter the workforce and gain employment by improving the quality and availability of child care options for working parents. Accordingly, future efforts to extend or reauthorize this article should be preceded by consideration of the effectiveness of this article in achieving these policy goals. To this end, once this article has had a sufficient opportunity to be implemented and its effects measured, but before extending or reauthorizing this article, the Legislature should request and examine reports from: (i) the Alabama Department of Revenue, to determine the usage of the tax credits; and (ii) the Alabama Department of Labor and the Alabama Department of Commerce, to determine the impact of the tax credits on workforce participation.","history":"(Act 2024-303, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38677,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37847,"codeId":60185,"versionId":52274,"parentId":60183,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-18-541","shortTitle":"Section 40-18-541","catchLine":"Definitions.","title":"Section 40-18-541 Definitions.","sectionRange":null,"content":"For the purposes of this article, the following terms have the following meanings:
(1) APPLICABLE TAXES. An employer’s, taxpayer’s, or child care provider’s, or in the case of a pass-through entity that is an employer, taxpayer, or child care provider, such employer’s, taxpayer’s, or child care provider’s owners’ taxes as follows:
a. Taxes levied in Chapter 18 of Title 40.
b. The state portion of taxes levied in Chapter 16 of Title 40.
c. Taxes levied in Section 27-4A-3(a).
d. Taxes levied in Article 2 of Chapter 21 of Title 40, not to include the freight line and equipment tax levied in Section 40-21-52.
(2) CHILD or CHILDREN. Individuals who are five years of age or less.
(3) CHILD CARE FACILITY. A facility meeting the definition found in Section 38-7-2(7), which is licensed by the Department of Human Resources and is participating in the quality rating and improvement system.
(4) CHILD CARE PROVIDER. An Alabama taxpayer that owns a child care facility or a nonprofit entity that owns and operates a child care facility in this state.
(5) ELIGIBLE CHILD or ELIGIBLE CHILDREN. Children who participate in the Child Care Subsidy Program administered by the Department of Human Resources and who attend a child care facility operated by a child care provider.
(6) ELIGIBLE EXPENSES. a. Expenses incurred by an employer for:
1. The construction, renovation, expansion, or repair of a child care facility, or for the purchase of equipment for such facility, or for the maintenance and operation thereof.
2. Payments made to child care facilities or employees for the provision of child care at child care facilities for children of employees.
3. Payments made to child care facilities to reserve services for children of employees.
b. For purposes of this definition, “child care facility” or “child care facilities” shall also include a facility meeting the definition found in Section 38-7-2(7), which is operated, directly or indirectly, by a public institution of higher education as defined in Section 16-5-1.
(7) EMPLOYEE. A resident of this state who works on a full-time or part-time basis for an employer. An employee shall include independent contractors engaged by an employer and the owners of an employer that also work for such employer on a full-time or part-time basis. Employees whose wages, excluding any overtime or bonuses, exceed eighty thousand dollars ($80,000) in a calendar year are not employees for the purposes of this article.
(8) EMPLOYER. A for-profit business lawfully operating in this state.
(9) EMPLOYER TAX CREDIT. A tax credit to be applied against applicable taxes for the year in which the eligible expenses are incurred by an employer, equal to the total eligible expenses incurred by the employer, up to six hundred thousand dollars ($600,000) per year for each employer.
(10) FACILITY TAX CREDIT. A tax credit to be applied against applicable taxes, calculated in accordance with Section 40-18-543(a), but not exceeding twenty-five thousand dollars ($25,000) per year for each child care facility.
(11) GRANT. A grant awarded by the Department of Human Resources to nonprofit child care providers for the purpose of funding expenses related to the construction, expansion, improvement, repair, or operation of a child care facility or child care facilities, so long as such expenses are made in furtherance of the child care services offered at such child care facility and result in increased quality of care or increased capacity for children at each applicable child care facility.
(12) OWNER. A shareholder, partner, or member of a pass-through entity.
(13) PASS-THROUGH ENTITY. An Alabama S corporation or a subchapter K entity.
(14) QUALITY RATING. The rating applicable to a child care facility under the quality rating and improvement system.
(15) QUALITY RATING AND IMPROVEMENT SYSTEM. A system of the Department of Human Resources known as the Alabama Quality STARS program that measures the quality of child care facilities on a scale of one to five stars, with five stars denoting the highest level of quality.
(16) RURAL AREA. Any Alabama county that meets the definition of “targeted county” found in Section 40-18-376.1(a)(2).
(17) SMALL BUSINESS. An employer that has fewer than 25 employees.
(18) STATE. The State of Alabama.
","history":"(Act 2024-303, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38678,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37848,"codeId":60186,"versionId":52275,"parentId":60183,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-18-542","shortTitle":"Section 40-18-542","catchLine":"Application for Employee Tax Credit; Documentation Requirements.","title":"Section 40-18-542 Application for Employee Tax Credit; Documentation Requirements.","sectionRange":null,"content":"(a) Effective for tax years beginning on or after January 1, 2025, and ending December 31, 2027, unless extended by an act of the Legislature, an employer may apply to the Department of Revenue for an employer tax credit to be applied against applicable taxes. The employer tax credit shall be in an amount equal to 75 percent of the eligible expenses incurred by an employer; except, in the case of a small business, the employer tax credit shall be in an amount equal to 100 percent of the eligible expenses incurred by an employer.
(b) For the calendar year ending December 31, 2025, the employer tax credit is limited to an aggregate amount for all employers of fifteen million dollars ($15,000,000), which amount shall increase to seventeen million five hundred thousand dollars ($17,500,000) for the calendar year ending December 31, 2026; and twenty million dollars ($20,000,000) for the calendar year ending December 31, 2027.
(c) The Department of Revenue shall:
(1) Provide a standardized format for, and require completion of, a certificate to be signed by the employer applying for the employer tax credit certifying that the expenses incurred by the employer were eligible expenses incurred to support the provision of child care at child care facilities for the children of employees.
(2) Require the employer to provide documentation to substantiate to the satisfaction of the Department of Revenue the amount of the employer tax credit applied for pursuant to this section and that the expenses incurred by the employer were eligible expenses incurred to support the provision of child care at child care facilities for the children of employees.
(3) If the employer is a pass-through entity, require that the employer identify the identity and pro rata percentage ownership of its owners.
(d) The Department of Revenue shall award the tax credit to the employer after the employer provides the documentation required in subsection (c). Failure to provide the documentation required in subsection (c) shall result in the automatic denial of the employer tax credit.
","history":"(Act 2024-303, §3.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38679,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37849,"codeId":60187,"versionId":52276,"parentId":60183,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-18-543","shortTitle":"Section 40-18-543","catchLine":"Application for Child Care Provider Facility Tax Credit; Documentation Requirements.","title":"Section 40-18-543 Application for Child Care Provider Facility Tax Credit; Documentation Requirements.","sectionRange":null,"content":"(a) Effective for tax years beginning on or after January 1, 2025, and ending December 31, 2027, unless extended by an act of the Legislature, a child care provider may apply to the Department of Revenue for a facility tax credit to be applied against applicable taxes, in an amount equal to the average monthly number of eligible children, multiplied by a dollar amount which shall be based upon the quality rating of the child care facility as follows:
(1) Five star quality rating - two thousand dollars ($2,000) per eligible child.
(2) Four star quality rating - one thousand seven hundred fifty dollars ($1,750) per eligible child.
(3) Three star quality rating - one thousand five hundred dollars ($1,500) per eligible child.
(4) Two star quality rating - one thousand two hundred fifty dollars ($1,250) per eligible child.
(5) One star quality rating - one thousand dollars ($1,000) per eligible child.
(b) The facility tax credit is limited to an aggregate amount for all child care providers of five million dollars ($5,000,000) in a calendar year.
(c) The Department of Revenue shall:
(1) Provide a standardized format for, and require completion of, a certificate to be completed and signed by the child care provider applying for the facility tax credit, certifying each child care provider’s ownership of applicable child care facilities, the quality rating of each facility, and the average number of eligible children attending each facility monthly.
(2) Require the child care provider to provide documentation to substantiate to the satisfaction of the Department of Revenue the amount of the facility tax credit applied for pursuant to this section, the quality rating of each applicable child care facility, and the average number of eligible children attending each facility monthly.
(3) If the child care provider is a pass-through entity, require that the child care provider identify the identity and pro rata percentage ownership of its owners.
(d) The Department of Revenue shall award the facility tax credit to a child care provider after the child care provider provides the documentation required in subsection (c). Failure to provide the documentation required in subsection (c) shall result in the automatic denial of the child care facility tax credit.
(e) The Department of Human Resources and the Department of Revenue shall enter into a Memorandum of Understanding as to the information necessary to permit the Department of Revenue to effectively administer this section.
","history":"(Act 2024-303, §4.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38680,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37850,"codeId":60188,"versionId":52277,"parentId":60183,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-18-544","shortTitle":"Section 40-18-544","catchLine":"Grants to Nonprofit Child Care Providers.","title":"Section 40-18-544 Grants to Nonprofit Child Care Providers.","sectionRange":null,"content":"(a) The Department of Human Resources may make grants to nonprofit child care providers as provided in this section.
(b) The Department of Human Resources may establish priorities, guidelines, standards, and processes by which grants may be awarded.
(c) The Department of Human Resources shall require interested nonprofit child care providers to complete applications on forms issued by the Department of Human Resources which shall include at least the following:
(1) Child care provider ID.
(2) Licensee’s name.
(3) License number.
(4) Verification of nonprofit status.
(5) A certification from the applicant nonprofit child care provider that will comply with any rules adopted by the Department of Human Resources related to the grant.
(d) Failure to provide the information required by the Department of Human Resources may result in the automatic denial of the grant.
(e) No nonprofit child care provider shall be eligible to receive more than fifty thousand dollars ($50,000) under this section during a single calendar year.
(f) The aggregate amount of funding approved pursuant to this section shall not exceed five million dollars ($5,000,000) in a calendar year.
(g) The amount and all terms and conditions of each grant shall be memorialized in a grant agreement between the Department of Human Resources and the nonprofit child care provider, which agreement shall include at least the following terms and conditions:
(1) The amount of the grant.
(2) The nonprofit child care provider will use the grant solely in accordance with this section.
(3) The nonprofit child care provider will comply with any rules adopted by the Department of Human Resources related to the grant.
(4) The requirement that the default of the nonprofit child care provider, under any provision of the grant agreement, shall result in the repayment of any grant monies paid to the nonprofit child care provider by the Department of Human Resources.
","history":"(Act 2024-303, §5.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38681,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37851,"codeId":60189,"versionId":52278,"parentId":60183,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-18-545","shortTitle":"Section 40-18-545","catchLine":"Rulemaking; Assignment of Credits; Refunds; Child Care Tax Credit Account.","title":"Section 40-18-545 Rulemaking; Assignment of Credits; Refunds; Child Care Tax Credit Account.","sectionRange":null,"content":"(a) The Department of Human Resources and the Department of Revenue shall adopt rules as necessary, on or before January 1, 2025, for the implementation and administration of this article. Such rules shall ensure that:
(a) All filings and applications made with the Department of Revenue in relation to the employer tax credit or the facility tax credit shall be made using forms adopted by the Department of Revenue. Such applications and filings shall be treated as tax returns, subject to penalties imposed by the Department of Revenue.
(b) All filings and applications made with the Department of Human Resources in relation to the nonprofit provider grant program shall be made using forms adopted by the Department of Human Resources.
(c) Nothing in this article shall be construed to constitute a guarantee or assumption by the state of any debt of any company nor to authorize the credit of the state to be given, pledged, or loaned to any company.
(d) Nothing in this article shall be construed to make available to any taxpayer any right to the benefits conferred by this article absent strict compliance with this article.
","history":"(Act 2024-303, §7.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38683,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37853,"codeId":17534,"versionId":null,"parentId":40,"effectiveDate":null,"supersessionDate":null,"type":"Chapter","displayId":"19","shortTitle":"Chapter 19","catchLine":"Motor Carrier Mileage Tax.","title":"Chapter 19 Motor Carrier Mileage Tax.","sectionRange":"§40-19-1 to §40-19-17","content":null,"history":null,"numChildren":12,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":38698,"hierarchyLevel":1,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37854,"codeId":17535,"versionId":13924,"parentId":17534,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-19-1","shortTitle":"Section 40-19-1","catchLine":"Definitions.","title":"Section 40-19-1 Definitions.","sectionRange":null,"content":"The following words, terms and phrases, when used in this chapter, shall have meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
(1) VEHICLE TRANSPORTING PROPERTY. A straight truck with two axles, a trailer, a truck semitrailer with three axles, and a straight truck with three axles.
(2) MOTOR CARRIER. Any person, firm, partnership, association, joint stock company, corporation, lessee, trustee, or receiver appointed by any court controlling, operating, or managing any motor vehicle used for the transportation of persons or property for hire.
(3) DEPARTMENT. The Department of Revenue of the State of Alabama.
(4) COMMISSIONER. The Commissioner of Revenue of the State of Alabama.
(5) TAXPAYER. Any person, firm, partnership, association, joint stock company, corporation, lessee, trustee, or receiver appointed by any court liable for taxes under this chapter.
(6) PERSON. Any individual, firm, copartnership, association, corporation, receiver, trustee, or any other group or combination acting as a unit, and the plural as well as the singular number, unless the intention to give a more limited meaning is disclosed by the context.
(7) SEATING CAPACITY. The actual number of regular passenger-carrying seats in a motor vehicle.
(8) REGULAR PASSENGER-CARRYING SEATS. A seat ordinarily and customarily used by one passenger but does not include folding or collapsible emergency aisle seats.
(9) AXLE. A shaft on which a wheel or wheels run and, for the purposes of this article, two such shafts connected in tandem and commonly known as a tandem axle shall be considered one axle when not equipped with dual wheels on either end of either shaft of such tandem axle.
(10) TOUR BUS. Any motor vehicle used for hire for transportation of persons and their personal property on a charter which originates within or without the boundaries of the State of Alabama, the itinerary of which is not of an established, repetitively scheduled nature utilizing routes and time schedules approved by the Public Service Commission.
","history":"(Acts 1939, No. 664, p. 1050, §1; Code 1940, T. 48, §301(33); Acts 1992, 2nd Ex. Sess., No. 92-710, p. 205, §3.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38699,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37855,"codeId":17545,"versionId":13931,"parentId":17534,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-19-2","shortTitle":"Section 40-19-2","catchLine":"To Whom Tax Paid; Motor Carrier Fund, Exemptions.","title":"Section 40-19-2 To Whom Tax Paid; Motor Carrier Fund, Exemptions.","sectionRange":null,"content":"(a) The mileage tax required under the provisions of this chapter to be paid by the contract carriers and common carriers, subject to the provisions of this chapter, to the state as compensation for use of the public highways of the state shall be paid to the Department of Revenue as required under this chapter. All said mileage taxes, fees, and penalties collected by the Department of Revenue shall be paid into the Treasury upon receipt thereof and shall be kept separate and apart by the Treasurer in said fund, to be known as the Motor Carrier Fund.
(b) All tour buses are exempt from the tax imposed by this chapter.
(c) All vehicles used as a “chartered party” vehicle and used in support of a “charter party” contract in compliance with International Registration Plan (IRP), requirements shall be exempt from the tax imposed by this chapter when used in support of a charter party contract.
","history":"(Acts 1935, No. 194, p. 256; Acts 1936-37, Ex. Sess., No. 168, p. 191; Code 1940, T. 51, §715; Acts 1951, No. 841, p. 1472, §1; Acts 1992, 2nd Ex. Sess., No. 92-710, p. 205, §4.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38700,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37856,"codeId":17552,"versionId":13938,"parentId":17534,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-19-3","shortTitle":"Section 40-19-3","catchLine":"Tax Imposed; Constitutes Debt Collectible by Civil Action.","title":"Section 40-19-3 Tax Imposed; Constitutes Debt Collectible by Civil Action.","sectionRange":null,"content":"Every motor carrier of persons for hire traversing the highways of the state, subject to the provisions of an act known as the Alabama Motor Carrier Act of 1939 [Chapter 3 of Title 37], shall pay to the State of Alabama into the fund of the state Department of Revenue as contribution to the maintenance, repair, and policing of public highways for each mile actually operated within the state on such public highways, whether such vehicle is loaded or empty, a mileage tax of one-fourth cent per mile on all passenger vehicles with a seating capacity of not less than nine nor more than 16 passengers; a mileage tax of one-half cent per mile on all passenger vehicles with a seating capacity of not less than 17 nor more than 21 passengers; a mileage tax of three-fourths cent per mile on all passenger vehicles with a seating capacity of not less than 22 nor more than 25 passengers; and a mileage tax of one cent per mile on all passenger vehicles with a seating capacity exceeding 25 passengers. “Seating capacity,” for the purpose of this chapter, means the actual number of regular passenger-carrying seats in a motor vehicle; and “regular passenger-carrying seat,” as used in this chapter means a seat ordinarily and customarily used by one passenger but does not include folding or collapsible emergency aisle seats; provided, that the number of such folding or collapsible aisle seats shall not be greater in number than 25 percent of the regular seats in such vehicle; and provided further, that, where any seats in the vehicle are not distinguished by separate cushions or backs, one seat shall be counted for each 18 inches of space on any such seat. The taxes imposed by this chapter shall be increased 50 percent if the annual license tax prescribed by the laws of this state on like vehicles is not paid. Such mileage tax shall be paid by such motor carrier in addition to all property, franchise, license or other taxes, fees and charges now or hereafter provided by law. The tax levied shall constitute a debt due the State of Alabama and may be collected by civil action in addition to the methods provided in this chapter.
","history":"(Acts 1939, No. 664, p. 1050, §2; Code 1940, T. 48, §301(34); Acts 1961, No. 673, p. 923.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38701,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37857,"codeId":17559,"versionId":13945,"parentId":17534,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-19-4","shortTitle":"Section 40-19-4","catchLine":"Taxes Payable in Monthly Installments; Returns.","title":"Section 40-19-4 Taxes Payable in Monthly Installments; Returns.","sectionRange":null,"content":"The taxes levied under the provisions of this chapter shall be due and payable in monthly installments on or before the fifteenth day of the month next succeeding the month in which the tax accrues. On or before the fifteenth day of each month, every motor carrier on whom the taxes levied by this chapter are imposed shall render to the Department of Revenue on a form prescribed by the department a true and correct statement showing: The mileage traveled on the highways of this state for the preceding month, or portion thereof and the number, kind, motor number and make of the motor vehicle so operated, together with such other information as the department may demand and require, and, at the time of making such monthly report, such person shall compute the taxes due and shall pay to the Department of Revenue the amount of taxes shown to be due. The Department of Revenue, for good cause, may extend the time for making any return required under the provisions of this chapter, but the time for filing any such return shall not be extended for a period greater than 60 days from the date such return is due to be made.
","history":"(Acts 1939, No. 664, p. 1050, §3; Code 1940, T. 48, §301(35).)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38702,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37858,"codeId":17565,"versionId":13949,"parentId":17534,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-19-5","shortTitle":"Section 40-19-5","catchLine":"Records and Reports.","title":"Section 40-19-5 Records and Reports.","sectionRange":null,"content":"(a) It shall be the duty of every motor carrier subject to the tax imposed by this chapter to keep and preserve suitable records of the mileage traveled by every vehicle subject hereto and such other books or accounts as may be necessary to determine the amount of tax for which such motor carrier is liable under the provisions of this chapter, showing the number, make, motor number or vehicle identification number in lieu of the motor and the serial numbers of the motor vehicle so operated, and all such books and records shall be open for examination at any time by the department or its duly authorized agent. The department is given full power and authority to prescribe records to be kept and reports to be made by such companies to facilitate collection of mileage tax imposed by this chapter.
(b) Any person subject to the provisions of this chapter who shall fail to make the reports or any of them as required in this chapter or who shall fail to keep the records as required in this chapter shall be guilty of a misdemeanor and, upon conviction, shall be punished as is provided in case of conviction for a misdemeanor for each offense. Each month of such failure shall constitute a separate offense.
","history":"(Acts 1939, No. 664, p. 1050, §§4, 5; Code 1940, T. 48, §§301(36), 301(37).)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38703,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37859,"codeId":17569,"versionId":13954,"parentId":17534,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-19-11","shortTitle":"Section 40-19-11","catchLine":"Reciprocal Agreements with Other States.","title":"Section 40-19-11 Reciprocal Agreements with Other States.","sectionRange":null,"content":"The Department of Revenue is empowered to enter into reciprocal agreements or contracts with other states constituting a fair exchange of rights or privileges in regard to the use of the highways of this state by motor vehicles operated for hire under the provisions of this chapter. The said reciprocal agreement or contract can be annulled on notice issued to either party by the other party thereto within 30 days thereafter.
","history":"(Acts 1939, No. 664, p. 1050, §14; Code 1940, T. 48, §301(46).)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38704,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37860,"codeId":17576,"versionId":13961,"parentId":17534,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-19-12","shortTitle":"Section 40-19-12","catchLine":"Suspension or Revocation of Certificate or Permit Upon Delinquency.","title":"Section 40-19-12 Suspension or Revocation of Certificate or Permit Upon Delinquency.","sectionRange":null,"content":"When any motor carrier shall be delinquent in paying the mileage tax as provided in this chapter for a period of 60 days, the Department of Revenue shall notify the Alabama Public Service Commission of such default in writing, and the Alabama Public Service Commission may suspend or may revoke, after public hearing, any and all certificates of public convenience and necessity or permits that are in force and effect of said motor carrier which is in default of the payment of said mileage tax.
","history":"(Acts 1939, No. 664, p. 1050; Code 1940, T. 48, §301(47).)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38705,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37861,"codeId":17579,"versionId":13965,"parentId":17534,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-19-13","shortTitle":"Section 40-19-13","catchLine":"Department of Revenue to Prescribe Rules, Etc.","title":"Section 40-19-13 Department of Revenue to Prescribe Rules, Etc.","sectionRange":null,"content":"The Department of Revenue is empowered and directed to collect all of the mileage taxes under this chapter. In order to ascertain the mileage traveled in this state by motor vehicles subject to the provisions of this chapter, the Department of Revenue shall prescribe the records to be kept and reports to be made by said contract carriers and common carriers subject to said section; and, on or before the fifteenth day of each month, each such carrier shall file with the Department of Revenue, in accordance with its requirements, a statement verified under oath by the carrier, or by a person having knowledge of the facts and duly designated therefor by the carrier, showing the mileage traveled in this state by each motor vehicle subject to the provisions of this chapter, operated by such carrier during the preceding calendar month, and shall, at the time of filing of such report, pay to the Department of Revenue the mileage tax reflected by it.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §716.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38706,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37862,"codeId":17585,"versionId":13970,"parentId":17534,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-19-14","shortTitle":"Section 40-19-14","catchLine":"Penalty for Violations.","title":"Section 40-19-14 Penalty for Violations.","sectionRange":null,"content":"Every motor carrier and every officer, agent, or employee of any such motor carrier and every other person who violates or causes or aids or abets any violation of any provision of this chapter or order, rule, or regulation of the Department of Revenue or of the Alabama Public Service Commission under the provisions of this chapter, or who knowingly makes any false or erroneous statement, report, or representation to the Alabama Public Service Commission or to the Department of Revenue, with respect to any matter placed under the jurisdiction of the Alabama Public Service Commission or the Department of Revenue by this chapter, or who shall knowingly make any false entry in the accounts or records required to be kept pursuant to the authority granted by this chapter, or who shall knowingly fail to keep, or who shall knowingly destroy or mutilate any such accounts or records shall be punished by a fine not to exceed $500 or by imprisonment in the county jail for not exceeding one year, or both such fine and imprisonment. Prosecutions may be had in the circuit court of any county of which the offense or any part thereof shall have occurred. All fines and forfeitures collected under the provisions of this chapter shall be paid into the Treasury of the State of Alabama and placed to the credit of the Alabama Department of Public Safety.
","history":"(Acts 1939, No. 664, p. 1050, §16; Code 1940, T. 48, §301(48).)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38707,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37863,"codeId":17590,"versionId":13974,"parentId":17534,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-19-15","shortTitle":"Section 40-19-15","catchLine":"Employment of Personnel for Collection of Tax.","title":"Section 40-19-15 Employment of Personnel for Collection of Tax.","sectionRange":null,"content":"The Department of Revenue is empowered to employ such agents or employees as are necessary for the collection of said mileage tax.
","history":"(Acts 1939, No. 664, p. 1050, §17; Code 1940, T. 48, §301(49).)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38708,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37864,"codeId":17596,"versionId":13978,"parentId":17534,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-19-16","shortTitle":"Section 40-19-16","catchLine":"Bond or Other Security for Collection of Tax.","title":"Section 40-19-16 Bond or Other Security for Collection of Tax.","sectionRange":null,"content":"Every such motor carrier shall file with the Department of Revenue a bond in the sum not to exceed $1,000, made payable to the State of Alabama to insure the collection of such mileage tax. Such bond to be approved by the Commissioner of the Department of Revenue; provided, that the Commissioner of the Department of Revenue may accept bonds issued by the State of Alabama or other adequate security in lieu of such bond.
","history":"(Acts 1939, No. 664, p. 1050, §18; Code 1940, T. 48, §301(50).)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38709,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37865,"codeId":17600,"versionId":13987,"parentId":17534,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-19-17","shortTitle":"Section 40-19-17","catchLine":"Motor Carrier Fund.","title":"Section 40-19-17 Motor Carrier Fund.","sectionRange":null,"content":"All such mileage tax, penalties, fees and amounts collected under this chapter shall be paid into the Treasury within 30 days after their receipt and shall be kept separate and apart from all other funds by the Treasurer in a fund to be known as the Motor Carrier Fund.
The Motor Carrier Fund shall be used as follows:
(1) Such amount of money as shall be appropriated for each fiscal year by the Legislature to the Department of Revenue with which to pay the salaries, the cost of operation and the management of the said department shall be deducted, as a first charge thereon, from the taxes collected under and pursuant to this chapter; provided, that the expenditure of said sum so appropriated shall be budgeted and allotted pursuant to Article 4 of Chapter 4 of Title 41, and limited to the amount appropriated to defray the expenses of operating said department for each fiscal year.
(2) For the payment of all necessary expenses, as approved by the Governor, of the Public Service Commission incurred in the discharge of its duties under Chapter 3 of Title 37; provided, that the amount of expense, including salary, travel, equipment, and all items of cost necessary for the enforcement of the provisions of this chapter shall be limited to the amounts appropriated therefor by the Legislature in the general appropriation bill and shall be budgeted, allotted and expended pursuant to Article 4 of Chapter 4 of Title 41. The remainder of said Motor Carrier Fund shall be paid at the end of each fiscal year, or quarterly as determined by the Governor, into the State Highway Fund, to be used for the maintenance and construction of public highways in the state.
","history":"(Acts 1935, No. 194, p. 256; Acts 1939, No. 664, p. 1050, §19; Code 1940, T. 48, §301(51); Code 1940, T. 51, §717; Acts 1951, No. 841, p. 1472, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38710,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37866,"codeId":17616,"versionId":null,"parentId":40,"effectiveDate":null,"supersessionDate":null,"type":"Chapter","displayId":"20","shortTitle":"Chapter 20","catchLine":"Oil and Gas.","title":"Chapter 20 Oil and Gas.","sectionRange":"§40-20-1 to §40-20-50","content":null,"history":null,"numChildren":4,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":38711,"hierarchyLevel":1,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37867,"codeId":17619,"versionId":null,"parentId":17616,"effectiveDate":null,"supersessionDate":null,"type":"Article","displayId":"1","shortTitle":"Article 1","catchLine":"Privilege Tax on Production.","title":"Article 1 Privilege Tax on Production.","sectionRange":"§40-20-1 to §40-20-14","content":null,"history":null,"numChildren":12,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":38712,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37868,"codeId":17620,"versionId":13995,"parentId":17619,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-20-1","shortTitle":"Section 40-20-1","catchLine":"Definitions.","title":"Section 40-20-1 Definitions.","sectionRange":null,"content":"For the purpose of this article, the following terms shall have the respective meanings ascribed by this section:
(1) DEPARTMENT. The state Department of Revenue.
(2) ANNUAL. The calendar year or the taxpayer’s fiscal year, when permission is obtained from the department to use a fiscal year as a tax period in lieu of a calendar year.
(3) VALUE. The sale price or market value at the mouth of the well. If the oil or gas is exchanged for something other than cash, if there is no sale at the time of severance or if the relation between the buyer and the seller is such that the consideration paid, if any, is not indicative of the true value or market price, then the department shall determine the value of the oil or gas subject to the tax hereinafter provided for, considering the sale price for cash of oil or gas of like quality.
(4) OIL. Crude petroleum oil and other hydrocarbons regardless of gravity which are produced at the well in liquid form by ordinary production methods and which are not the result of condensation of gas after it leaves the well.
(5) GAS. All natural gas, including casinghead gas, and all other hydrocarbons not defined as oil in subdivision (4) above.
(6) SEVERED. The extraction or withdrawing from the soil or water or from below the surface of the soil or water of any oil or gas, whether such extraction or withdrawal shall be by natural flow, mechanically enforced flow, pumping, or any other means employed to get the oil or gas from the soil or water or from below the surface of the soil or water.
(7) PERSON. Any natural person, firm, copartnership, joint venture, association, corporation, estate, trust, and any other group or combination acting as a unit, and the plural as well as the singular number.
(8) PRODUCER. Any person engaging or continuing in the business of oil or gas production, which, for the purpose of this article, includes the owning, controlling, managing, or leasing of any oil or gas property or oil or gas well, and producing in any manner any oil or gas by taking it from the soil or waters, or from beneath the soil or waters, of the State of Alabama, and further includes receiving money or other valuable consideration as royalty or rental for oil or gas produced or because of oil or gas produced, whether produced by him or by some other person on his behalf, either by lease, contract or otherwise, and whether the royalty consists of a portion of the oil or gas produced being run to his account or a payment in money or other valuable consideration.
(9) SUBMERGED LANDS. All lands within the territorial jurisdiction of the State of Alabama that are continuously or intermittently covered by marine or marine influenced waters and are below the mean high tide mark on all islands and land adjacent to the Mississippi Sound, Mobile Bay, Bon Secour Bay, Wolf Bay, Arnica Bay, Bay La Launch, and Perdido Bay; and excludes all areas upstream of the confluence of the Mississippi Sound, Mobile Bay, Wolf Bay and Perdido Bay with their natural tributaries.
(10) OFFSHORE DRILLING OR PRODUCTION FACILITIES. Barges, platforms or other drilling or production facilities located on submerged lands to drill or to produce oil or gas.
(11) OFFSHORE PRODUCTION. Gas or oil produced from offshore drilling or production facilities from wells located on submerged lands within the territorial jurisdiction of the State of Alabama.
(12) DISCOVERY WELL. Any well capable of producing oil and/or gas from a single pool in which a well has not been previously completed as a well capable of producing.
(13) DEVELOPMENT WELLS. All oil and/or gas producing wells other than discovery wells and replacement wells.
(14) ONSHORE WELL. Any oil or gas well that is drilled in an area other than submerged lands as defined herein.
(15) REPLACEMENT WELLS. A well drilled on a drilling and/or production unit to replace another well which is drilled in the same unit and completed in the same pool.
(16) COMMENCED. A well shall be deemed to have commenced when the well is spudded.
(17) COMPLETION. A well shall be deemed to be completed for purposes of this article when drilling and logging operations have ceased.
(18) POOL. As used herein, pool shall mean a single underground reservoir containing a common accumulation of oil or gas or both. Each zone of a general structure which is completely separated from any other zone in the structure is a single pool as that term is used herein.
(19) ENHANCED RECOVERY PROJECT. An oil or gas recovery project which is approved by the State Oil and Gas Board of Alabama employing one or more of the following methods:
a. Recycling, injecting or flooding a pool, or pools, or portion thereof, with air, gas, water, hydrocarbons, carbon dioxide (CO2), or any other substance, or any combination or combinations thereof; or
b. The use of polymers, steam flooding or fire flooding.
(20) SUPPLEMENTAL ENHANCED RECOVERY PROJECT. An enhanced recovery project in which injection of substances into a unitized area was initiated prior to January 1, 1985, and thereafter is improved by expanding or otherwise changing the unit operations associated with the project as approved by the State Oil and Gas Board of Alabama for the purpose of increasing the ultimate recovery of hydrocarbons.
(21) INCREMENTAL OIL OR GAS PRODUCTION. The amount of oil or gas which will be produced as a result of a qualified enhanced recovery project and which is in excess of the amount of oil or gas which could have been produced economically and efficiently from a pool or pools or portion thereof by production methods being utilized prior to said qualified enhanced recovery project being approved by the State Oil and Gas Board of Alabama.
(22) QUALIFIED ENHANCED RECOVERY PROJECT. A qualified enhanced recovery project shall mean an enhanced recovery project or supplemental enhanced recovery project that meets all of the following criteria:
a. That the area where the enhanced recovery project or supplemental enhanced recovery project is employed has been unitized in accordance with the provisions of Article 3, Chapter 17 of Title 9, as amended.
b. That injection of substances associated with the enhanced recovery project or supplemental enhanced recovery project has been or will be implemented as an integral part of the operations of the unitized area.
c. That the enhanced recovery project or supplemental enhanced recovery project be certified by the State Oil and Gas Board of Alabama as capable of incremental oil or gas production.
d. That the enhanced recovery project or supplemental enhanced recovery project be implemented on or after January 1, 1985.
","history":"(Acts 1945, No. 2, p. 20, §1; Acts 1983, 4th Ex. Sess., No. 83-889, §1; Acts 1984, No. 84-328, p. 749, §1; Acts 1985, 2nd Ex. Sess., No. 85-911, p. 182, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38713,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37869,"codeId":17627,"versionId":30366,"parentId":17619,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-20-2","shortTitle":"Section 40-20-2","catchLine":"Levy and Amount of Tax Upon Business of Producing or Severing Oil or Gas from Soil, Etc., Generally.","title":"Section 40-20-2 Levy and Amount of Tax Upon Business of Producing or Severing Oil or Gas from Soil, Etc., Generally.","sectionRange":null,"content":"(a)(1) There is hereby levied, to be collected hereafter, as herein provided, annual privilege taxes upon every person engaging or continuing to engage within the State of Alabama in the business of producing or severing oil or gas, as defined herein, from the soil or the waters, or from beneath the soil or the waters, of the state for sale, transport, storage, profit, or for use. The amount of such tax shall be measured at the rate of eight percent of the gross value of the oil or gas at the point of production except as provided in subsequent subdivisions of this subsection. Provided, however, that the tax on offshore production, produced from depths greater than 8,000 feet below mean sea level, shall not be computed as a percentage of gross value at the point of production, as provided in this article, but shall be computed as a percentage of gross proceeds, as provided in Article 1A of this chapter.
(2) Effective May 1, 1985, and thereafter, the incremental oil or gas production produced during a given year resulting from a qualified enhanced recovery project shall be taxed at the rate of four percent of gross value at the point of production of the incremental oil or gas production. The State Oil and Gas Board of Alabama shall approve the qualified enhanced recovery project and the determination of the projected annual oil or gas production that could have otherwise been produced without the benefit of the initiation of the qualified enhanced recovery project at a hearing held pursuant to Section 9-17-7, as amended, and shall notify the Alabama Department of Revenue thereof.
(3) All wells producing 25 barrels or less of oil per day or producing 200,000 cubic feet or less of gas per day shall be taxed at the rate of four percent of gross value of the oil or gas at the point of production.
(4) All oil and gas produced from onshore discovery wells, all oil and gas produced from onshore development wells on which drilling commenced within four years of the completion date of the discovery well and producing from a depth of 6,000 feet or greater, and all oil and gas produced from onshore development wells on which drilling commenced within two years of the completion date of the discovery well and producing from a depth less than 6,000 feet shall be taxed at a rate of six percent of the gross value of the oil and gas at the point of production for a period of five years from the date production begins from the discovery and development wells, provided, that all production to receive a six percent tax rate, which is produced from discovery wells, must be from discovery wells permitted by the State Oil and Gas Board of Alabama after July 1, 1984, and that all production to receive a six percent tax rate from development wells on which drilling commenced within the required time of completion of a discovery well, which was permitted after July 1, 1984, and the development well must also have been permitted after July 1, 1984; provided however, that the six percent tax rate applicable to a discovery well or development well shall be applicable to any replacement well drilled to replace the discovery well or the development well during the six percent five-year, tax rate period for only the remainder of the tax rate period.
(5) For any well for which the initial permit issued by the Oil and Gas Board is dated on or after July 1, 1988, except a replacement well for a well for which the initial permit issued by the Oil and Gas Board is dated before July 1, 1988, the rate provided in subdivision (1) of this subsection shall be reduced by 2 percent.
(6) For any well for which the initial permit issued by the Oil and Gas Board is dated on or after July 1, 1996, and before July 1, 2002, except a replacement well for a well for which the initial permit issued by the Oil and Gas Board is dated before July 1, 1996, the applicable rate shall be reduced by 50 percent for a period of five years commencing with commercial production after which subdivision (5) shall apply.
(b) The tax is hereby levied upon the basis of the entire production in this state, including what is known as the royalty interest, on which production the amount of such tax shall be a lien, regardless of the place of sale or to whom sold, or by whom used, or the fact that the delivery may be made to points outside the state; and the tax shall accrue at the time such oil or gas is severed from the soil or the waters, or from beneath the soil or the waters, and in its natural, unrefined or unmanufactured condition. Provided, however, that natural gas lawfully injected into oil or gas pools or reservoirs in the soil or beneath the soil or waters of the State of Alabama is exempt from this tax. Provided, further, that natural gas lawfully injected into the earth for the purpose of lifting oil or gas in the State of Alabama is exempt from this tax. However, if any gas so injected into the earth is sold for such purposes or injected into underground storage facilities as defined in Section 9-17-150 et seq., then the gas so sold or injected shall not be exempt from this tax. Natural gas lawfully vented or flared in connection with the production, treatment, or processing of oil or gas is exempt from this tax.
(c) A county, city, town, or municipality of the State of Alabama shall not establish, levy, impose, or collect, as a condition of doing business or otherwise, any tax, fee, license, or charge whatsoever, directly or indirectly, on or with respect to the production, treating, processing, ownership, sale, storage, purchase, marketing, or transportation on any oil or gas produced in the State of Alabama and on which severance taxes have been paid to the State of Alabama, or upon the business of producing, treating, processing, owning, selling, buying, storing, marketing, or transporting such oil or gas, or upon the ownership, operation, or maintenance of plants, facilities, machinery, pipelines, gathering lines, or any equipment whatsoever, which are, or may be, necessary or convenient to the production, treating, processing, ownership, storage, sale, purchase, marketing, or transportation of such oil or gas; provided, that nothing herein shall be construed to prohibit, limit or restrict a county, city, town, or municipality from imposing and collecting ad valorem taxes on any property, real or personal, not otherwise now exempted by law; further, the limitation herein imposed upon counties, cities, towns, and municipalities shall not apply to any county, city, town, or municipality which does not receive a share of the severance tax levied upon production other than offshore production as defined in Section 40-20-1 under the provisions of this article. The limitation herein imposed upon counties, cities, towns, and municipalities shall remain in full force and effect in regard to offshore production as defined in Section 40-20-1.
(d) Nothing contained herein shall be deemed to limit or to enlarge the authority of a county, city, town, or municipality to levy taxes or licenses on oil refining facilities located therein or on the suppliers of services or goods not including oil or gas to those persons engaging in the business of producing, treating, processing, owning, selling, buying, storing, marketing, or transporting such oil or gas. Provided, however, no such taxes or licenses shall be levied on offshore drilling or production facilities as defined in Section 40-20-1.
(e) In all cases of production of oil from unit operations as authorized and approved by the State Oil and Gas Board of Alabama, for purposes of computing the per well production, the aggregate production of oil from the entire unit shall be divided by the number of wells within the unit, including injection, disposal, and other wells utilized in unit operations, and the quotient thereof shall be deemed and declared to be the number of barrels of oil produced from each well in such unit regardless of the actual amount of oil per day produced from the well, if any.
","history":"(Acts 1945, No. 2, p. 20, §2; Acts 1971, No. 2057, p. 3317, §1; Acts 1979, No. 79-434, p. 687, §1; Acts 1980, No. 80-708, p. 1438; Acts 1983, 1st Ex. Sess., No. 83-39, p. 39, §1; Acts 1983, 4th Ex. Sess., No. 83-889, p. 116, §2; Acts 1984, No. 84-328, p. 749, §2; Acts 1984, No. 84-660, p. 1323; Acts 1984, No. 84-672, p. 5; Acts 1985, 2nd Ex. Sess., No. 85-911, p. 182, §1; Acts 1988, No. 88-601, p. 935, §2; Acts 1994, No. 94-367, p. 615, §1; Acts 1996, 2nd Ex. Sess., No. 96-877, p. 1688, §1; Act 99-584, p. 1332, §1; Act 2009-147, p. 284, §3.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38714,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37870,"codeId":17631,"versionId":14003,"parentId":17619,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-20-3","shortTitle":"Section 40-20-3","catchLine":"Tax Levied Upon Producers in Proportion to Ownership at Time of Severance; by Whom Tax Paid; Lien.","title":"Section 40-20-3 Tax Levied Upon Producers in Proportion to Ownership at Time of Severance; by Whom Tax Paid; Lien.","sectionRange":null,"content":"(a) The privilege tax hereby imposed is levied upon the producers of such oil or gas in the proportion of their ownership at the time of severance, but, except as otherwise herein provided, the tax shall be paid by the person in charge of the production operations, who is hereby authorized, empowered, and required to deduct from any amount due to producers of such production at the time of severance the proportionate amount of the tax herein levied before making payments to such producers. The tax shall become due and payable as provided by this article and such tax shall constitute a first lien upon any of the oil or gas so produced when in the possession of the original producer or any purchaser of such oil or gas in its unmanufactured state or condition. In the event the person in charge of production operations or the purchaser fails to pay the tax, then the department shall proceed against the producer or the purchaser to collect the tax in the manner hereinafter provided by this article.
(b) When any person in charge of production operations shall sell the oil or gas produced by him, the purchaser shall account for the tax.
(c) When any person in charge of production operations shall use or dispose of the oil or gas for fuel or any other purpose, he shall withhold the tax imposed by this article; and, if he is required to pay other interest holders, he is hereby authorized, empowered, and required to deduct from any amounts due them the amount of tax levied and due under the provisions of this article before making payment to them.
(d) Every person in charge of production operations by which oil or gas is severed from the soil or waters, or from beneath the soil or waters, of the State of Alabama who fails to deduct and withhold, as required herein, the amount of tax from sale or purchase price, when such oil or gas is sold or purchased under contract or agreement, or on the open market, or otherwise, shall be liable to the state for the full amount of taxes, interest and penalties due the state; and the department shall proceed to collect the tax from the person in charge of production operations, under the provisions of this article, as if he were the producer of the oil or gas.
","history":"(Acts 1945, No. 2, p. 20, §3; Acts 1953, No. 454, p. 559.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38715,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37871,"codeId":17637,"versionId":14007,"parentId":17619,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-20-4","shortTitle":"Section 40-20-4","catchLine":"Enforcement of Article; Collection of Taxes; Statements to Be Filed and Records Kept; Inspection of Records; Hearings and Compelling Attendance of Witnesses; Rules and Regulations.","title":"Section 40-20-4 Enforcement of Article; Collection of Taxes; Statements to Be Filed and Records Kept; Inspection of Records; Hearings and Compelling Attendance of Witnesses; Rules and Regulations.","sectionRange":null,"content":"(a) The department is hereby authorized and directed to administer and enforce the provisions of this article and to collect all of the taxes levied under the provisions hereof. Every person producing or in charge of production of oil and gas shall file a return with the department by the 15th day of the second calendar month following the month of production, on forms the department prescribes which must contain a printed declaration that the information being reported is made under the penalty of perjury, and which must be subscribed by the person who completes such forms, showing the location of each producing property operated or controlled by such producer during the reporting period; the number and kind of wells thereon; the kind of oil or gas produced; the gross quantity thereof produced; the actual cash value thereof at the time and place of production; including any and all premiums received from the sale thereof; the amount of tax due on the total gross production; the portion of gross production payable as royalty and such other information as the department may require.
(b) All persons engaged in the business of severing oil or gas are hereby required to keep full and complete records showing the nature, character, and volume of all such oil or gas severed, the value of such oil or gas at the point of production, the manner in which such oil or gas was disposed of, the prices or the consideration received for the sale thereof and the quantity or volume of such oil or gas stored anywhere within or without the State of Alabama; and such records shall at all reasonable times be open for inspection by representatives or agents of the department.
(c) The department or its duly authorized representative or agent shall have the power and authority to inspect all records required to be kept under the provisions of this article, to conduct hearings and to compel the attendance of witnesses for the purpose of determining the amount of taxes due under the terms and provisions of this article.
(d) The Department of Revenue is hereby authorized to promulgate reasonable rules and regulations relating to the administration and enforcement of this chapter, provided, however, that no rule or regulation adopted or promulgated by the department shall alter, limit, extend or be out of harmony with any of the provisions of this chapter.
","history":"(Acts 1945, No. 2, p. 20, §4; Acts 1991, 1st Ex. Sess., No. 91-798, p. 193, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38716,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37872,"codeId":17642,"versionId":14011,"parentId":17619,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-20-5","shortTitle":"Section 40-20-5","catchLine":"When Reports to Be Filed; Payments to Accompany Reports.","title":"Section 40-20-5 When Reports to Be Filed; Payments to Accompany Reports.","sectionRange":null,"content":"All reports required under the provisions of this article shall be filed with the department on or before the fifteenth day of the second calendar month following the month of production and shall cover the second preceding calendar month. All producers are hereby required to pay to the department all taxes accruing under the provisions of this article for the period of time covered by the report herein required, and such payment shall accompany the required report.
","history":"(Acts 1945, No. 2, p. 20, §5; Acts 1981, No. 81-704, p. 1181; Acts 1991, 1st Ex. Sess., No. 91-798, §2; Acts 1992, No. 92-186, p. 349, §59.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38717,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37873,"codeId":17651,"versionId":14017,"parentId":17619,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-20-7","shortTitle":"Section 40-20-7","catchLine":"Deduction of Appropriation for Expenses of Department.","title":"Section 40-20-7 Deduction of Appropriation for Expenses of Department.","sectionRange":null,"content":"Such amount of money as shall be appropriated for each fiscal year by the Legislature to the Department of Revenue with which to pay the salaries, the cost of operation and the management of the said department shall be deducted, as a first charge thereon, from the taxes collected under and pursuant to this article; provided, that the expenditure of said sum so appropriated shall be budgeted and allotted pursuant to Article 4 of Chapter 4 of Title 41, and limited to the amount appropriated to defray the expenses of operating said department for each fiscal year. The net remainder shall remain in the State Treasury for distribution as hereinafter provided.
","history":"(Acts 1945, No. 2, p. 20, §7; Acts 1951, No. 838, p. 1469.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38718,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37874,"codeId":17658,"versionId":30367,"parentId":17619,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-20-8","shortTitle":"Section 40-20-8","catchLine":"Allocation and Distribution of Net Taxes Collected; Property Which Consists of Submerged Lands and Onshore Lands; Onshore Lands Defined; Applicability of Section; Final Determination Establishing Allocation Base.","title":"Section 40-20-8 Allocation and Distribution of Net Taxes Collected; Property Which Consists of Submerged Lands and Onshore Lands; Onshore Lands Defined; Applicability of Section; Final Determination Establishing Allocation Base.","sectionRange":null,"content":"(a) Ninety percent of the net amount of all taxes herein levied and collected by the department on oil or gas produced from submerged lands as herein defined shall be deposited to the State General Fund. The remaining 10 percent of such net amount shall be allocated and distributed by the Comptroller to the county in which the oil or gas was produced for county purposes or to be expended at the discretion of the county governing body.
(b) Twenty-five percent of the net amount of all taxes herein levied and collected by the department, except as provided herein in subsection (a), shall be deposited by the department to the General Fund of the state.
(c) Sixty-six and two-thirds percent of the remaining 75 percent of all taxes herein levied and collected by the department, after the same has been certified into the State Treasury, shall be allocated and distributed by the Comptroller to the credit of the General Fund of the state and to the county in which the oil or gas was produced and to the municipalities therein in the proportion set out in the following schedule:
(1) Twenty-five percent of all taxes herein levied and collected on oil and gas produced from oil or gas wells located within any county, shall be allocated and distributed to each such county for county purposes or to be expended at the discretion of the county governing body. In all counties having a population of not less than 34,875 nor more than 36,000, according to the 1970 Federal Decennial Census, such funds shall be allocated and distributed by the counties to the boards of education of the public schools in such counties on a pro rata basis as established by the number of children in net enrollment in the public schools during the prior school attendance year. In all counties having a population of not less than 16,000 nor more than 16,250, according to the 1970 Federal Decennial Census, such funds shall be allocated and distributed by the counties as follows: Each year the first $150,000 shall be paid to the custodian of the county school funds, and after the payment of said $150,000 each year, the balance of the funds shall be divided and paid one-third to the custodian of the county school funds and two-thirds to the county general funds.
(2) Ten percent of all taxes herein levied and collected on oil and gas produced from oil or gas wells located within the corporate limits or the police jurisdiction of any municipality shall be allocated and distributed to each such municipality; except that all wells within the corporate limits of police jurisdiction of any municipality where taxes are levied and collected at a rate of four percent, 10 percent of all the four percent taxes shall be distributed to each such municipality.
(3) Fifty percent of the first $150,000 remaining, or any part thereof, collected per year under the provisions of this article, shall be allocated and distributed to the state, 42 1/2 percent to the county, and seven and one-half percent to municipalities therein on a population basis.
(4) Eighty-four percent of all remaining sums collected per year under the provisions of this article shall be allocated and distributed to the state, 14 percent to the county and two percent to municipalities therein on a population basis.
(d) Sixteen and two-thirds percent of the remaining 75 percent of all taxes herein levied and collected by the department shall be certified into the State Treasury to the credit of the State General Fund.
(e) Sixteen and two-thirds percent of the remaining 75 percent of all taxes herein levied and collected by the department on oil and gas produced from oil or gas wells located within any county shall be allocated and distributed to each such county for county purposes, to be expended at the discretion of the county governing body.
(f) For the purposes of this section, when part of the property within the drilling or production unit or within the unit area for any producing well(s) consists of submerged lands and part consists of lands other than submerged lands (herein called onshore lands), the following shall apply:
(1) Only that portion of production (oil or gas or both) from the well(s) allocated (under or pursuant to an order of the State Oil and Gas Board) to the submerged lands shall be deemed to have been produced from submerged lands, regardless of where the actual well(s) from which the production was obtained is (are) located;
(2) The portion of the production allocated (under or pursuant to an order of the State Oil and Gas Board) to the onshore lands shall be deemed to have been produced from a well located on the onshore lands to which such production is allocated, and the portion of the production allocated (under or pursuant to such an order) to any onshore lands located within the police jurisdiction or the corporate limits of any municipality shall be deemed to have been produced from a well located within the corporate limits or police jurisdiction;
(3) If, because of common ownership or otherwise, no specific portion of the production from the well(s) has been separately allocated (under or pursuant to an order of the State Oil and Gas Board) to any or all of the onshore lands located within the drilling or production unit or within a designated tract in the unit area, then, for the purposes of this section, a portion of the production shall be deemed to have been allocated (under or pursuant to such an order) to the onshore lands in question, such portion to be in the proportion that the acreage of the onshore land to which no specific portion of the production has been separately allocated bears to the total acreage included within the unit or designated tract (whichever is applicable); and
(4) Any production not allocated to or deemed to have been allocated to the onshore lands shall be deemed to have been allocated (under or pursuant to an order of the State Oil and Gas Board) to the submerged lands.
(g) Anything herein to the contrary notwithstanding, onshore lands shall mean all lands that are not submerged lands (as elsewhere herein defined); provided, however, if any submerged lands are located within the police jurisdiction or corporate limits of any municipality, those submerged lands shall, for the purposes of this section, be defined as, and deemed to be, onshore lands and not submerged lands.
(h) The provisions of this section shall apply only to the allocation and distribution of taxes and shall not apply to the levy and collection of taxes; and nothing contained in this section shall be construed to affect in any way the provisions of Section 40-20-2 or Section 40-20-21.
(i) A final determination establishing the allocation base shall be made within 90 days of April 23, 1990.
","history":"(Acts 1945, No. 2, p. 20, §8; Acts 1971, No. 2057, p. 3317, §1; Acts 1979, No. 79-434, p. 687, §2; Acts 1983, 1st Ex. Sess., No. 83-39, p. 39, §2; Acts 1983, 4th Ex. Sess., No. 83-889, p. 116, §3; Acts 1984, No. 84-662, p. 1326; Acts 1990, No. 90-652, p. 1249; Act 2009-147, p. 284, §3.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38719,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37875,"codeId":17664,"versionId":14027,"parentId":17619,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-20-9","shortTitle":"Section 40-20-9","catchLine":"Reports to Be Made on Blanks Furnished by Department; Certificate and Verification Required.","title":"Section 40-20-9 Reports to Be Made on Blanks Furnished by Department; Certificate and Verification Required.","sectionRange":null,"content":"All reports required to be filed under the provisions of this article shall be made on blanks, furnished by the department, which shall contain the following certificate: “I hereby certify under oath that I am duly authorized to make this tax return; that the information herein contained is true and correct and same is shown by the records of the identified producer; and that the amount of taxes accompanying this return is the true and correct amount of taxes due the State of Alabama by this producer.” The same must be duly verified.
","history":"(Acts 1945, No. 2, p. 20, §9.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38720,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37876,"codeId":17673,"versionId":14033,"parentId":17619,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-20-11","shortTitle":"Section 40-20-11","catchLine":"Enjoining Violation of Article.","title":"Section 40-20-11 Enjoining Violation of Article.","sectionRange":null,"content":"If it is brought to the attention of the department that any producer is guilty of violating any of the provisions of this article, the department is hereby authorized and required, through lawfully authorized counsel, to proceed in the courts of the state to obtain a writ of injunction, which writ shall be granted by the court when applied for in the manner prescribed by law. The department, however, is hereby relieved of the requirement to furnish bond of any character.
","history":"(Acts 1945, No. 2, p. 20, §11.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38721,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37877,"codeId":17679,"versionId":14037,"parentId":17619,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-20-12","shortTitle":"Section 40-20-12","catchLine":"Exemption from Ad Valorem Taxes.","title":"Section 40-20-12 Exemption from Ad Valorem Taxes.","sectionRange":null,"content":"(a) All oil or gas produced, all leases in production, including mineral rights in producing properties, and all oil or gas under the ground on producing properties within the State of Alabama shall be exempt from all ad valorem taxes now levied or hereafter levied by the State of Alabama or by any county or municipality. No additional assessment shall be added to the surface value of such lands by the presence of oil or gas thereunder or its production therefrom.
(b) For the purpose of this article, the area of a lease or leases, including oil and gas rights considered to be in production, or the area of any other producing property considered to be in production, shall include an oil or gas drilling unit as established by the State Oil and Gas Board of Alabama and shall be exempt from ad valorem taxation because of production from any one well.
","history":"(Acts 1945, No. 2, p. 20, §12; Acts 1957, No. 600, p. 859.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38722,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37878,"codeId":17684,"versionId":14042,"parentId":17619,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-20-13","shortTitle":"Section 40-20-13","catchLine":"Collection and Disbursement of Additional Taxes.","title":"Section 40-20-13 Collection and Disbursement of Additional Taxes.","sectionRange":null,"content":"If the department is authorized by any other law to collect any further or additional taxes from producers, as herein defined, such taxes shall be collected in the same manner as the taxes herein provided, and the return of such taxes shall be included in the report for the taxes herein levied and provided. Such further or additional taxes shall be disbursed as authorized by such other law.
","history":"(Acts 1945, No. 2, p. 20, §13.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38723,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37879,"codeId":28657,"versionId":22343,"parentId":17619,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-20-14","shortTitle":"Section 40-20-14","catchLine":"Credits Against Tax for Manufacturers of Direct Reduced Iron.","title":"Section 40-20-14 Credits Against Tax for Manufacturers of Direct Reduced Iron.","sectionRange":null,"content":"Repealed by Act 2015-70 effective April 21, 2015.
","history":"(Act 98-285, p. 463, §§1, 2, 5.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38724,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37880,"codeId":37797,"versionId":null,"parentId":17616,"effectiveDate":null,"supersessionDate":null,"type":"Article","displayId":"1A","shortTitle":"Article 1A","catchLine":"Privilege Tax on Certain Offshore Production.","title":"Article 1A Privilege Tax on Certain Offshore Production.","sectionRange":"§40-20-20 to §40-20-23","content":null,"history":null,"numChildren":4,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":38725,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37881,"codeId":37798,"versionId":30589,"parentId":37797,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-20-20","shortTitle":"Section 40-20-20","catchLine":"Definitions.","title":"Section 40-20-20 Definitions.","sectionRange":null,"content":"In addition to the definitions contained in Section 40-20-1, which shall apply for purposes of this article, except to the extent there is a conflict with the definitions contained herein, the following definitions shall apply for the purposes of this article.
(1) Gross Proceeds. The gross proceeds for a month shall be the sum of the month’s market proceeds and non-market proceeds. No adjustments or deductions may be taken from the market proceeds or the non-market proceeds in computing gross proceeds.
(2) Market Proceeds. The market proceeds for a month shall be the sum of the amounts due under all market sales transactions during the month. The amount due under each market sales transaction shall be determined by multiplying the unit sales price by the volume of severed oil or gas sold in each transaction.
(3) Market Sales Transaction. An agreement or contract for the sale of offshore production produced from depths greater than 8,000 feet below mean sea level that has been entered into by or on behalf of a producer or its related party and an unrelated party, regardless of the place of sale, regardless of any interim sales to parties that are not unrelated, and regardless of any processing, treating, or transportation done prior to the point of sale.
(4) Non-Market Proceeds. The non-market proceeds for a month shall be the cash and other consideration that would have been due if all non-market taxable volumes for the month had been sold for the same unit sales price due under the market sales transactions occurring during that month, using weighted averages if two or more market sales transactions occurred during the month; provided, however, that if less than 10% by volume of the total taxable offshore production produced during a month is sold in market sales transactions, then the non-market proceeds shall be deemed to be the cash and other consideration, as reasonably determined by the department, that would have been generated if the non-market taxable volumes had been sold in a market sale transaction, considering the unit sales price for offshore production of like quality if such data is available; otherwise, considering published data from recognized market centers for trading oil and/or gas, in both cases adjusted for location and quality to the point at which the first market sale would likely have occurred. Taxpayers seeking to use the published selling prices in calculating their monthly non-market proceeds may request a determination from the department approving the market center data and the manner of making the calculations. The calculations must be consistent from month to month, except as approved by the department.
(5) Non-Market Taxable Volumes. The non-market taxable volumes for a month shall be the total volumes of offshore production not disposed of pursuant to a market sales transaction, excluding volumes taken in-kind by other producers in accordance with Section 40-20-22(g). The total volumes include all offshore production used or consumed in operations, but do not include natural gas lawfully vented or flared in connection with the production, treatment, or processing of oil or gas in the State of Alabama, or natural gas lawfully injected into the earth for the purpose of lifting oil or gas in the State of Alabama. Provided, however, that if any gas so injected into the earth is sold for such purposes or injected into underground storage facilities as defined in Section 9-17-150 et seq., then the gas so sold or injected shall be included in the total non-market taxable volumes for the month.
(6) Transportation Charges. The actual cash amount paid to an unrelated party by a producer or seller of severed gas for transporting pipeline quality gas to the point of a market sales transaction. Transportation charges may include amounts paid to a related party if the related party is a regulated entity operating an open access natural gas pipeline. The transportation charges are limited to the lesser of the actual fees paid or the maximum allowable firm transportation tariff amount approved by the Federal Energy Regulatory Commission, or other appropriate governmental authority.
(7) Unit Sales Price. The total cash or other consideration due for each unit of offshore production, sold under the terms of a market sales transaction, including any and all premiums, bonuses, or other amounts received. If allowable actual transportation charges were paid by the producer or seller for transporting pipeline quality gas to the point of sale, the unit sales price may be adjusted to remove the transportation charge. No other adjustments or deductions may be taken from the actual amounts due in determining the unit sales price.
(8) Unrelated Party. A person or entity with opposing economic interests to the producer or seller of severed oil or gas. No producer’s parent company, subsidiary company, sister company, or other company affiliated through common ownership of greater than 5% or control will be considered an unrelated party. In addition, no producer’s principal owners, management, members of their immediate families, or companies owned or controlled by any of them will be considered unrelated parties.
","history":"(Act 2009-147, p. 284, §4.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38726,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37882,"codeId":37799,"versionId":30590,"parentId":37797,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-20-21","shortTitle":"Section 40-20-21","catchLine":"Computation of Privilege Tax.","title":"Section 40-20-21 Computation of Privilege Tax.","sectionRange":null,"content":"The privilege tax levied by this chapter as it applies to offshore production from depths greater than 8,000 feet below mean sea level shall not be computed as a percentage of gross value at the point of production, as provided in Article 1, but shall be computed as a percentage of gross proceeds. The amount of the tax shall be computed at the rate of three and sixty-five one hundredths percent (3.65%) of the gross proceeds attributable to the offshore production.
","history":"(Act 2009-147, p. 284, §4.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38727,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37883,"codeId":37800,"versionId":30591,"parentId":37797,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-20-22","shortTitle":"Section 40-20-22","catchLine":"Applicability; Payment of and Liability for Taxes; Reporting.","title":"Section 40-20-22 Applicability; Payment of and Liability for Taxes; Reporting.","sectionRange":null,"content":"(a) The tax levied by this chapter and computed pursuant to Section 40-20-21 applies to all offshore production produced from depths greater than 8,000 feet below mean sea level, regardless of the method or place or timing of delivery or sale, or the manner or place of processing, or to whom sold, or by whom used, or the fact that the delivery, sale, or storage may be made at points outside the state, or the fact that processing or other preparation for sale, storage, or use occurs outside the state. It is the intent of this chapter that the tax is to be computed on the production of all offshore oil or gas in this state from depths greater than 8,000 feet below mean sea level, however the tax shall be computed only once on any given volume of such offshore production.
(b) Natural gas produced by offshore production in the State of Alabama that is lawfully injected into oil or gas pools or reservoirs in the soil or beneath the soil or waters of the State of Alabama for the purpose of lifting oil or gas in the State of Alabama is exempt from this tax. However, if any such gas so injected into the earth is sold for such purposes or injected into underground storage facilities as defined in Section 9-17-150 et seq., then the gas so sold or injected shall not be exempt from this tax. Natural gas lawfully vented or flared in connection with the production, treatment, or processing of oil or gas in the State of Alabama is exempt from this tax.
(c) The tax levied by this chapter and computed pursuant to Section 40-20-21 applies to the producers of offshore production in the proportion of their ownership at the time of severance, including what is known as the royalty interest. The tax shall be paid by the person in charge of the production operations, who is hereby authorized, empowered, and required to deduct from any amount due to producers of offshore production the proportionate amount of the tax levied by this chapter before making payments to the producers.
(d) When any person in charge of production operations shall use or dispose of the offshore production for fuel or any other purpose, he or she shall withhold the tax imposed by this chapter. If he or she is required to pay other interest holders, he or she is authorized, empowered, and required to deduct from any amounts due them the amount of tax levied and due under this chapter before making any payment to them.
(e) Every person in charge of production operations by which offshore production is severed from the soil or waters, or from beneath the soil or waters, of the State of Alabama who fails to deduct and withhold, as required by this section, the amount of tax from the sale or purchase price, when the offshore production is sold or purchased under contract or agreement, or on the open market, or otherwise, shall be liable to the state for the full amount of taxes, interest, and penalties due the state. The department shall proceed to collect the tax from the person in charge of production operations, under this chapter, as if he or she were the producer of the offshore production.
(f) The person in charge of the production operations shall report to the department the total monthly volumes and gross proceeds attributable to all offshore production produced during the month, including amounts attributable to royalty interests. If any gross proceeds are attributable to a producer who is exempt from tax, the operator shall be entitled to list the gross proceeds attributable to the exempt producer on his or her monthly tax return and subtract the exempt producer’s gross proceeds from the total gross proceeds in calculating the gross proceeds for which he or she is liable for the tax. A producer claiming an exemption from the tax shall apply to the department for the exemption in such manner as the department may reasonably require, and the department shall inform the producer and the person in charge of production operations of its determination.
(g) A person in charge of the production operations who delivers offshore production to a producer for marketing or otherwise disposing of its own oil or gas may report to the department the total monthly volumes delivered to each take-in-kind producer. The operator shall then be entitled to exclude the take-in-kind producer’s volumes from its calculation of the total non-market taxable volumes and from the calculation of the monthly gross proceeds for which he or she is liable for the tax. The operator shall report any other information about the take-in-kind producer as the department may reasonably require. The take-in-kind producer shall be responsible for reporting and remitting the tax levied by this chapter on the take-in-kind volumes.
(h) The tax computed under this article shall become due and payable in the same manner as the tax computed under Article 1 of this chapter and the tax shall constitute a first lien upon the offshore production so produced when in the possession of the producer or any purchaser of the oil or gas. In the event the person in charge of production operations fails to pay the tax, then the department may proceed against the producer or the purchaser to collect the tax.
","history":"(Act 2009-147, p. 284, §4.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38728,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37884,"codeId":37801,"versionId":30592,"parentId":37797,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-20-23","shortTitle":"Section 40-20-23","catchLine":"Allocation and Distribution of Taxes.","title":"Section 40-20-23 Allocation and Distribution of Taxes.","sectionRange":null,"content":"(a) Ninety percent (90%) of the net amount of taxes collected by the department on oil or gas produced from submerged lands which are not deemed to be onshore lands for allocation and distribution purposes pursuant to subsections (d) or (e) shall be deposited to the State General Fund. The remaining ten percent (10%) of the taxes collected on oil or gas produced from submerged lands which are not deemed to be onshore lands for allocation and distribution purposes shall be allocated and distributed by the Comptroller to the county in which the oil or gas was produced for county purposes to be expended at the discretion of the county governing body.
(b) The net amount of taxes collected by the department pursuant to this article on oil or gas produced from submerged lands which are deemed to be onshore lands for allocation and distribution purposes pursuant to subsections (d) or (e) shall be allocated and distributed pursuant to Section 40-20-8, as if it was collected pursuant to Article 1 of this chapter on oil or gas produced from onshore lands.
(c) Of the taxes herein levied and collected by the department on oil or gas produced from submerged lands which are deemed to be onshore lands for allocation and distribution purposes pursuant to subsections (d) or (e), sixty-five percent (65%) of the net amount of the taxes collected shall be allocated and distributed as if the taxes were levied and collected at the rate of four percent (4%), for purposes of the allocations and distributions required under Section 40-20-8. The remaining thirty-five percent (35%) of the taxes collected on oil or gas produced from submerged lands which are deemed to be onshore lands for allocation and distribution purposes shall be allocated and distributed pursuant to Section 40-20-8, as if the taxes were levied and collected at a rate other than four percent (4%).
(d) For the purposes of this section, when part of the property within the drilling or production unit or within the unit area for any producing wells consists of submerged lands and part consists of lands other than submerged lands (herein called onshore lands), all of the following shall apply:
(1) Only that portion of production of oil or gas or both from the wells allocated under or pursuant to an order of the State Oil and Gas Board to the submerged lands shall be deemed to have been produced from submerged lands, regardless of where the actual wells from which the production was obtained are located.
(2) The portion of production allocated under or pursuant to an order of the State Oil and Gas Board to the onshore lands shall be deemed to have been produced from a well located on the onshore lands to which the production is allocated, and the portion of production allocated under or pursuant to an order of the State Oil and Gas Board to any onshore lands located within the police jurisdiction or the corporate limits of any municipality shall be deemed to have been produced from a well located within the corporate limits or police jurisdiction.
(3) If, because of common ownership or otherwise, no specific portion of the production from the wells has been separately allocated under or pursuant to an order of the State Oil and Gas Board to any or all of the onshore lands located within the drilling or production unit or within a designated tract in the unit area, then, for the purposes of this section, a portion of the production shall be deemed to have been allocated under or pursuant to an order of the State Oil and Gas Board to the onshore lands in question, such portion to be in the proportion that the acreage of the onshore land to which no specific portion of the production has been separately allocated bears to the total acreage included within the unit or designated tract, whichever is applicable.
(4) Any production not allocated to or deemed to have been allocated to the onshore lands shall be deemed to have been allocated under or pursuant to an order of the State Oil and Gas Board to the submerged lands.
(e) Anything in this section to the contrary notwithstanding, onshore lands shall mean all lands that are not submerged lands as defined in this chapter. Provided, however, if any submerged lands are located within the police jurisdiction or corporate limits of any municipality, those submerged lands shall, for the purposes of this section, be defined as, and deemed to be, onshore lands and not submerged lands.
(f) This section shall apply only to the allocation and distribution of taxes and shall not apply to the levy and collection of taxes. Nothing contained in this section shall be construed to affect in any way Section 40-20-2 or Section 40-20-21.
","history":"(Act 2009-147, p. 284, §4.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38729,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37885,"codeId":17694,"versionId":null,"parentId":17616,"effectiveDate":null,"supersessionDate":null,"type":"Article","displayId":"2","shortTitle":"Article 2","catchLine":"Mineral Documentary Tax.","title":"Article 2 Mineral Documentary Tax.","sectionRange":"§40-20-30 to §40-20-37","content":null,"history":null,"numChildren":8,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":38730,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37886,"codeId":17696,"versionId":14052,"parentId":17694,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-20-30","shortTitle":"Section 40-20-30","catchLine":"Definitions.","title":"Section 40-20-30 Definitions.","sectionRange":null,"content":"For the purpose of this article, the following terms shall have the respective meanings ascribed by this section:
(1) OIL, GAS AND OTHER MINERALS. Oil, gas, petroleum, hydrocarbons, distillate, condensate, casing-head gas, other petroleum derivatives and all other similar minerals of commercial value which are usually produced by the drilling, boring or sinking of wells.
(2) MINERAL ACRE and ROYALTY ACRE. The number of acres obtained by multiplying the aggregate acreage described in the instrument involved by the fractional interest leased or conveyed thereby.
(3) PRIMARY TERM. In connection with any instrument affected by this article shall mean the period of time that the estate created by such instrument shall endure under the terms thereof in the absence of production of oil, gas or other minerals in paying quantities, the carrying on of drilling or reworking operations for the production of such oil, gas or other minerals, force majeure or laws, rules or regulations, federal or state, preventing such drilling operations.
","history":"(Acts 1957, No. 261, p. 332, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38731,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37887,"codeId":17704,"versionId":14060,"parentId":17694,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-20-31","shortTitle":"Section 40-20-31","catchLine":"Levied; Applicability.","title":"Section 40-20-31 Levied; Applicability.","sectionRange":null,"content":"There is hereby levied and shall be paid and collected as herein set forth a documentary or transfer tax, to be known as the mineral documentary tax, upon the filing and recording of every lease and other writing hereafter executed whereby there is created a leasehold interest in and to any nonproducing oil, gas or other minerals in, on or under or that may be produced from any lands situated within the State of Alabama, or whereby any such interest is assigned or is extended beyond the primary term fixed by the original instrument, and upon every deed, instrument, transfer, evidence of sale or other writing whereby there is hereafter conveyed to a grantee or purchaser, or excepted or reserved to a grantor separately and apart from the surface, any interest in or right to receive royalty from any nonproducing oil, gas or other minerals in, on or under or that may be produced from any lands within the State of Alabama; provided, that the tax shall not apply to any mortgage or instrument creating a lien upon such interest, nor to the sale under foreclosure thereof.
","history":"(Acts 1957, No. 261, p. 332, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38732,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37888,"codeId":17714,"versionId":14063,"parentId":17694,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-20-32","shortTitle":"Section 40-20-32","catchLine":"Tax to Be a Lien; Amount of Tax.","title":"Section 40-20-32 Tax to Be a Lien; Amount of Tax.","sectionRange":null,"content":"Such tax shall be a lien upon the interest leased, assigned, conveyed, reserved, excepted or transferred, and the amount to be paid shall be determined as follows; provided, that the minimum tax shall be $1:
(1) Upon the filing and recording of each instrument creating, assigning or transferring a leasehold, or interest therein or any portion thereof, or conveying, transferring, excepting or reserving a mineral or royalty interest as above described, the primary term of which shall expire 10 years or less from the date of execution of the instrument, the tax shall be a sum equal to $.05 per mineral or royalty acre conveyed, leased, assigned, excepted, reserved or transferred therein.
(2) Such tax shall be $.10 per mineral or royalty acre if the primary term of such interest shall expire more than 10 years and not exceeding 20 years from the date of the execution of such instrument.
(3) Such tax shall be $.15 per mineral or royalty acre if the primary term of such interest may or shall extend more than 20 years from the date of the execution of such instrument.
","history":"(Acts 1957, No. 261, p. 332, §3.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38733,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37889,"codeId":17722,"versionId":14069,"parentId":17694,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-20-33","shortTitle":"Section 40-20-33","catchLine":"When and by Whom Tax Payable; Effect of Nonpayment.","title":"Section 40-20-33 When and by Whom Tax Payable; Effect of Nonpayment.","sectionRange":null,"content":"Such tax shall be payable by the grantee or grantees named or the beneficiary or real party in interest under such lease, deed, conveyance, transfer, assignment or other writing; except, that as to any exception or reservation creating any such interest the same shall be payable by the grantor or grantors in such instrument. Said tax shall be due and payable upon the filing of such instrument for record. Any probate judge who accepts or records such an instrument upon which the tax is not paid to him in the amount required herein shall be liable to the county for the amount of tax shown to have been due upon the instrument. The amount shall likewise constitute a lien upon the interest so conveyed, reserved or accepted by such instrument, collectible as are other delinquent taxes due the county. If an insufficient amount is paid by such tax, the filing and recording of the instrument shall nevertheless be good and valid for all purposes as now provided by statute and shall be a valid exemption from ad valorem taxes.
The probate judge shall collect the said tax, shall duly record the instrument and make the hereinafter required notation of tax payment.
","history":"(Acts 1957, No. 261, p. 332, §4; Acts 1961, No. 864, p. 1346, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38734,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37890,"codeId":17728,"versionId":14072,"parentId":17694,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-20-34","shortTitle":"Section 40-20-34","catchLine":"Tax Payable to Probate Judge; Entries on Instrument and Record.","title":"Section 40-20-34 Tax Payable to Probate Judge; Entries on Instrument and Record.","sectionRange":null,"content":"Such tax shall be paid to the probate judge of the county in which the land affected by the sale, lease or reservation or other instrument of such oil, gas or other minerals is situated, and the said judge shall stamp or write the name of the county and the amount of tax paid on the face of the instrument when filed for recording and shall show upon the face or margin of the record thereof the amount of tax paid.
","history":"(Acts 1957, No. 261, p. 332, §5; Acts 1961, No. 864, p. 1346, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38735,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37891,"codeId":17732,"versionId":14077,"parentId":17694,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-20-35","shortTitle":"Section 40-20-35","catchLine":"Tax to Be in Lieu of Ad Valorem Taxes; Exemption of Nonproducing Leasehold and Other Interests from Ad Valorem Taxes.","title":"Section 40-20-35 Tax to Be in Lieu of Ad Valorem Taxes; Exemption of Nonproducing Leasehold and Other Interests from Ad Valorem Taxes.","sectionRange":null,"content":"The mineral documentary tax levied above shall be in lieu of all ad valorem taxes and all nonproducing leasehold interests upon all oil, gas and other minerals in, on or under lands lying within the State of Alabama, created or assigned after October 12, 1957, and also all nonproducing interests in such oil, gas and other minerals, including royalty interests therein, hereafter conveyed to a grantee or purchaser or excepted or reserved to a grantor separately and apart from the surface shall be exempt from all ad valorem taxes levied on or after October 1, 1957, by the State of Alabama, or any county, municipality, school district, or other taxing district within the state or becoming a lien on or after said date. Any sale for taxes of the surface or of the remainder of the fee shall not in any manner whatsoever affect the interest or interests hereby exempted.
For the same purpose and with like effect there is hereby likewise exempted from such ad valorem taxation all such interests created prior to October 12, 1957, which are owned separately and apart from the surface; provided, that as a condition precedent to obtaining such exemption upon existing interests the then owner or owners thereof shall make application for exemption of the interest then owned by him or them as hereinafter provided and pay a sum equivalent to the tax herein levied by this article on instruments hereafter executed creating, transferring or reserving corresponding or similar interests. As to any existing interests, if any such sum is paid after October 1, 1957, then such exemption shall apply only to taxes becoming a lien after such sum is thus paid. The number of years remaining before the expiration of the primary term of such previously created mineral interest shall be considered as the primary term of such interest for the purpose of determining the amount of such tax.
","history":"(Acts 1957, No. 261, p. 332, §6; Acts 1961, No. 864, p. 1346, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38736,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37892,"codeId":17739,"versionId":14084,"parentId":17694,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-20-36","shortTitle":"Section 40-20-36","catchLine":"How Exemption Obtained Upon Existing Interests.","title":"Section 40-20-36 How Exemption Obtained Upon Existing Interests.","sectionRange":null,"content":"Application for such exemption upon existing interests shall be made to the probate judge of the county wherein the land lies in which such interest is owned, by filing application in triplicate with the said judge, which shall contain the following information:
(1) Name of applicant;
(2) Address of applicant;
(3) Complete description of land affected, including aggregate acreage;
(4) Fractional interest for which exemption is applied and nature of such interest;
(5) Recording data concerning the instrument creating the interest including grantor or lessor, grantee or lessee, date of instrument, book and page of record, and date of filing;
(6) Length of primary term;
(7) Recording data on instruments divesting original party of any interest, including subsequent assignments thereof in a portion of original interest therein conveyed;
(8) Number of mineral, royalty or lease acres on which exemption sought; and
(9) Amount tendered therewith.
Upon receipt of such application, accompanied by the sum shown therein, the probate judge shall give it a serial number and mark it filed, showing the date received. The judge shall make a notation on the face of the application and on the record of the instrument described in the application showing the date of payment, amount of tax paid and the serial number of the application. After such notation is made, the original application shall be returned to the applicant by mailing it to him at the address shown on the application or delivered otherwise to the applicant; the first copy of the application shall be retained by the judge as his permanent record, and the second copy of the application, together with a certificate of the amount of taxes paid thereon, shall be sent by the judge to the tax assessor of the county.
If it later is ascertained that an insufficient amount was paid with the application for the exemption provided herein, such exemption shall not be thereby rendered void, but the additional amount which should have been paid, together with a penalty of 25 percent and one percent interest per month thereon from the date of the application until paid shall be a lien on the interest exempted and a personal debt of the applicant collectible by civil action for appropriate personal judgment and to enforce the lien, which may be maintained by the county to which such sum should have been paid.
","history":"(Acts 1957, No. 261, p. 332, §7; Acts 1961, No. 864, p. 1346, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38737,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37893,"codeId":17746,"versionId":14090,"parentId":17694,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-20-37","shortTitle":"Section 40-20-37","catchLine":"Fees of Probate Judge; Disposition of Remainder of Tax.","title":"Section 40-20-37 Fees of Probate Judge; Disposition of Remainder of Tax.","sectionRange":null,"content":"From the taxes levied and collected under this article, there shall be paid into the county general fund, or to the judge of probate if he is on a fee basis, five percent as a cost of collection thereof. The remainder shall be distributed as follows: 35 percent to the county general fund; 35 percent to the county public school fund and 30 percent to the State General Fund. Such payment shall be made on or before the fifteenth day of the month next succeeding that in which collection may be made.
","history":"(Acts 1957, No. 261, p. 332, §8.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38738,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37894,"codeId":17753,"versionId":null,"parentId":17616,"effectiveDate":null,"supersessionDate":null,"type":"Article","displayId":"3","shortTitle":"Article 3","catchLine":"County Oil and Gas Severance Tax Trust Funds.","title":"Article 3 County Oil and Gas Severance Tax Trust Funds.","sectionRange":"§40-20-50","content":null,"history":null,"numChildren":1,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":38739,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37895,"codeId":17754,"versionId":14097,"parentId":17753,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-20-50","shortTitle":"Section 40-20-50","catchLine":"Collection of Severance Taxes; Deposit into Fund; Distribution of Investment Income; Trustees; Escrow Agents; Limitations.","title":"Section 40-20-50 Collection of Severance Taxes; Deposit into Fund; Distribution of Investment Income; Trustees; Escrow Agents; Limitations.","sectionRange":null,"content":"Any laws or parts of laws to the contrary notwithstanding, any annual privilege tax levied upon persons engaging in the business of producing or severing oil or gas or other hydrocarbons from the soil or waters of this state measured by the gross value of such oil or gas or other hydrocarbons and which tax is applicable only in a particular county and under which collections were being made on January 1, 1987, or which shall hereafter be levied pursuant to legislative act, shall be continued and collected only as herein prescribed:
(1) All revenues collected from such local severance taxes shall, beginning the first day of the month following August 3, 1987, be paid into the general fund of the county exclusively for transfer and deposit into a trust fund hereby established until the total sum of $15,000,000 in severance tax revenues of the type described in this section, excluding any interest income on amounts deposited therein from such total sum, has been deposited into such trust fund. Upon the deposit into said trust fund of a county of a total of $15,000,000 in such severance tax revenues, any local law authorizing or levying such tax, including, without limitation, Act No. 2120, H. 2450, Regular Session 1971 (Acts 1971, Vol. V, p. 3399), shall stand repealed and no further taxes shall be levied thereunder. Any such local oil and gas severance tax revenues in excess of such $15,000,000 amount collected in any county after the time the total of such tax proceeds paid into such trust fund established hereby for such county shall reach $15,000,000, shall be refunded as promptly as shall be reasonably practicable to the payers thereof. The county governing body shall not be authorized to make any expenditure from any monies composing the corpus of said trust fund so long as it shall remain in existence. Said trust fund shall be designated in each county as the “county oil and gas severance tax trust fund,” and is hereinafter referred to as the “trust fund.”
(2) Commencing with the first year in which any trust fund provided for in this section shall receive deposits as required hereunder, and in each year thereafter, the county governing body shall take steps to ensure that the trust fund shall retain the total severance tax revenues paid therein plus ten percent of any net income or interest generated by the investment of such severance tax revenues, which sum shall be and become a part of the corpus of the trust fund. A sum, not to exceed 90 percent of the net income or interest thereby generated from said investments, shall be distributed quarterly, semiannually or annually, as designated by the trustees of the trust, to the general fund of the county for which a trust fund is established pursuant to this section.
(3) The county governing body shall constitute the trustees of the trust, provided, however, that the said governing body may in its discretion appoint one or more trustees or escrow agents for the trust, which trustees or escrow agents shall be trust companies or national or state banks having powers of a trust company within or without the State of Alabama. The trustees shall invest the corpus of the trust only in direct general obligations of, or obligations the payment of the principal of an interest on which are unconditionally and irrevocably guaranteed by, the United States of America. Provided, however, that notwithstanding any legal limitation that might otherwise be applicable, the trustees shall further have the authority in their discretion to invest such trust fund in certificates of deposit of any savings and loan associations or banks, whether federally or state chartered, whose principal office is located in this state, provided that such funds so invested are fully secured by pledges of securities of the type described in the immediately preceding sentence hereof.
(4) Upon the deposit into a trust fund established pursuant to this section of the total sum of $15,000,000 in severance tax revenues of the type described in this section, excluding any interest as income in such total sum, and the consequent repeal of the local law authorizing or levying such tax, the county governing body of a county for which a trust fund established hereunder shall be in existence shall be thereafter prohibited from levying or collecting, directly or indirectly, any local county severance tax of the type described in this section that was in existence prior to January 1, 1987, or that may be established hereafter, and any act authorizing such county oil and gas severance tax shall thereafter stand repealed.
","history":"(Acts 1987, No. 87-629, p. 1128, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38740,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37896,"codeId":17772,"versionId":null,"parentId":40,"effectiveDate":null,"supersessionDate":null,"type":"Chapter","displayId":"21","shortTitle":"Chapter 21","catchLine":"Public Utilities.","title":"Chapter 21 Public Utilities.","sectionRange":"§40-21-1 to §40-21-126","content":null,"history":null,"numChildren":5,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":38741,"hierarchyLevel":1,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37897,"codeId":17774,"versionId":null,"parentId":17772,"effectiveDate":null,"supersessionDate":null,"type":"Article","displayId":"1","shortTitle":"Article 1","catchLine":"General Provisions.","title":"Article 1 General Provisions.","sectionRange":"§40-21-1 to §40-21-34","content":null,"history":null,"numChildren":32,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":38742,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37898,"codeId":17776,"versionId":14113,"parentId":17774,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-1","shortTitle":"Section 40-21-1","catchLine":"Department of Revenue to Assess All Property; Applicability of Chapter.","title":"Section 40-21-1 Department of Revenue to Assess All Property; Applicability of Chapter.","sectionRange":null,"content":"It shall be the duty of the Department of Revenue to assess for taxation all property of all railroad companies, street and suburban railroad companies or persons or companies operating railroad or street railroads, or suburban railroads or sleeping cars in this state; all express companies, including railroad companies doing an express business and all telephone and long distance telephone and all telegraph companies, person or persons doing an express, telephone or telegraph business; all persons, firms, or corporations doing a gas business, transporting gas or furnishing gas, natural, manufactured or by-product, in or through pipes or in drums, tubes, cylinders, or by any other method; all water, electric light or power, hydroelectric power companies, steam heat, refrigerated air, dockage or cranage, toll roads, toll ferries, railroad equipment, pipelines for transporting or furnishing natural, manufactured, or by-product gas, water, oil, gasoline, or other commodities of commerce, and the property of all public service or public utility corporations, and all property not required by law to be listed for taxation with the county tax assessor; and the owner, president, general manager, agent, trustee, receiver, or other person or persons having control of the company’s affairs in this state shall make returns of all property of said company located in this state to the Department of Revenue.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §142; Acts 1995, No. 95-515, p. 1037, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38743,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37899,"codeId":17784,"versionId":14124,"parentId":17774,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-2","shortTitle":"Section 40-21-2","catchLine":"Verified Statements to Be Filed.","title":"Section 40-21-2 Verified Statements to Be Filed.","sectionRange":null,"content":"Between January 1 and March 1 in each year, every company, corporation, association, and individual embraced within the provisions of Section 40-21-1, or coming otherwise within its scope and intent, shall make out and deliver to the Department of Revenue of Alabama a statement containing the information hereinafter prescribed, which statement shall be duly verified by the affidavit of one of the officers of the company, corporation or association or by the individual in whose behalf it is made.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §143.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38744,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37900,"codeId":17794,"versionId":14129,"parentId":17774,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-3","shortTitle":"Section 40-21-3","catchLine":"Reports of All Property Required.","title":"Section 40-21-3 Reports of All Property Required.","sectionRange":null,"content":"Every person, firm, or corporation whose property is required by this title to be assessed for taxation by the Department of Revenue and not herein otherwise specifically required to make reports to the said department shall, on or before March 1 of each year, make a report of all its property of every nature and character whatsoever and such other and further information upon such forms and in such manner as may be required by the Department of Revenue.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §144.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38745,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37901,"codeId":17800,"versionId":14134,"parentId":17774,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-4","shortTitle":"Section 40-21-4","catchLine":"Detailed Requirements of Reports.","title":"Section 40-21-4 Detailed Requirements of Reports.","sectionRange":null,"content":"Each such report shall show the following items and particulars as the same stood on the next preceding October 1, together with any other facts or information that may be called for by said Department of Revenue:
(1) The name and principal place of business of the company, corporation, association, or individual in whose behalf the statement is made and the character of the business engaged in;
(2) If a company, association or corporation, the state, or government under the laws of which it was incorporated or authorized to do business, the date of original organization, the date of reorganization, consolidation, or merger and the purpose of its incorporation as expressed in its charter or articles of association;
(3) The place where all books, papers, and accounts are kept, and the names and post-office addresses of the president, secretary, treasurer, superintendent, general manager, general counsel, directors, and all other general officers thereof;
(4) The location of its principal office, the total amount and any kind of business done by it in this state and the total gross receipts derived from its business in this state, including a due proportion of its interstate business, if it has done any business of that character, and its total gross receipts from business done everywhere;
(5) Its total authorized capital stock showing the number of shares of common stock authorized, issued, and outstanding in the hands of the public and in the company’s treasury, separate from its preferred stock, and the par or face value of each of such shares;
(6) Its total authorized preferred stock, showing each issue separately and setting out each issue to show the number of shares authorized, issued, and outstanding in the hands of the public and in the company treasury and the rate of interest each issue bears;
(7) The par value and the market or actual value of each issue of common stock and the dividends paid and the par value and market or actual value of each issue separately of preferred stock and interest paid on each issue. If the common or preferred stock is issued without par value, then the number of shares authorized, issued, and outstanding in the hands of the public and in the company treasury must be shown giving the number of shares of each class separately and showing the amount received for the common stock and the market or actual value thereof, and the amount received for each issue of preferred stock and the market or actual value of each such issue and in addition thereto must be shown for each of the issues separately the average market or actual value during the next preceding 12 months. If 25 percent or more of the common stock is held by any one person, firm, or corporation, the number of shares, name, address, relation, and percent of control of the person, firm, or corporation holding such stock must be given. If 25 percent or more of the total number of shares of the several issues of preferred stock is held by one person, firm, or corporation, the number of shares, name, address, and relation of the person, firm, or corporation holding such stock must be given;
(8) A statement of each and every lien, mortgage, and other charge upon the whole or any part of the property of said company, corporation, or association, or individual, and a detailed statement of all series of bonds, debentures, and other securities forming a part of its funded debt, with date of issue, maturity, and rate of interest, together with a statement of the property encumbered or charged thereby, and of the total amount of unpaid debts secured by each mortgage, lien, or charge, and of the interest charged thereon, and to what extent interest has been paid, and the true and fair value of every such debt. A statement of the gross income and earnings for the preceding fiscal year of the person, firm, corporation, or association, including therein all interests on investments and all rents, profits, revenues, and receipts from every source whatsoever, and a statement of the income used for repairs and for betterments and the amount used for extension in this state; the amount of income paid in dividends on common stock and amount paid as interest specifying the amount of interest paid on each issue of preferred stock and upon each issue of bonds, or other forms of indebtedness, the amount set aside for depreciation, for obsolescence, for retirements, and the amount passed to surplus;
(9) A statement of the expense for the preceding fiscal year of the person, firm, corporation, or association, giving in detail the expense or other information of the different units, departments or subdivisions, taxes paid, itemized according to assessments, levies, or charges by the state, its counties, municipal corporations, school districts, or other taxing districts and to other states and to the federal government, on forms furnished by or in the manner required by the department;
(10) If a person, firm, or corporation by this title required to make return to the Department of Revenue keeps its records on a calendar year basis or on a fiscal year basis other than from October 1 to September 30, it may make return of its financial matters required by this title on the basis of the calendar year or on the basis of its fiscal year that ends nearest to October 1, stating in each case the period covered; and
(11) If the person, firm, or corporation does business in other states, then, in addition to the items called for in this chapter with respect to this state, the same items shall also be shown for the business or system as a whole. If any item called for in this section is prorated or allocated to this state, the reason for such proration or allocation and the method so used shall be given.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §145.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38746,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37902,"codeId":17805,"versionId":14139,"parentId":17774,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-5","shortTitle":"Section 40-21-5","catchLine":"Reports of Individuals or Associations Not Incorporated.","title":"Section 40-21-5 Reports of Individuals or Associations Not Incorporated.","sectionRange":null,"content":"Whenever any person or association of persons, not being a corporation and having no capital stock, shall engage in this state in any character of business embraced within the provisions of this chapter, the capital and property, or the certificate or other evidence of the rights or interest of the person engaged in such business shall be deemed and treated as the capital stock of such persons or association of persons for the purpose of taxation and for all purposes under this title and shall be estimated and valued, and the intangible property values thereof, when ascertained, shall be apportioned and distributed and assessed and taxed under the provisions hereof in like manner as if such person or association of persons were a corporation, and each such person or association of persons shall annually, within the time and the manner provided in this chapter, make the statements and reports and give the information required by this chapter of the aforesaid corporations, companies and associations and shall be subject to all the penalties and to all the terms and provisions of this chapter.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §146.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38747,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37903,"codeId":17812,"versionId":14146,"parentId":17774,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-6","shortTitle":"Section 40-21-6","catchLine":"Factors to Be Considered in Determining True Value of Entire Property.","title":"Section 40-21-6 Factors to Be Considered in Determining True Value of Entire Property.","sectionRange":null,"content":"Insofar as the other evidence and information adduced before said department does not make it appear to said department improper or unjust for it to do so, the said department shall, in fixing the true value of the entire property, tangible and intangible, of any company, corporation, association or individual embraced within the provisions of this title, consider as a factor the average net earnings, averaged over a period of five years, and also take as a basis therefor the aggregate average market value or true value for the preceding year of all its shares of stock and add thereto the average market or true value for the preceding year of its entire indebtedness secured by any mortgage, lien or other charge upon its property and assets, and the sum or sums so produced shall be treated and considered a factor in ascertaining the true value of said entire property, tangible and intangible, for purpose of ad valorem taxation. The department may likewise consider the value of the individual units and items of property and the sum of the values of such units or items.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §147.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38748,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37904,"codeId":17817,"versionId":14151,"parentId":17774,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-7","shortTitle":"Section 40-21-7","catchLine":"Reports of Railroad Companies.","title":"Section 40-21-7 Reports of Railroad Companies.","sectionRange":null,"content":"On or before March 1 of each year, the president, secretary, or auditor of any railroad company whose track or roadbed or any part thereof is in this state or, if such railroad is in the hands of a receiver or trustee, such receiver or trustee shall, under oath, make to the Department of Revenue a return in writing of the total length of such railroad, including the right-of-way, roadbed, side tracks and main tracks in this state, specifying the total length in this state and in each county, city or incorporated town, school district, or other tax district in this state in which a special school tax or other tax is levied; and also of the number of locomotive engines or other units of motive power, and passenger, freight, construction, and other cars of such company for the entire system and the number of each allocated to this state, stating the method used in so allocating, and the location and a description of all other property owned by such company in the State of Alabama, and of the average amount of merchandise and supplies kept or carried on trains for sale or other disposition for profit by such companies to employees or other persons in this state for the year next preceding the return.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §148.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38749,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37905,"codeId":17823,"versionId":14157,"parentId":17774,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-8","shortTitle":"Section 40-21-8","catchLine":"Returns of Telegraph and Telephone Companies Generally.","title":"Section 40-21-8 Returns of Telegraph and Telephone Companies Generally.","sectionRange":null,"content":"The president, secretary, auditor, or managing agent in this state of every telegraph or telephone company, whose line or any part thereof is located within this state, must annually, on or before March 1 of each year, make under oath to the Department of Revenue a return, in such reasonable detail as may be prescribed by such department, on all the property belonging to such company in this state and connected with the business, specifying the several counties in which such property is situated and the items of property situated in each of such counties, towns and school districts.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §149.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38750,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37906,"codeId":17831,"versionId":14163,"parentId":17774,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-9","shortTitle":"Section 40-21-9","catchLine":"Details of Returns of Electric Power and Telegraph and Telephone Companies.","title":"Section 40-21-9 Details of Returns of Electric Power and Telegraph and Telephone Companies.","sectionRange":null,"content":"Every electric power, hydroelectric power, every telegraph, telephone, or long distance telephone company shall include in each return made by it the following particulars:
(1) The number of miles of right-of-way in the state belonging to such company and the number of miles of right-of-way along public roads or on government land or on or along the streets of incorporated cities and towns used by such company, showing the number of miles of each class separately and by what authority such use is granted;
(2) The total length of all transmission lines or telephone or telegraph lines, stated by the number of miles of poles and the number of miles of towers, whether poles are treated or untreated, and description of towers as to size and height, the number of miles of wire, of each material constructed, stated according to the number of miles of each class and size of wire, the number of miles of conduit or of cable, stated according to the number of pairs of wire or other capacity, and the voltage capacity of each electric transmission line shall be stated;
(3) The total length of all lines of said company, whether within or outside of the state; and
(4) The total length of so much of said lines as are within this state and the length of its lines in each of the counties, cities, towns, school districts, or other tax districts of this state into or through which its lines extend, stated according to the number of miles of towers, the number of miles of poles, the number of miles of each class of wire, and the number of miles of each size of conduit or cable. Electric transmission lines shall, in addition to the foregoing state their mileage according to the voltage capacity of each line.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §150.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38751,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37907,"codeId":17838,"versionId":14169,"parentId":17774,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-10","shortTitle":"Section 40-21-10","catchLine":"Details of Statements of Water, Gas and Pipeline Companies.","title":"Section 40-21-10 Details of Statements of Water, Gas and Pipeline Companies.","sectionRange":null,"content":"Every water company, gas company and every pipeline company shall show in each statement made by them the following particulars, which are in addition to the foregoing requirements:
(1) The total length of all lines of said company, whether within or outside of the state, the total length of each size pipe and of what material each is constructed;
(2) The total length of so much of each of said lines as are within this state;
(3) The length of each size and kind of lines in each of the counties, cities, towns, school districts, or other tax districts of this state into or through which each size and kind of lines extend, or in which its distribution system, holders, reservoirs, standpipes, drums, tubes, cylinders, meters, services, or other means of storage or distribution are located or used; and
(4) The number of miles of right-of-way in the state belonging to such company and the number of miles of right-of-way along public roads or on government land or on or along the streets of incorporated cities and towns used by such company, showing the number of miles of each class separately and by what authority such use is granted.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §151.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38752,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37908,"codeId":17842,"versionId":14172,"parentId":17774,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-11","shortTitle":"Section 40-21-11","catchLine":"Sleeping, Parlor, Dining and Chair Car Companies.","title":"Section 40-21-11 Sleeping, Parlor, Dining and Chair Car Companies.","sectionRange":null,"content":"Every sleeping car company, parlor or palace car company, dining car company, chair car company, or equipment company operating cars of any kind for carrying passengers or serving meals over any railroad in this state shall also, in addition to the said foregoing requirements, show by each of its statements:
(1) The total mileage traveled by the cars of said company during the next preceding 12 months, whether within this state or beyond its borders, and
(2) The total mileage traveled by such cars within the state during the same period.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §152.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38753,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37909,"codeId":17846,"versionId":14175,"parentId":17774,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-12","shortTitle":"Section 40-21-12","catchLine":"Description of Real Property, Fixtures and Other Tangible Property Within State.","title":"Section 40-21-12 Description of Real Property, Fixtures and Other Tangible Property Within State.","sectionRange":null,"content":"All railroad, electric, hydroelectric, telephone and telegraph companies, and all water, gas, street, and interurban railroad companies and all docks, terminals, toll road, toll bridge, and ferry companies and all other public utility companies must make return of each item of real estate describing by metes and bounds and giving number of acres in each tract or by lot and block number, if in incorporated cities or towns, and of the improvements thereon, and all the buildings and structures, stating material of which constructed, and all machinery, fixtures, and appliances, and all other tangible property and assets owned and assessed, or liable to assessment for the same year, within this state, and the location and assessed value thereof, and the county, city, town, or school district, or other tax district wherein the same are assessed for taxation for state, county, municipal, school, or other tax district purposes, or are liable to assessment, and whether or not they are specifically used in business of the company making the return.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §153.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38754,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37910,"codeId":17848,"versionId":14178,"parentId":17774,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-13","shortTitle":"Section 40-21-13","catchLine":"Total Length of Railroad Lines.","title":"Section 40-21-13 Total Length of Railroad Lines.","sectionRange":null,"content":"Every railroad company shall, in addition to the foregoing requirements, show in each statement made by it the total length of all lines of said company, whether within or outside of this state.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §154.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38755,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37911,"codeId":17853,"versionId":14182,"parentId":17774,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-14","shortTitle":"Section 40-21-14","catchLine":"Statement of Property Outside State.","title":"Section 40-21-14 Statement of Property Outside State.","sectionRange":null,"content":"The statement of every public utility shall include a brief description of each tract of land and the improvements thereon, and of the buildings, structures, machinery, fixtures, and appliances and all other tangible property and assets having a fixed situs outside of the state, and the location of each item of such property, the purpose for which it is used, whether or not it is specifically used in the business of the company, corporation or association, or individual in whose behalf the report is made, its true and fair value, the sum of the value at which it is assessed for taxation and the locality in which it is assessed.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §155.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38756,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37912,"codeId":17857,"versionId":14186,"parentId":17774,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-15","shortTitle":"Section 40-21-15","catchLine":"Statements of Express Companies.","title":"Section 40-21-15 Statements of Express Companies.","sectionRange":null,"content":"Every express company shall also, in addition to the foregoing requirements, show:
(1) Its total gross receipts from all business done under its charter, whether within this state or outside thereof, during the next preceding 12 months;
(2) Its total gross receipts within this state for the same kind of business done during the same period, including a due proportion of receipts from interstate business; and
(3) Its total gross receipts in each county or town in this state for the same kind of business done during the same period.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §156.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38757,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37913,"codeId":17861,"versionId":14190,"parentId":17774,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-16","shortTitle":"Section 40-21-16","catchLine":"Endorsement of Receipt of Statements; Requiring Additional Information.","title":"Section 40-21-16 Endorsement of Receipt of Statements; Requiring Additional Information.","sectionRange":null,"content":"The Department of Revenue of Alabama shall receive all such statements offered to it under the provisions of this chapter, shall endorse upon each the date upon which it was received and sign the endorsement officially. It shall examine the statements as soon as may be practicable; and, if any of them are found to be insufficient or if said department shall believe other or further information to be necessary, it shall at once demand such additional statements and information as it may think proper.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §157.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38758,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37914,"codeId":17865,"versionId":14193,"parentId":17774,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-17","shortTitle":"Section 40-21-17","catchLine":"Determination of Value; Assessment of Property; Penalizing Delinquent Taxpayer; Apportionment of Assessed Value; Report to Tax Assessor.","title":"Section 40-21-17 Determination of Value; Assessment of Property; Penalizing Delinquent Taxpayer; Apportionment of Assessed Value; Report to Tax Assessor.","sectionRange":null,"content":"The department shall proceed forthwith to examine the returns made by all persons, firms, and corporations required by law to make the same and also such information as the department may have obtained in addition thereto, shall determine the valuation of the different items of property required to be returned to it and shall assess such property for taxation at 30 percent of its reasonable value; and, in case no return has been made by or on behalf of such person, firm, or corporation on or before March 1 in each year, the department may add to the assessment which it makes against such person, firm, or corporation a penalty not exceeding 10 percent of the assessment as made therefor. The assessment herein required to be made shall be completed on or before July 1, or as soon thereafter as practicable, and reported to the tax assessor of every county in which any part of said tangible personal property is taxable under the provisions of this title. The report to the tax assessor shall contain a description of all property included in the assessment, the assessed value thereof, and an apportionment of the assessed value of such property to the county, to each municipality, to each special school district, and other districts levying a district tax within said county, with the name and residence or place of business of the owner thereof and all other information necessary to enable the tax assessor to set up such tax assessment upon the assessment books.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §158; Acts 1945, No. 403, p. 642; Acts 1992, No. 92-186, p. 349, §60.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38759,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37915,"codeId":17867,"versionId":14196,"parentId":17774,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-18","shortTitle":"Section 40-21-18","catchLine":"Evidence and Witnesses Before Department.","title":"Section 40-21-18 Evidence and Witnesses Before Department.","sectionRange":null,"content":"The Department of Revenue shall carefully examine and consider said statements and information and shall hear evidence and secure further and additional information as far as may be in its power, whenever it may deem it necessary to do so, to show the true value of properties of such corporations, associations, companies, and individuals and the true value of that portion thereof which is situated within this state and within the respective counties, cities, towns, or other tax districts in this state; and each interested company, corporation, association, or individual may appear before said department and introduce material and relevant testimony before the same touching the true value of said property within this state and the apportionment thereof. From these statements, evidence and information adduced before it, the Department of Revenue shall ascertain, fix, and determine the true value of such property and of the portion thereof which is situated within this state and the respective value of the several portions within the different counties and cities, towns and school districts, or other tax districts having a special assessment in this state, in which such portions are taxable; and for that purpose said department may require and compel by subpoenas to be issued by it any person or persons, or the officers and agents, or any of them, of any company, corporation, or association embraced by the provisions of this title to appear before it with such books, papers, documents, and information as the department may require and to submit themselves to examination by said department, and it shall have all the powers with respect thereto conferred upon it by this title.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §159.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38760,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37916,"codeId":17872,"versionId":14199,"parentId":17774,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-19","shortTitle":"Section 40-21-19","catchLine":"Compelling Production of Records, Documents, Etc.; Requiring Attendance of Officers and Individuals.","title":"Section 40-21-19 Compelling Production of Records, Documents, Etc.; Requiring Attendance of Officers and Individuals.","sectionRange":null,"content":"If at any time after March 1 of any year the Department of Revenue shall not have in its possession satisfactory data upon which to base an estimate of the value of the property with the assessment of which it is charged or from any other cause it is not able to make or complete any assessment, it shall have power to call upon any officer or agent of any person, firm, or corporation, or upon any receiver or trustee in charge of the property of any person, firm, or corporation for any records, books, or documents of any description pertaining to the business of any such person, firm, or corporation for the answers to any interrogatories which it may deem necessary to an intelligent discharge of its duties; and it shall also have power to require the attendance of any officer of any corporation or any other person where the testimony of such officer or person may to it seem material.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §160.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38761,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37917,"codeId":17876,"versionId":14203,"parentId":17774,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-20","shortTitle":"Section 40-21-20","catchLine":"What Considered in Arriving at Taxable Value of Property.","title":"Section 40-21-20 What Considered in Arriving at Taxable Value of Property.","sectionRange":null,"content":"In arriving at the value of such taxable property, whenever used in this chapter or whenever required, the Department of Revenue, the tax assessors, deputy tax assessors, board of equalization, or other assessing authorities and the courts shall be authorized to consider and may consider original costs, reproduction cost new less depreciation, recent sales of contiguous or similar property, the nature of the property, its location, whether in town, city or county, whether it is vacant or occupied, its proximity to local advantages, its use, its fitness for the use to which employed, or its fitness for other uses, the quality of soil, its growth of timber, its mines, minerals, coal beds, oil or gas deposits, the amount and character of improvements thereon, the amount of insurance carried on each item of property, the gross and net income received therefrom during the year or years preceding the date of assessment, the market value of its shares of stock or bonds, or both, if sold in the open market, or if not quoted in the open market, the value thereof, the amount of any bonded indebtedness, loans or mortgages upon it and any and all evidence and information that may be adduced before the assessing authorities or which he or it may procure, shedding light on the value of such property. In assessing any property where such information is obtainable and has or may have any bearing on the values of such property, the tax assessing authorities shall consider the average market or actual value of the stock and bonds of such companies during the preceding year and also shall take into consideration the estimated investment as returned by the duly authorized officer or employee of such company to the Public Service Commission or to the Interstate Commerce Commission, Tennessee Valley Authority, Reconstruction Finance Corporation or Railroad Credit Corporation, or other similar commissions, agencies, or associations of the United States or this state, or value stated in folders, schedules, or prospecti. Any valuation made for rate-making or other purposes of the Public Service Commission of the state, the Interstate Commerce Commission, or other state or governmental bodies shall also be considered.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §161.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38762,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37918,"codeId":17886,"versionId":14210,"parentId":17774,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-21","shortTitle":"Section 40-21-21","catchLine":"Franchises and Intangible Property Subject to Taxation.","title":"Section 40-21-21 Franchises and Intangible Property Subject to Taxation.","sectionRange":null,"content":"There shall be subject to taxation in this state the franchises or intangible property and assets of each and every corporation, whether organized under the laws of this state or of any other state or government, and of each and every individual, association, or partnership, or company engaged as a common carrier, wholly or partly in this state, in the business of transporting freight of any description or passengers, or both, over any railroad, including street railroads, or of operating any cars of any kind over any railroads for the transportation of passengers or of property of any kind for others or for the public, including sleeping cars, parlor or palace cars, chair cars, equipment cars of any kind, or engaged in the business of maintaining or operating for gain any telegraph or telephone lines, plant or business, or any plant or business for the production, transportation, piping, distribution, or sale of natural gas, manufacture, distribution, or sale of gas, by or through pipes, drums, tubes, cylinders, or other containers or conveyances, or for manufacture, distribution, or sale of electricity, electric light, electric power, water, steam heat, and refrigerated air, or other similar substance, including the piping of oil or gasoline, by means of wires, pipes, or conduits constructed, operated, or maintained on, over, under, or through any territory or any street, alley, or highway in this state, or in the business of operating for gain any dockage, wharfage, canal, freight, or passenger depots, boats, barges, station, or terminals, toll bridges, and toll ferries, or engaged in any business which may be dependent upon the grant of public powers or privileges, or which may involve the operation of any public utility; and of each and every individual, association, partnership, company, or corporation which has and exercises, under authority granted by charter, statute, or other provision of law, whether of this state or any political subdivision thereof, or of any other state or government, any special or exclusive privilege, franchise, or function which is or may be dependent upon the grant of public power or privilege, or which involves the operation of any public utility.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §162.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38763,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37919,"codeId":17894,"versionId":14216,"parentId":17774,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-22","shortTitle":"Section 40-21-22","catchLine":"Proportion of Value or Receipts Within State to Total Value or Receipts Forms Basis of Tax Value.","title":"Section 40-21-22 Proportion of Value or Receipts Within State to Total Value or Receipts Forms Basis of Tax Value.","sectionRange":null,"content":"Where the person, association, company, or corporation operates a water system, express business, electric property, toll bridge, toll ferry, street, or interurban railroad or railroad or car line of any kind, telegraph or telephone line, pipeline, gas line, or gas distributing system of any kind, docks or terminal companies or other public utilities, the lines or properties of which extend beyond the state, there shall also be deducted from the true value of the entire property, tangible and intangible, ascertained as above provided, the market or true value ascertained from the information furnished by said statements, if the value thereof is given in said statements, of all real and personal property of said person, association, company, or corporation not specifically used in its business, and the remainder shall be treated as the true value of all its property, tangible and intangible, actually used in its business. The Department of Revenue shall then ascertain and fix the value of the total property, tangible and intangible, in this state by taking such proportion of the value of the entire property, tangible and intangible, of such persons, association, company, or corporation which is specifically used in its business, ascertained as provided by this chapter, as its total lines or business within this state bear to the total lines or business both inside and outside this state, or as its total receipts from within this state bear to its total receipts from both within and without the state. From the entire value of the property within this state, tangible and intangible, when ascertained as above provided, there shall be deducted the total value of the entire real and personal property of said person, association, company, or corporation in this state, and 30 percent of the residue and remainder of value shall be by the said Department of Revenue fixed and determined as the true value for taxation of the franchise or intangible property of such person, association, company, or corporation so operating said water system, express business, electric property, toll bridge, toll ferry, street or interurban railway, railroad, car line, telegraph line, telephone line, pipeline, gas line, or gas distributing properties, docks or terminal companies, or other public utilities made subject to taxation by the provisions of this title.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §163.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38764,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37920,"codeId":17899,"versionId":14220,"parentId":17774,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-23","shortTitle":"Section 40-21-23","catchLine":"Notice of Valuation Sent by Department.","title":"Section 40-21-23 Notice of Valuation Sent by Department.","sectionRange":null,"content":"After computing the valuation of the tangible and intangible property of a public utility taxpayer, the Department of Revenue shall notify the taxpayer and assess such value in accordance with the procedures set forth in Chapter 2A of this Title 40.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §164; Acts 1992, No. 92-186, p. 349, §61.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38765,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37921,"codeId":17906,"versionId":14227,"parentId":17774,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-25","shortTitle":"Section 40-21-25","catchLine":"Determining Tax Value of Franchises and Intangibles.","title":"Section 40-21-25 Determining Tax Value of Franchises and Intangibles.","sectionRange":null,"content":"From 30 percent of the value of said entire property, tangible and intangible, thus ascertained, there shall be deducted the assessed value of the entire tangible real and personal property of such persons, association, company, or corporation, and the remainder of the true value shall by said Department of Revenue be fixed and determined as the true value for taxation of the franchise, or intangible properties owned and held by said persons, association, company, or corporation and made subject to taxation by the provisions of this title, where the business and property of such persons, association, company or corporation is within this state.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §166.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38766,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37922,"codeId":17912,"versionId":14232,"parentId":17774,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-26","shortTitle":"Section 40-21-26","catchLine":"Local Taxes on Franchises and Intangibles.","title":"Section 40-21-26 Local Taxes on Franchises and Intangibles.","sectionRange":null,"content":"Every individual, association, partnership, company, and corporation engaged in any business embraced or set out in the preceding sections shall, in addition to the ad valorem taxes on the tangible property which are now imposed upon them by law, annually pay to the state a tax for each year on their franchises or intangible property and assets and shall pay local taxes thereon to each county and municipal corporation, school district and other tax district in which their business is or shall hereafter be carried on. Said tax shall be at the same rate as the tax on tangible property, shall be and become due and delinquent at the same time as the taxes on tangible property, shall be payable and collected in the same manner and shall be assessed and levied in the manner herein provided. The place or places where such local taxes on such property are to be paid and the manner of the apportionment of the same in cases where more than one jurisdiction is entitled to a share of such tax shall be determined and the valuation of such property for taxation shall be ascertained in accordance with the provisions of this title.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §167.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38767,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37923,"codeId":17915,"versionId":14234,"parentId":17774,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-27","shortTitle":"Section 40-21-27","catchLine":"Apportionment of Local Taxes.","title":"Section 40-21-27 Apportionment of Local Taxes.","sectionRange":null,"content":"The Department of Revenue shall apportion the value of such franchise or intangible property thus ascertained as in this title provided among and between the counties and cities, towns, school districts, or other tax districts having a special assessment, in which such person, association, company, or corporation does business, in proportion to the amount of business done in and receipts derived from each locality, except in case of a railroad or railway company, which apportionment shall be on single track main line basis, telephone or telegraph companies and electric power companies on pole or wire mileage, pipelines and car companies other than express companies on mileage basis.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §168.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38768,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37924,"codeId":17921,"versionId":14239,"parentId":17774,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-28","shortTitle":"Section 40-21-28","catchLine":"Entry and Collection of Local Taxes.","title":"Section 40-21-28 Entry and Collection of Local Taxes.","sectionRange":null,"content":"The said property shall thereupon be entered by the county tax assessor and the local authorities of such city or town for taxation in like manner as other property and shall be taxed, and the taxes thereon shall be collected as in the case of other property.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §169.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38769,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37925,"codeId":17928,"versionId":14247,"parentId":17774,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-29","shortTitle":"Section 40-21-29","catchLine":"Stockholders Not Required to List Shares or Pay Ad Valorem Taxes Thereon.","title":"Section 40-21-29 Stockholders Not Required to List Shares or Pay Ad Valorem Taxes Thereon.","sectionRange":null,"content":"Repealed by Act 99-665, 2nd Sp. Sess., § 9. As to effective date, see the Code Commissioner’s Notes in the code supplement.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §170.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38770,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37926,"codeId":17936,"versionId":14255,"parentId":17774,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-30","shortTitle":"Section 40-21-30","catchLine":"Description of Franchises and Intangibles.","title":"Section 40-21-30 Description of Franchises and Intangibles.","sectionRange":null,"content":"In any assessment by a state, county, or municipal authority of the franchise or intangible property of any person, association, company, or corporation subject to the provisions of this title, it shall be sufficient to describe the franchise or intangible property herein made subject to taxation on the assessment books or rolls as intangible property in (here give name of county, city, town, school district or other tax district) of the franchise or intangible tax of (here give name of owner of such franchise or intangible property).
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §171.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38771,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37927,"codeId":17943,"versionId":14260,"parentId":17774,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-32","shortTitle":"Section 40-21-32","catchLine":"Procuring Information from Other Sources When Taxpayer Fails to Comply.","title":"Section 40-21-32 Procuring Information from Other Sources When Taxpayer Fails to Comply.","sectionRange":null,"content":"If any person, association, company or corporation embraced within the provisions of this chapter shall fail to make the returns and statements, or any of them, required by the provisions of this chapter, or to furnish any other information lawfully required of it within the time limited, the Department of Revenue must procure the necessary information from some other sources upon which to base an ascertainment of the values of the tangible and intangible property or franchise of such person, association of persons, company, or corporation, and shall proceed to ascertain the value of such property.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §173.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38772,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37928,"codeId":17949,"versionId":14265,"parentId":17774,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-33","shortTitle":"Section 40-21-33","catchLine":"Duties of Receivers, Assignees or Trustees in Bankruptcy.","title":"Section 40-21-33 Duties of Receivers, Assignees or Trustees in Bankruptcy.","sectionRange":null,"content":"If the property of any person, association, company, or corporation shall be in the hands of any receiver, assignee, trustee in bankruptcy or other person holding under any court, or for the benefit of any creditor or creditors, then the statements, reports, information, books, and papers aforesaid shall be furnished by said receiver, assignee, trustee or other person, or by some officer or agent acting under him, in the same manner and to the same extent as is hereinbefore provided in cases where the individual or the corporation, company or association is in possession.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §174.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38773,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37929,"codeId":17954,"versionId":14269,"parentId":17774,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-34","shortTitle":"Section 40-21-34","catchLine":"Report of Commission to Assessors; Entries by Assessors.","title":"Section 40-21-34 Report of Commission to Assessors; Entries by Assessors.","sectionRange":null,"content":"(a) The Department of Revenue, after having first determined and fixed the true value of any property within this state of individuals, companies, corporations, and associations embraced within and in accordance with the provisions of this chapter, shall annually on or before July 1, or as soon thereafter as practicable, report to the tax assessor of every county and to the proper local authorities of each municipality in this state in which any part of said property is taxable hereunder, giving a general description of the property, the value of such property apportioned to said county and to said municipality, school district, or other district having a special assessment and the name and residence or place of business of the owner and all other necessary particulars.
(b) The assessor must enter in the book of assessments, in addition to the assessment of other real estate or personal property to be assessed as other taxable property owned by private citizens of his county, the property with description and value as reported to him by the Department of Revenue.
(c) The Department of Revenue shall also send to the owner or operator of such property so assessed a copy of its notification to the tax assessor touching assessment.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §175.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38774,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37930,"codeId":17975,"versionId":null,"parentId":17772,"effectiveDate":null,"supersessionDate":null,"type":"Article","displayId":"2","shortTitle":"Article 2","catchLine":"License Taxes.","title":"Article 2 License Taxes.","sectionRange":"§40-21-50 to §40-21-64","content":null,"history":null,"numChildren":12,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":38775,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37931,"codeId":17978,"versionId":14291,"parentId":17975,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-50","shortTitle":"Section 40-21-50","catchLine":"Levied Generally.","title":"Section 40-21-50 Levied Generally.","sectionRange":null,"content":"For each person operating a public utility, such as a street railroad or interurban railroad operated by electricity or other motive power, waterworks, gas company, pipeline company for transporting or carrying gas, oil, gasoline, water or other commodities, gas distributing companies, whether by means of pipeline or by tanks, drums, tubes, cylinders or otherwise, heating companies or other public utility, except electric, hydroelectric, telephone or telegraph companies, railroad or sleeping car companies and express companies which are otherwise licensed, shall pay to the state a license tax equal to two and two-tenths percent on each $1 of gross receipts of such public utility in this state for the preceding year. For the first year’s business, where an existing public utility is taken over, such license tax payable to the state shall be equal to two and two-tenths percent on each $1 of the gross receipts for the preceding year of the public utility taken over, less whatever sum the prior operators have paid as such license tax on the gross receipts for that year. Where no existing public utility is taken over, such license tax for the first year, as well as for the second year, shall be based on the first year’s business, but shall in no event be less than $100 for the first year’s business; provided, that where business is started after April 1 the payment shall be not less than $50. Any person establishing a new public utility shall pay to the state the sum of $100 where operation is begun between October 1 and April 1 and $50 when operation is begun after April 1 and shall also at the same time execute a bond, payable to the State of Alabama, to insure payment of whatever sum, in addition to the $100 or $50, which may be due when, at the end of the first year or if operation began after April 1, the amount of the gross receipts is ascertainable. Such license tax shall be paid to the Department of Revenue by check made payable to the treasurer and shall be paid quarterly, one fourth on October 1, one fourth on January 1, one fourth on April 1 and one fourth on July 1 and shall become delinquent on the fifteenth day of each said month, based upon gross receipts for the preceding year, or half year if operations began after April 1. The payment of such license shall be accompanied by a sworn statement made on forms furnished by the Department of Revenue by the president, manager or operating officer of the public utility, or by the owner, receiver, or trustee thereof, giving the name of the person, firm, or corporation owning and operating said public utility and the principal place of business thereof, showing the gross receipts of such public utility for the preceding year. The books of every person operating a public utility shall be at all times open to the inspection of the Department of Revenue. Any person failing to make such sworn statement or willfully making a false statement of the gross receipts of such public utility shall be guilty of a misdemeanor and upon conviction shall be fined not exceeding $500 and shall also forfeit to the state three times the amount of the license on said utility, but no license under this schedule shall be paid to the county or counties.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §177; Acts 1971, No. 1417, p. 2420, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38776,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37932,"codeId":17985,"versionId":14296,"parentId":17975,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-51","shortTitle":"Section 40-21-51","catchLine":"Distribution of Revenues Generally.","title":"Section 40-21-51 Distribution of Revenues Generally.","sectionRange":null,"content":"All revenues collected under the provisions of Section 40-21-50 shall, after deduction of the cost of collection, be distributed in the following manner:
(1) Eighty-five percent of the balance remaining after deduction of the cost of collection shall be deposited in the Special Mental Health Fund to be used for mental health purposes; and
(2) Fifteen percent of the balance remaining after deduction of the cost of collection shall be deposited in the State General Fund.
","history":"(Acts 1971, No. 1417, p. 2420, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38777,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37933,"codeId":17990,"versionId":14300,"parentId":17975,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-52","shortTitle":"Section 40-21-52","catchLine":"Freight Lines and Equipment Companies.","title":"Section 40-21-52 Freight Lines and Equipment Companies.","sectionRange":null,"content":"Any person, firm, joint-stock association, or corporation, wherever organized or incorporated, engaged in the business of operating, renting, leasing, or furnishing cars not otherwise listed for taxation in this state for the transportation of freight, whether such freight is owned by such company or any other person, firm, joint-stock association, or corporation, over any railroad or railway line or lines in whole or in part within this state, such line or lines not being owned, leased, or operated by such person, firm, joint-stock association, or corporation, whether such cars are termed box, flat, coal, ore, tank, stock, gondola, furniture, automobile, refrigerator, or some other name, shall be deemed to be a freight line or equipment company. Each freight line or equipment company doing business, owning, operating, renting, leasing, or furnishing cars which are operated in this state shall, on or before March 1 each year, make and file with the Department of Revenue on a form or forms prescribed by the Department of Revenue a statement under oath by its president, secretary, treasurer, superintendent, manager, receiver, trustee, or owner, showing the number of miles run by all its cars over the line or lines of each separate railroad or railway in this state, naming each separate railroad or railway, and the total number of miles run by all of its cars over all line or lines of all railroads or railways in this state, and the total number of miles run by its cars over line or lines or railroads or railways everywhere outside of this state, such mileage to be shown as made for the 12-month period preceding October 1 of each year. There shall be shown on the statement the principal place of business, together with the street address of each freight line or equipment company, together with the names and addresses of persons to whom correspondence or tax notice should be sent. It shall be the duty of the Department of Revenue to examine the statement of each freight line or equipment company, and the reports of each railroad or railway company over whose lines such freight line or equipment moved, and from such statements and reports to compute the average number of cars within the state of each freight line or equipment company for the 12 months preceding October 1 of each year; for the average number of cars found to be in the state for such 12-month period, the reasonable value of such cars shall be computed, and the sum total value of the average number of cars shall be reduced to 30 percent thereof. There is hereby levied and it shall be the duty of the Department of Revenue to assess a license tax of three and one-half percent of the 30 percent value of the average number of cars within the state for the period of 12 months preceding October 1 of each year. Such tax shall be assessed pursuant to the procedures for assessment of tax as set out in Chapter 2A of this title.
The tax shall become due on the date of entry of the preliminary assessment and shall be delinquent 30 days after the due date. The tax shall be paid to the Department of Revenue, by check made payable to the Treasurer, and the license tax so paid shall be placed to the credit of the State General Fund. Each railroad or railway company in this state shall also, annually before March 1 of each year, make and file with the Department of Revenue, under oath of some executive officer of the company and on forms prescribed by the Department of Revenue, a report containing as to all its lines in Alabama all the data required of freight line or equipment companies and any additional information deemed necessary by the Department of Revenue. Any person, firm, corporation, or association operating, renting, leasing, or otherwise furnishing cars as above mentioned, except a regularly organized and operated railroad, is deemed to be a freight line equipment company.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §176; Acts 1971, No. 1413, p. 2408; Acts 1992, No. 92-186, p. 349, §62.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38778,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37934,"codeId":17998,"versionId":30992,"parentId":17975,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-53","shortTitle":"Section 40-21-53","catchLine":"Electric, Hydroelectric, Gas, or Any Other Public Utility - License Tax - Credit on Electric Bills for Certain Persons.","title":"Section 40-21-53 Electric, Hydroelectric, Gas, or Any Other Public Utility - License Tax - Credit on Electric Bills for Certain Persons.","sectionRange":null,"content":"(a) Each person, firm, or corporation, including any corporations operating an electric or hydroelectric public utility; or a gas public utility; or any privately owned and operated wastewater system as defined in Section 22-25B-1 which is required by Chapter 25B of Title 22, to be operated and maintained by a wastewater management entity certified by the Public Service Commission; or any other public or municipal utility now paying the two and two-tenths percent shall be subject to the provisions of this section and shall pay to the state a license tax equal to two and two-tenths percent on each $1 of gross receipts of such public utility for the preceding year; except, that gross receipts from the sale of electricity for resale by such electric or hydroelectric public utilities and gross receipts from the sale of electricity to the persons identified in subsection (b) of this section shall be deducted in computing the amount of tax due hereunder. For the first year’s business, where an existing electric public utility is taken over, such license tax payable to the state shall be equal to two and two-tenths percent on each $1 of gross receipts for the preceding year of the electric utility taken over, after deduction of gross receipts derived from sales of electricity for resale and gross receipts from the sale of electricity to the persons identified in subsection (b) of this section and less whatever sum the prior operators shall have paid as such license tax on the gross receipts for that year. Where no existing electric public utility is taken over, the license tax for the first year upon such utility shall be based upon the first year’s business, computed as provided hereinabove, but shall in no event be less than $100 for the first year’s business. Any person, firm, or corporation establishing a new electric public utility shall pay to the state the sum of $100 and shall also at the same time execute a bond payable to the State of Alabama to insure payment of whatever sum in addition to such $100 may be due when, at the end of the first year the amount of gross receipts for the year is ascertainable. Such license tax shall be paid to the Department of Revenue by check made payable to the Treasurer and shall be paid quarterly, one fourth on October 1, one fourth on January 1, one fourth on April 1 and one fourth on July 1 and shall become delinquent on the fifteenth day of each of said months. Payment shall be accompanied by a statement made by the president or other officer of the public utility or by the owner thereof, giving the name of the person, firm, or corporation owning and operating such public utility and the principal place of business thereof, together with a statement under oath of the amount of gross receipts of such public utility for the preceding year. The books of every person, firm, or corporation operating such public utility shall be at all times open to the inspection of the Department of Revenue. Any person failing to make such sworn statement or willfully making a false statement of the gross receipts of such public utility shall be guilty of a misdemeanor and, upon conviction thereof, shall be fined not exceeding $500 and shall also forfeit to the state three times the amount of the license for such public utility, but no license under this schedule shall be paid to the county or counties.
(b)(1) On or after October 1, 1981 any person who is 62 years of age or older or totally and permanently disabled and such person is head of a household and does not share his or her residence with more than one other adult person who is less than 62 years of age and who receives electricity at such residence from a utility which is subject to the 2.2 percent license tax levied in subsection (a) of this section shall be entitled to qualify, in accordance with the provisions of subdivision (2) of this subsection, for a credit on his or her monthly electric bill in the amount of the exemption from the 2.2 percent license tax with respect to sales of electricity to such person provided in subsection (a) of this section; provided that the combined gross incomes of all persons who live at the residence of such person 62 years of age or older or such totally and permanently disabled person shall not exceed $12,000 annually. Eligibility for this credit applies only to the extent and amount that it is billed to the customers as a normal requirement under its rates.
(2) Any person who seeks to qualify for the credit provided in subdivision (1) of this subsection shall make application to the Department of Human Resources in accordance with the rules promulgated by the Department of Human Resources for the implementation and enforcement of this section. The Department of Human Resources shall periodically notify, in writing, each electric utility in the state which is subject to payment of the 2.2 percent license tax levied in subsection (a) of this section regarding those customers who are entitled to receive the monthly credit. Within 45 days after receipt of notification for such monthly credit the electric utility shall commence providing such credit for gross receipts license tax that otherwise would be billed.
(3) Any person who wrongfully qualifies for such exemption by giving false information shall be guilty of a misdemeanor and upon conviction may be fined not to exceed $500.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §178; Acts 1971, No. 1412, p. 2406, §1; Acts 1981, No. 81-867, p. 1659; Act 2009-773, p. 2388, §3.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38779,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37935,"codeId":18005,"versionId":14312,"parentId":17975,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-54","shortTitle":"Section 40-21-54","catchLine":"Electric, Hydroelectric, Gas, or Any Other Public Utility - Not to Constitute Part of Gross Receipts for Purposes of Computation of State, County or Municipal Tax, Etc.","title":"Section 40-21-54 Electric, Hydroelectric, Gas, or Any Other Public Utility - Not to Constitute Part of Gross Receipts for Purposes of Computation of State, County or Municipal Tax, Etc.","sectionRange":null,"content":"The provisions of any state, county or municipal ordinance or law to the contrary notwithstanding, the tax levied and collectible pursuant to Section 40-21-53 shall be deductible from and shall not constitute a part of gross receipts for purposes of computing the amount due under any state, county or municipal tax, excise, license, or fee which is based upon or measured by the gross receipts of any person, firm, municipality, or corporation operating an electric or hydroelectric public utility subject to the tax levied by said section.
","history":"(Acts 1971, No. 1412, p. 2406, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38780,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37936,"codeId":18012,"versionId":14319,"parentId":17975,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-55","shortTitle":"Section 40-21-55","catchLine":"Electric, Hydroelectric, Gas, or Any Other Public Utility - Distribution of Revenues.","title":"Section 40-21-55 Electric, Hydroelectric, Gas, or Any Other Public Utility - Distribution of Revenues.","sectionRange":null,"content":"All revenues collected under the provisions of Section 40-21-53 shall, after deduction of the cost of collection, be distributed in the following manner:
(1) Eighty-five percent of the balance remaining after deduction of the cost of collection shall be deposited in the Special Mental Health Fund to be used for mental health purposes; and
(2) Fifteen percent of the balance remaining after deduction of the cost of collection shall be deposited in the General Fund.
","history":"(Acts 1971, No. 1412, p. 2406, §3.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38781,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37937,"codeId":18018,"versionId":14324,"parentId":17975,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-56","shortTitle":"Section 40-21-56","catchLine":"Manufacturers and Sellers of Hydroelectric Power.","title":"Section 40-21-56 Manufacturers and Sellers of Hydroelectric Power.","sectionRange":null,"content":"In addition to all other taxes of every kind now imposed by law or otherwise imposed by this title, there is hereby levied a license or privilege tax upon each person, firm, corporation, agent or officer engaged in the business of manufacturing and selling hydroelectric power in the State of Alabama for the privilege of engaging in such business; said license or privilege tax shall be due and payable in advance, on or before September 25 of each year, and shall be in sum equal to two fifths of a mill upon each kilowatt hour of hydroelectric power manufactured and sold during the preceding calendar year.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §179; Acts 1957, No. 551, p. 772.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38782,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37938,"codeId":18020,"versionId":14327,"parentId":17975,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-60","shortTitle":"Section 40-21-60","catchLine":"Express Companies - Generally.","title":"Section 40-21-60 Express Companies - Generally.","sectionRange":null,"content":"In addition to all other taxes of every kind imposed by this title, there is hereby levied a license or privilege tax upon each person engaged in the business of operating an express company in the State of Alabama for the privilege of engaging in such business; said license or privilege tax shall be due and payable to the Department of Revenue by check made payable to the Treasurer annually in advance, on or before October 1 of each year, and shall be in a sum equal to two and one-half percent of the gross receipts of such express company from all the intrastate business within the State of Alabama during the preceding calendar year.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §184.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38783,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37939,"codeId":18028,"versionId":14335,"parentId":17975,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-61","shortTitle":"Section 40-21-61","catchLine":"Express Companies - Alternative Tax.","title":"Section 40-21-61 Express Companies - Alternative Tax.","sectionRange":null,"content":"There shall be levied and collected from every person doing an express business between points wholly within this state and without reference to its interstate business, whether incorporated under the laws of this state or any other state or whether incorporated at all, a license or privilege tax of $4,000, which shall be paid to the Department of Revenue by check made payable to the Treasury by said company on or before the expiration of the fifteenth day of each fiscal year; provided, that any express company which operates on less than 50 miles of railroad, street railway, motor line, or boat line shall pay an annual tax of $250; and provided, that any express company which operated on 50 miles of railroad, street railway, motor line, or boat line, and less than 200 miles of railroad, street railway, motor line or boat line, shall pay an annual license of $500; and provided further, that all express companies that operate on 200 and not over 500 miles shall pay an annual tax of $2,500. It is not intended that the taxpayer under this section and Section 40-21-60 shall pay both the taxes therein mentioned, but that the taxpayer shall pay the larger of the two. The tax levied by this section and Section 40-21-60 shall not apply to bus lines which pay a license and mileage tax under Chapter 19 of this title and which carry express as a regular part of their business of hauling passengers.
","history":"(Acts 1935, No. 432, p. 910; Code 1940, T. 51, §185.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38784,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37940,"codeId":18034,"versionId":14339,"parentId":17975,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-62","shortTitle":"Section 40-21-62","catchLine":"Report of Gross Receipts by Utility.","title":"Section 40-21-62 Report of Gross Receipts by Utility.","sectionRange":null,"content":"In all cases where a public utility is required under this title to pay a privilege or license tax on gross receipts, such public utility shall make report to the Department of Revenue of such gross receipts to which such tax is applicable in a manner and form which will show the correct and true amount of such gross receipts upon which the tax is computed.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §181.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38785,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37941,"codeId":18039,"versionId":14344,"parentId":17975,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-63","shortTitle":"Section 40-21-63","catchLine":"Receipts from Department.","title":"Section 40-21-63 Receipts from Department.","sectionRange":null,"content":"The Department of Revenue shall, upon receipt of any amount of money due for tax on gross receipts of any public utility, mail to such utility paying the tax a receipt therefor. Such a receipt shall state specifically the section of this title levying the tax for which such receipt is given.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §187.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38786,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37942,"codeId":18045,"versionId":14350,"parentId":17975,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-64","shortTitle":"Section 40-21-64","catchLine":"Counties Not to Levy Privilege or License Taxes.","title":"Section 40-21-64 Counties Not to Levy Privilege or License Taxes.","sectionRange":null,"content":"No county shall levy a privilege or license tax on any business or occupation on which a privilege or license tax is levied by this article or on any telephone or telegraph utility business.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §188; Acts 1992, No. 92-623, p. 1466, §13.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38787,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37943,"codeId":18057,"versionId":null,"parentId":17772,"effectiveDate":null,"supersessionDate":null,"type":"Article","displayId":"3","shortTitle":"Article 3","catchLine":"Utility Gross Receipts Tax.","title":"Article 3 Utility Gross Receipts Tax.","sectionRange":"§40-21-80 to §40-21-88","content":null,"history":null,"numChildren":10,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":38788,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37944,"codeId":18058,"versionId":26678,"parentId":18057,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-80","shortTitle":"Section 40-21-80","catchLine":"Definitions.","title":"Section 40-21-80 Definitions.","sectionRange":null,"content":"(a) For the purpose of this article, the following terms shall have the respective meanings ascribed by this section:
(1) DEPARTMENT. The Department of Revenue of the State of Alabama.
(2) DOMESTIC WATER. All water except water that is sold to persons for use or consumption in industrial processes and not primarily for human consumption.
(3) GROSS RECEIPTS. The value proceeding or accruing from the furnishing of utility services, all receipts actual and accrued, without any deduction on account of the cost of the utility services sold, the cost of the materials used, labor or service cost, interest paid, or any other expenses whatever, and without any deductions on account of losses.
(4) GROSS SALES. The value proceeding or accruing from the furnishing of utility services, and including the proceeds from the sale of any utility services handled on consignment by the taxpayer, without any deduction on account of the cost of the utility services sold, the cost of the materials used, labor or service cost, interest paid, or any other expenses whatever, and without any deductions on account of losses.
(5) PERSON. An individual, firm, copartnership, association, trust, receiver, corporation, or other entity, and shall specifically include the State of Alabama, every county in the State of Alabama, every municipal corporation in the State of Alabama, the United States of America and its agencies, and every public corporation or entity organized under the laws of the United States of America or under the laws of any state of the United States of America and operating in the State of Alabama, as well as every private or nonpublic entity.
(6) RETAIL SALE. All sales except those defined herein as wholesale sales.
(7) TAXPAYER. Any person liable for taxes under the provisions of this article.
(8) UTILITY. Every person regularly engaged in furnishing utility services to another person in the State of Alabama.
(9) UTILITY SERVICES. Electricity, domestic water, natural gas, telegraph services, and telephone services; provided, however, that “utility services” shall not mean electricity, domestic water, natural gas, telephone services, or telegraph services stored, used, or consumed by a utility regularly engaged in furnishing the same such service to the public.
(10) WHOLESALE SALE. A sale or exchange of utility services by a utility to any person or any other utility engaged in the resale of such utility services in the regular course of business.
(11) TELEPHONE SERVICES. Local telephone service, interstate telephone service which originates or terminates within this state but does not both originate and terminate in this state and is charged to a service address in this state, and intrastate toll telephone service, private communications service, teletypewriter, and computer exchange service. The term “telephone services” includes transmission by or through any media such as wires, cables, microwaves, light waves, or any combination of those or similar media. It includes, but is not limited to, telephone services sold by motels and hotels to their customers or to others, telephone services sold by colleges and universities to their students or to others, and telephone services sold by hospitals to their patients or to others. The term “telephone services” shall not include:
(i) Telephone services provided through any pay telephone;
(ii) Any excise, franchise, or similar tax or like fee or assessment levied by the United States, by the State of Alabama, or by any political subdivision, upon the purchase, sale, use, or consumption of any telephone services, which tax, fee, or assessment is collected by the seller from the purchaser;
(iii) The furnishing of any telephone services for resale, including access charges paid by an interexchange carrier, provided that any utility making a sale of telephone services for resale shall obtain a certificate from the purchaser of such services certifying that such services are purchased for the purpose of resale, the form of the certification to be determined by rules and regulations to be promulgated by the department;
(iv) Charges for customer premises equipment, including such equipment that is leased or rented by the customer from any source;
(v) Cable television service, paging services, specialized mobile radio, or mobile telecommunications service; or
(vi) Services which are ancillary to the provision of telephone service but are not directly related to the transmission of voice, data, or information such as directory advertising and installation and repair of equipment and inside wiring.
The term “local telephone service” means the access to a local telephone system, and the privilege of telephonic-quality communication with substantially all persons having telephone stations constituting a part of such local telephone system.
The term “toll telephone service” means (A) a telephonic-quality communication for which there is a toll charge which varies in amount according to the distance and elapsed transmission time of each individual communication, or (B) a service that entitles the subscriber or user, upon the payment of a periodic charge that is determined as a flat amount or upon some basis of total elapsed transmission time, or upon some combination thereof, to the privilege of an unlimited number of telephonic communications to or from all or a substantial portion of the persons having telephone or radio telephone stations in a specified area which is outside the local telephone system area in which the station provided with this service is located. The term “toll telephone service” includes wide-area telephone service charges.
The term “private communications service” means a communication service that entitles the subscriber or user to exclusive or priority use of a communication channel or group of channels, regardless of whether such channel or group of channels may be connected through switching with a service described in this subparagraph.
The terms “teletypewriter” and “computer exchange service” mean the access from a teletypewriter, telephone, computer, or other data station of which such station is a part, and the privilege of intercommunication by such station with substantially all persons having teletypewriter, telephone, computer, or other data stations constituting a part of the same teletypewriter or computer exchange system. The terms “teletypewriter” and “computer exchange service” do not include the storage of data or information for subsequent retrieval, the retrieval of data or information, or the processing, or reception and processing, of data or information intended to change its form or content, and the term “computer exchange service” shall not include access to the Internet.
The term “intrastate,” as applied to telephone services, includes only those services originating and terminating wholly in this state.
The term “call-by-call basis” means any method of charging for telephone service where the price is measured by individual calls.
The term “communications channel” means a physical or virtual path of communications over which signals are transmitted between or among customer channel termination points.
The term “customer” means the person or entity that contracts with the seller of telephone services. If the end user of the telephone services is not the contracting party, the end user of the telephone service is the customer of the telephone service, but this sentence only applies for the purpose of sourcing sales of telecommunications under Section 40-21-81. “Customer” does not include a reseller of telephone service.
The term “customer channel termination point” means the locations where the customer either inputs or receives the communications.
The term “end user” means the person who utilizes the telephone service. In the case of the entity, “end user” means the individual who utilizes the service on behalf of the entity.
The term “post-paid calling service” means the telephone service obtained by making a payment on a call-by-call basis either through the use of a credit card or payment mechanism such as a bank card, travel card, credit card, or debit card, or by charge made to a telephone number which is not associated with the origination or termination of the telephone service. A post-paid calling service includes a telephone service that would be a prepaid calling service except it is not exclusively a telephone service.
The term “place of primary use” means the street address representative of where the customer’s use of the telephone service primarily occurs, which must be the residential street address or the primary business street address of the customer.
The term “service address” means:
(A) The location of the telecommunications equipment to which a customer’s call is charged and from which the call originates or terminates, regardless of where the call is billed or paid.
(B) If the location in (A) is not known, service address means the origination point of the signal of the telephone services first identified by either the seller’s telephone system or in information received by the seller from its service provider, where the system used to transport such signals is not that of the seller.
(C) If the location in (A) and (B) are not known, the service address means the location of the customer’s place of primary use.
(b) “Herein,” “hereby,” “hereunder,” “hereof,” and other such words of reference shall refer to this article as a whole, and not solely to the particular section or portion of this article in which any such word may be used.
(c) The definitions set forth in this section shall be deemed applicable whether the words defined are used in the singular or the plural.
","history":"(Acts 1969, Ex. Sess., No. 21, p. 46, §§1, 2; Acts 1969, No. 239, p. 569; Acts 1969, No. 993, p. 1757, §1; Acts 1976, No. 387, p. 491, §1; Acts 1992, No. 92-623, p. 1466, §1; Act 98-654, p. 1431, §1; Act 2001-1090, 4th Sp. Sess., p. 1120, §1; Act 2006-292, p. 584, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38789,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37945,"codeId":18065,"versionId":14365,"parentId":18057,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-81","shortTitle":"Section 40-21-81","catchLine":"Legislative Intent.","title":"Section 40-21-81 Legislative Intent.","sectionRange":null,"content":"It is the intention of the Legislature of Alabama that the tax herein levied shall apply to all utilities, as defined herein, in the State of Alabama. With respect to every tax exemption which may be enacted into law subsequent to the enactment of this article, there shall be a presumption that such exemption does not apply to the tax herein levied unless the statute containing such exemption shall make a specific reference to this article and shall clearly show a legislative intention to make such exemption applicable to the tax herein levied.
","history":"(Acts 1969, Ex. Sess., No. 21, p. 46, §3; Acts 1992, No. 92-623, p. 1466, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38790,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37946,"codeId":18072,"versionId":26679,"parentId":18057,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-82","shortTitle":"Section 40-21-82","catchLine":"Levy of Tax; Sourcing of Gross Sales or Gross Receipts from Telegraph or Telephone Services.","title":"Section 40-21-82 Levy of Tax; Sourcing of Gross Sales or Gross Receipts from Telegraph or Telephone Services.","sectionRange":null,"content":"(a) There is hereby levied, in addition to all other taxes of every kind now imposed by law, and shall be collected as herein provided, a privilege or license tax against every utility furnishing electricity, domestic water, or natural gas in the State of Alabama. The amount of the tax shall be determined by the application of rates against gross sales or gross receipts, as the case may be, from the furnishing of such services in the State of Alabama. The tax shall be computed monthly with respect to each person to whom such services are furnished, in accordance with the following table:
| If monthly gross sales or gross receipts respecting a person are: | The tax is: |
| Not over $40,000 | 4% of such gross sales or gross receipts |
| Over $40,000 but not over $60,000 | $1,600 plus 3% of excess over $40,000 |
| Over $60,000 | $2,200 plus 2% of excess over $60,000 |
(b) There is hereby levied a privilege or license tax against every utility furnishing telegraph or telephone services in the State of Alabama. The amount of the tax shall be determined by the application of rates against gross sales or gross receipts, as the case may be, from the furnishing of such services in the State of Alabama. The tax shall be applied to interstate telephone service beginning with bills dated on and after February 1, 2002, regardless of when the services being billed were provided. The tax shall be computed monthly with respect to each person to whom such services are furnished, in accordance with the following table:
| If monthly gross sales or gross receipts respecting a person are: | The tax is: |
| Not over $60,000 | 6.7% of such gross sales or gross receipts |
| Over $60,000 | $4,020 plus 3.7% of excess over $60,000 |
Beginning with bills dated on or after April 1, 2002, the tax shall be computed at the rate of six percent on all gross sales or gross receipts. The utility furnishing such telegraph or telephone services shall be entitled to deduct and retain from the gross amount of tax billed by the utility nine-tenths of one percent of the amount of such tax billed on or after February 1, 2002, in consideration of the costs incurred by the utility in collecting and remitting the tax levied by this subsection; provided, however, that on and following October 1, 2002, the amount deducted and retained by such utility shall be one-fourth of one percent of the gross amount of such tax billed.
(c) If charges for a nontaxable service are aggregated with and not separately stated from charges for telephone or telegraph service that are subject to taxation, then the charges for the nontaxable service are subject to taxation unless the utility can reasonably identify the charges not subject to taxation from its books and records that are kept in the regular course of business.
(d) The provisions of subsection (c) do not create any customer right to require that, for purposes of determining the amount of tax applicable to a transaction, either the utility or the department allocate or attribute the bundled charge to the different portions of the transaction in order to minimize the amount of tax charged to the customer.
(e) Gross sales or gross receipts from the furnishing of telegraph or telephone services shall be sourced as follows:
(1) Except for the defined telegraph or telephone services in subdivisions (3) and (4), the sale of telephone service sold on a call-by-call basis shall be sourced to a. each level of taxing jurisdiction where the call originates and terminates in that jurisdiction or b. each level of taxing jurisdiction where the call either originates or terminates and in which the service address is also located.
(2) Except for the defined telegraph or telephone services in subdivisions (3) and (4), the sale of telephone service sold on a basis other than a call-by-call basis is sourced to the customer’s place of primary use.
(3) The sale of post-paid calling service is sourced to the origination point of the telecommunications signal as first identified by either a. the seller’s telecommunication system, or b. information received by the seller from its service provider, where the system used to transport such signal is not that of the seller.
(4) A sale of private communication service is sourced as follows:
a. Service for a separate charge related to a customer channel termination point is sourced to each level of jurisdiction in which such customer channel termination point is located.
b. Service where all customer channel termination points are located entirely within one jurisdiction is sourced to the jurisdiction in which the customer channel termination points are located.
c. Service for segments of a channel between two customer channel termination points located in different jurisdictions and which segments of channel are separately charged is sourced 50 percent in each level of jurisdiction in which the customer channel termination points are located.
d. Service for segments of a channel located in more than one jurisdiction or levels of jurisdiction and which segments are not separately billed is sourced in each jurisdiction based on the percentage determined by dividing the number of customer channel termination points in such jurisdiction by the total number of customer channel termination points.
","history":"(Acts 1969, Ex. Sess., No. 21, p. 46, §4; Acts 1971, 1st Ex. Sess., No. 98, p. 172; Acts 1992, No. 92-623, p. 1466, §3; Acts 1993, No. 93-614, p. 1006, §2(4); Act 2001-1090, 4th Sp. Sess., p. 1120, §1; Act 2004-397, p. 668, §1; Act 2006-292, p. 584, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38791,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37947,"codeId":18080,"versionId":14377,"parentId":18057,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-82.1","shortTitle":"Section 40-21-82.1","catchLine":"Exemptions.","title":"Section 40-21-82.1 Exemptions.","sectionRange":null,"content":"(a) Smith’s Water Authority in Lee County, Alabama, is exempt from all taxes levied under Section 40-21-82.
(b) The Northeast Crenshaw Water and Fire Protection Authority in Crenshaw and Montgomery Counties, Alabama, is exempt from all taxes levied under Section 40-21-82.
(c) The Bakerhill Water Authority in Barbour County, Alabama, is exempt from all taxes levied under Section 40-21-82.
(d) The Russell County Water Authority is exempt from all taxes levied under Section 40-21-82.
(e) The Chambers County E911 Authority is exempt from all taxes levied under Section 40-21-82.
","history":"(Acts 1978, No. 534, p. 588; Acts 1978, No. 854, p. 1280; Acts 1994, No. 94-594, p. 1101, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38792,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37949,"codeId":18092,"versionId":14388,"parentId":18057,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-84","shortTitle":"Section 40-21-84","catchLine":"Utility License Required.","title":"Section 40-21-84 Utility License Required.","sectionRange":null,"content":"Any person regularly engaging in any business for which a privilege tax is imposed by Section 40-21-82 shall apply for and obtain from the department a license to engage in and to conduct the business of furnishing utility services for the then current tax year. Such license shall be granted upon the condition that the applicant must pay all taxes accruing to the State of Alabama under the provisions of this article; provided, however, that no such license shall be issued to any person who has not complied with the provisions of this article. No provision of this article shall be construed as relieving any person from the payment of any license or privilege tax now or hereafter imposed by law.
","history":"(Acts 1969, Ex. Sess., No. 21, p. 46, §6; Acts 1992, No. 92-623, p. 1466, §5.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38795,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37950,"codeId":18096,"versionId":14392,"parentId":18057,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-85","shortTitle":"Section 40-21-85","catchLine":"Administration of Article and Collection of Tax.","title":"Section 40-21-85 Administration of Article and Collection of Tax.","sectionRange":null,"content":"(a) The provisions of this article shall be administered and the tax herein levied shall be collected in accordance with the uniform procedures set forth in this title, along with the procedures set forth in Division 1 of Article 1 of Chapter 23 of this title, for administering and collecting the tax therein levied, and for such purposes there are hereby incorporated into this article by reference the provisions of Sections 40-23-8 through 40-23-12, 40-23-25 and 40-23-27 through 40-23-31, together with the definitions applicable to said sections contained in Section 40-23-1; provided, that in the event of the repeal of such division, such repeal shall not operate to eliminate the tax collection procedures contained therein to the extent they are incorporated in this article by reference, unless the legislation providing for such repeal shall clearly indicate such a result.
The taxes herein levied shall be due and payable as follows:
(1) Any taxpayer liable for taxes under the provisions of this subdivision whose average monthly tax liability was less than $10,000 during the preceding calendar year shall remit such taxes in accordance with Section 40-23-7.
(2) Any taxpayer liable for taxes under the provisions of this subdivision whose average monthly tax liability was $10,000 or greater during the preceding calendar year shall make estimated payments to the Revenue Department on or before the twentieth day of the month in which the liability occurred.
(b) The amounts of the payment shall be at least equal to the taxpayer’s actual tax liability for the same calendar month of the preceding year.
(c) Any outstanding credit or deficit arising from the taxpayer’s overpayment or underpayment of its final liability shall be applied to either increase or reduce, as the case may be, that month’s final tax liability which shall be reported and paid not later than the twentieth of the month next succeeding the month in which the tax accrues. The provisions of Section 40-23-7 shall apply to the filing of the monthly tax liability report.
(d) In those instances where a taxpayer due to divestiture compliance with a lawful order of a court of competent jurisdiction, or the sale of a portion of the business on which said tax is applicable, where such divestiture compliance or sale reduces the gross revenues of the taxpayer, the Commissioner of Revenue shall determine for a period of 12 months following such divestiture compliance or sale the monthly estimated tax liability and shall consider among others, the financial historical data and the percentage of divestiture or sale of said business of the taxpayer. Following the 12-month period, taxes shall be remitted in accordance with subsection (c) of this section.
(e) In those instances where there is no preceding calendar year for purposes of determining the tax liability of any taxpayer, the Commissioner of Revenue shall determine for a period of 12 months the monthly estimated tax liability for the taxpayer. Following the 12-month period, taxes shall be remitted in accordance with subsection (c) of this section.
","history":"(Acts 1969, Ex. Sess., No. 21, p. 46, §7; Acts 1983, No. 83-739, p. 1207; Acts 1992, No. 92-186, p. 349, §63.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38796,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37951,"codeId":18101,"versionId":14396,"parentId":18057,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-86","shortTitle":"Section 40-21-86","catchLine":"Responsibilities of Utilities.","title":"Section 40-21-86 Responsibilities of Utilities.","sectionRange":null,"content":"Every person engaged in the State of Alabama in the furnishing of utility services shall add to the price or charge for such utility services to every purchaser thereof an amount equal to the prescribed percentage of the gross price or gross charge therefor and shall collect said amount from every purchaser of such utility services. It shall be unlawful for any person furnishing utility services to fail or refuse to collect from the purchaser the amount required by this section to be collected, and it shall likewise be unlawful to refund or offer to refund all or any part of the amount collected or to absorb or advertise directly or indirectly the absorption or refund of said amount or any portion thereof. The provisions of this section that the tax herein levied shall be collected from the purchaser shall in no way relieve any utility of the tax herein levied; nor shall the inability, impracticability, refusal, or failure so to collect from such purchaser the amounts provided herein relieve such utility of the tax herein levied. All taxes paid in pursuance of this article shall be conclusively presumed to be a direct tax on the purchaser precollected for the purpose of convenience and facility only.
","history":"(Acts 1969, Ex. Sess., No. 21, p. 46, §7A; Acts 1992, No. 92-623, p. 1466, §6.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38797,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37952,"codeId":18106,"versionId":38993,"parentId":18057,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-87","shortTitle":"Section 40-21-87","catchLine":"Disposition of Proceeds of Tax.","title":"Section 40-21-87 Disposition of Proceeds of Tax.","sectionRange":null,"content":"All taxes or other funds received or collected by the Department of Revenue of the State of Alabama under the provisions of this article remaining after the application of any exemptions, exclusions, deductions, or credits applicable thereto, and after the payment of the expenses of administration and enforcement of this article shall be without delay deposited into the State Treasury to the credit of Education Trust Fund except that, beginning the fiscal year ending September 30, 1993, $14,600,000 annually shall be deposited to the Special Mental Health Trust Fund, of which one-fourth is to be deposited quarterly.
","history":"(Acts 1969, Ex. Sess., No. 21, p. 46, §8; Acts 1992, No. 92-623, p. 1466, §14; Act 2015-27, §4.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38798,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37953,"codeId":29302,"versionId":23974,"parentId":18057,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-88","shortTitle":"Section 40-21-88","catchLine":"Liability of Retailer.","title":"Section 40-21-88 Liability of Retailer.","sectionRange":null,"content":"Any law to the contrary notwithstanding, any retailer, who relies in good faith on any state utility gross receipts tax exemption number that has been authorized by the Department of Revenue and the exemption claim has been made on a form provided or approved for use by the Department of Revenue, when a state tax exemption number holder violates the tax exempt privileges or uses the number illegally, shall not be liable to the Department of Revenue or others for the utility gross receipts tax on sales to the purchaser.
","history":"(Act 99-399, p. 663, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38799,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37954,"codeId":18118,"versionId":null,"parentId":17772,"effectiveDate":null,"supersessionDate":null,"type":"Article","displayId":"4","shortTitle":"Article 4","catchLine":"Utility Service Use Tax.","title":"Article 4 Utility Service Use Tax.","sectionRange":"§40-21-100 to §40-21-107","content":null,"history":null,"numChildren":8,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":38800,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37955,"codeId":18124,"versionId":26680,"parentId":18118,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-100","shortTitle":"Section 40-21-100","catchLine":"Definitions.","title":"Section 40-21-100 Definitions.","sectionRange":null,"content":"(a) For the purpose of this article, the following terms shall have the respective meanings ascribed by this section:
(1) BUSINESS. All activities relating to the furnishing of utility services.
(2) DEPARTMENT. The Department of Revenue of the State of Alabama.
(3) DOMESTIC WATER. All water except water that is sold to persons for use or consumption in industrial processes and not primarily for human consumption.
(4) GROSS RECEIPTS. The value proceeding or accruing from the furnishing of utility services, all receipts actual and accrued, without any deduction on account of the cost of the utility services sold, the cost of the materials used, labor or service cost, interest paid, or any other expense whatever, and without any deductions on account of losses.
(5) GROSS SALES. The value proceeding or accruing from the furnishing of utility services, and including the proceeds from the sale of any utility services handled on consignment by the taxpayer, without any deduction on account of the cost of the utility services sold, the cost of the materials used, labor or service cost, interest paid, or any other expenses whatever and without any deductions on account of losses.
(6) PERSON. An individual, firm, copartnership, association, trustee, receiver, corporation, or other entity, and shall specifically include the State of Alabama, every county in the State of Alabama, every municipal corporation in the State of Alabama, the United States of America and its agencies, and every public corporation or entity organized under the laws of the United States of America or under the laws of any state of the United States of America and operating in the State of Alabama, as well as every private or nonpublic entity.
(7) PURCHASE. Utility services which are acquired, with or without consideration, whether such acquisition is effected by a transfer of title or of possession, or of both, or a license to use or consume, whether such transfer is absolute or conditional, and by whatsoever means the same shall have been effected.
(8) RETAIL SALE. All sales except those defined herein as wholesale sales.
(9) SALES PRICE. The total amount for which utility services shall have been sold, or, if not sold or sold for only a nominal amount, the fair market value thereof, valued in money, whether paid in money or otherwise, and includes any amount for which credit is given to the purchaser by the seller, without any deduction therefrom on account of the cost of the utility services sold, the cost of the materials used, labor or service cost, interest charged, losses, or any other expenses whatever; provided, that cash discounts allowed and taken shall not be included.
(10) STORAGE. Any keeping or retention in the State of Alabama of utility services for any purpose, except sale in the regular course of business or subsequent use solely outside the State of Alabama.
(11) TAXPAYER. Any person liable for taxes under the provisions of this article.
(12) USE. The exercise of any right or power over utility services or the disposition thereof incident to a proprietary or possessory interest therein, except that it shall not include the sale of utility services in the regular course of business.
(13) UTILITY. Every person regularly engaged in furnishing utility services to another person in the State of Alabama.
(14) UTILITY GROSS RECEIPTS TAX. The tax levied by Article 3 of this chapter.
(15) UTILITY SERVICES. Electricity, domestic water, natural gas, telegraph services, and telephone services; provided, however, that “utility services” shall not mean electricity, domestic water, natural gas, telephone services, or telegraph services stored, used, or consumed by a utility regularly engaged in furnishing the same such services to the public, other than by a municipality or other municipal entities organized by a municipality.
(16) WHOLESALE SALE. A sale or exchange of utility services by a utility to any person or any other utility engaged in the resale of such utility services in the regular course of business.
(17) TELEPHONE SERVICES. Local telephone service, interstate telephone service which originates or terminates within this state but does not both originate and terminate in this state and is charged to a service address in this state, and intrastate toll telephone service, private communications service, teletypewriter, and computer exchange service. The term “telephone services” includes transmission by or through any media such as wires, cables, microwaves, light waves, or any combination of those or similar media. It includes, but is not limited to, telephone services sold by motels and hotels to their customers or to others, telephone services sold by colleges and universities to their students or to others, and telephone services sold by hospitals to their patients or to others. The term “telephone services” shall not include:
(i) Telephone services provided through any pay telephone;
(ii) Any excise, franchise, or similar tax or like fee or assessment levied by the United States, by the State of Alabama, or by any political subdivision, upon the purchase, sale, use, or consumption of any telephone services, which tax, fee, or assessment is collected by the seller from the purchaser;
(iii) The furnishing of any telephone services for resale, including access charges paid by an interexchange carrier, provided that any utility making a sale of telephone services for resale shall obtain a certificate from the purchaser of such services certifying that such services are purchased for the purpose of resale, the form of the certification to be determined by rules and regulations to be promulgated by the department;
(iv) Charges for customer premises equipment, including such equipment that is leased or rented by the customer from any source;
(v) Cable television service, paging services, specialized mobile radio, or mobile telecommunications service; or
(vi) Services which are ancillary to the provision of telephone service but are not directly related to the transmission of voice, data, or information such as directory advertising and installation and repair of equipment and inside wiring.
The term “local telephone service” means the access to a local telephone system, and the privilege of telephonic-quality communication with substantially all persons having telephone stations constituting a part of such local telephone system.
The term “toll telephone service” means (A) a telephonic-quality communication for which there is a toll charge which varies in amount according to the distance and elapsed transmission time of each individual communication, or (B) a service that entitles the subscriber or user, upon the payment of a periodic charge that is determined as a flat amount or upon some basis of total elapsed transmission time, or upon some combination thereof, to the privilege of an unlimited number of telephonic communications to or from all or a substantial portion of the persons having telephone or radio telephone stations in a specified area which is outside the local telephone system area in which the station provided with this service is located. The term “toll telephone service” includes wide-area telephone service charges.
The term “private communications service” means a communication service that entitles the subscriber or user to exclusive or priority use of a communication channel or group of channels, regardless of whether such channel or group of channels may be connected through switching with a service described in this subparagraph.
The terms “teletypewriter” and “computer exchange service” mean the access from a teletypewriter, telephone, computer, or other data station of which such station is a part, and the privilege of intercommunication by such station with substantially all persons having teletypewriter, telephone, computer, or other data stations constituting a part of the same teletypewriter or computer exchange system. The terms “teletypewriter” and “computer exchange service” do not include the storage of data or information for subsequent retrieval, the retrieval of data or information, or the processing, or reception and processing, of data or information intended to change its form or content, and the term “computer exchange service” does not include the Internet nor access thereto.
The term “intrastate,” as applied to telephone services, includes only those services originating and terminating wholly in this state.
The term “call-by-call basis” means any method of charging for telephone service where the price is measured by individual calls.
The term “communications channel” means a physical or virtual path of communications over which signals are transmitted between or among customer channel termination points.
The term “customer” means the person or entity that contracts with the seller of telephone services. If the end user of the telephone services is not the contracting party, the end user of the telephone service is the customer of the telephone service, but this sentence only applies for the purpose of sourcing sales of telecommunications under Section 40-21-81. “Customer” does not include a reseller of telephone service.
The term “customer channel termination point” means the locations where the customer either inputs or receives the communications.
The term “end user” means the person who utilizes the telephone service. In the case of the entity, “end user” means the individual who utilizes the service on behalf of the entity.
The term “post-paid calling service” means the telephone service obtained by making a payment on a call-by-call basis either through the use of a credit card or payment mechanism such as a bank card, travel card, credit card, or debit card, or by charge made to a telephone number which is not associated with the origination or termination of the telephone service. A post-paid calling service includes a telephone service that would be a prepaid calling service except it is not exclusively a telephone service.
The term “place of primary use” means the street address representative of where the customer’s use of the telephone service primarily occurs, which must be the residential street address or the primary business street address of the customer.
The term “service address” means:
(A) The location of the telecommunications equipment to which a customer’s call is charged and from which the call originates or terminates, regardless of where the call is billed or paid.
(B) If the location in (A) is not known, service address means the origination point of the signal of the telephone services first identified by either the seller’s telephone system or in information received by the seller from its service provider, where the system used to transport such signals is not that of the seller.
(C) If the location in (A) and (B) are not known, the service address means the location of the customer’s place of primary use.
(b) “Herein,” “hereby,” “hereunder,” “hereof” and other such words of reference shall refer to this article as a whole, and not solely to the particular section or portion of this article in which any such word may be used.
(c) The definitions set forth in this section shall be deemed applicable whether the words defined are used in the singular or the plural.
","history":"(Acts 1969, Ex. Sess., No. 37, p. 88, §§1, 2; Acts 1969, No. 240, p. 571; Acts 1992, No. 92-623, p. 1466, §7; Act 98-654, p. 1431, §1; Act 2001-1090, 4th Sp. Sess., p. 1120, §1; Act 2006-292, p. 584, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38801,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37956,"codeId":18130,"versionId":14420,"parentId":18118,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-101","shortTitle":"Section 40-21-101","catchLine":"Legislative Intent.","title":"Section 40-21-101 Legislative Intent.","sectionRange":null,"content":"It is the intention of the Legislature of Alabama that the tax herein levied shall be supplemental to and complementary with the utility gross receipts tax so as to prevent discrimination in the effect of the utility gross receipts tax upon either intrastate or interstate commerce. It is the intention of the Legislature of Alabama that the tax herein levied shall apply to purchases of utility services from any utility. With respect to every tax exemption which may be enacted into law subsequent to the enactment of this article, there shall be a presumption that such exemption does not apply to the tax herein levied unless the statute containing such exemption shall make specific reference to this article and shall clearly show a legislative intention to make such exemption applicable to the tax herein levied.
","history":"(Acts 1969, Ex. Sess., No. 37, p. 88, §3; Acts 1992, No. 92-623, p. 1466, §8.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38802,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37957,"codeId":18138,"versionId":26681,"parentId":18118,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-102","shortTitle":"Section 40-21-102","catchLine":"Levy of Tax; Sourcing of Total Sales Price for Telegraph or Telephone Services.","title":"Section 40-21-102 Levy of Tax; Sourcing of Total Sales Price for Telegraph or Telephone Services.","sectionRange":null,"content":"(a) There is hereby levied, in addition to all other taxes of every kind now imposed by law, and shall be collected as herein provided, an excise tax on the storage, use, or other consumption of electricity, domestic water, and natural gas in the State of Alabama. The amount of the tax shall be determined by the application of rates against the sales price of such services in the State of Alabama. The tax shall be computed monthly in accordance with the following table:
(b) There is hereby levied an excise tax on the storage, use, or other consumption of telegraph services or telephone services in the State of Alabama. The amount of the tax shall be determined by the application of rates against the sales price of such services in the State of Alabama. The tax shall be applied to interstate telephone service beginning with bills dated on or after February 1, 2002, regardless of when the services being billed were provided. The amount of the tax shall be computed monthly, in accordance with the following table:
Beginning with bills dated on or after April 1, 2002, the tax shall be computed at the rate of six percent. The utility furnishing such telegraph or telephone services shall be entitled to deduct and retain from the gross amount of tax billed by the utility nine-tenths of one percent of the amount of such tax billed on or after February 1, 2002, in consideration of the costs incurred by the utility in collecting and remitting the tax levied by this subsection; provided, however, that on and following October 1, 2002, the amount deducted and retained by such utility shall be one-fourth of one percent of the gross amount of such tax billed.
(c) Every person storing, using, or otherwise consuming utility services in the State of Alabama shall be liable for the tax imposed herein. Such liability shall not be extinguished until the tax has been paid to the State of Alabama.
(d) If charges for a nontaxable service are aggregated with and not separately stated from charges for telephone or telegraph service that are subject to taxation, then the charges for the nontaxable service are subject to taxation unless the utility can reasonably identify the charges not subject to taxation from its books and records that are kept in the regular course of business.
(e) The provisions of subsection (d) do not create any customer right to require that, for purposes of determining the amount of tax applicable to a transaction, either the utility or the department allocate or attribute the bundled charge to the different portions of the transaction in order to minimize the amount of tax charged to the customer.
(f) The total sales price from the storage, use, or other consumption of telegraph service or telephone service is sourced as follows:
(1) Except for the defined telegraph or telephone services in subdivisions (3) and (4), the storage, use, or consumption of telephone service sold on a call-by-call basis shall be sourced to a. each level of taxing jurisdiction where the call originates and terminates in that jurisdiction or b. each level of taxing jurisdiction where the call either originates or terminates and in which the service address is also located.
(2) Except for the defined telegraph or telephone services in subdivisions (3) and (4), the storage, use, or consumption of telephone service sold on a basis other than a call-by-call basis is sourced to the customer’s place of primary use.
(3) The storage, use, or consumption of post-paid calling service is sourced to the origination point of the telecommunications signal as first identified by either a. the seller’s telecommunication system, or b. information received by the seller from its service provider, where the system used to transport such signal is not that of the seller.
(4) The storage, use, or consumption of private communication service is sourced as follows:
a. Service for a separate charge related to a customer channel termination point is sourced to each level of jurisdiction in which such customer channel termination point is located.
b. Service where all customer channel termination points are located entirely within one jurisdiction is sourced to the jurisdiction in which the customer channel termination points are located.
c. Service for segments of a channel between two customer channel termination points located in different jurisdictions and which segments of channel are separately charged is sourced 50 percent in each level of jurisdiction in which the customer channel termination points are located.
d. Service for segments of a channel located in more than one jurisdiction or levels of jurisdiction and which segments are not separately billed is sourced in each jurisdiction based on the percentage determined by dividing the number of customer channel termination points in such jurisdiction by the total number of customer channel termination points.
","history":"(Acts 1969, Ex. Sess., No. 37, p. 88, §4; Acts 1971, 1st Ex. Sess., No. 99, p. 173; Acts 1992, No. 92-623, p. 1466, §9; Act 2001-1090, 4th Sp. Sess., p. 1120, §1; Act 2004-397, p. 668, §1; Act 2006-292, p. 584, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38803,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37959,"codeId":18153,"versionId":14437,"parentId":18118,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-104","shortTitle":"Section 40-21-104","catchLine":"Utilities to Register and Give Information.","title":"Section 40-21-104 Utilities to Register and Give Information.","sectionRange":null,"content":"Every utility, except as hereinafter provided, engaged in making retail sales of utility services for storage, use, or other consumption in the State of Alabama shall register with the department and give the name and address of its officers and directors, the location of each of its offices in the State of Alabama, the names and addresses of all persons with whom said utility has contracts for furnishing utility services by said utility, the names and addresses of all persons who have purchased utility services from said utility during the then next preceding 12 months, the amounts of the sales prices of all utility services furnished by said utility and such other information as the department may require with respect to matters pertinent to the enforcement of this article; provided, that this section of this article shall not apply to persons holding a license under the provisions of the utility gross receipts tax; provided further, that this section of this article shall not apply to the United States of America or to any agency or department of the United States of America or to any corporation exempted from so registering with the department under the Constitution or laws of the United States of America.
","history":"(Acts 1969, Ex. Sess., No. 37, p. 88, §6; Acts 1992, No. 92-623, p. 1466, §11.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38806,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37960,"codeId":18156,"versionId":14441,"parentId":18118,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-105","shortTitle":"Section 40-21-105","catchLine":"Seller to Collect Tax; Regulations; Penalty.","title":"Section 40-21-105 Seller to Collect Tax; Regulations; Penalty.","sectionRange":null,"content":"Every seller making sales of utility services for storage, use, or other consumption in this state, not exempted under the provisions of Section 40-21-103, shall at the time of making such sales or, if the storage, use, or other consumption of the utility services is not then taxable hereunder, at the time such storage, use or other consumption becomes taxable hereunder, collect the tax imposed by this article from the purchaser and give to the purchaser a receipt therefor in the manner and form prescribed by the department. The tax required to be collected by the seller from the purchaser shall be displayed separately from the list, advertised in the premises, marked or other price on the sales check or other proof of sales. It shall be unlawful for any such seller to advertise or hold out or state to the public or to any customer, directly or indirectly, that the tax or any part thereof imposed by this article will be assumed or absorbed by the seller or that it will not be added to the selling price of the property sold or, if added, that it or any part thereof will be refunded. Any person violating any of the provisions of this section shall be guilty of a misdemeanor. The tax herein required to be collected by the seller shall constitute a debt owed by the seller to this state.
In the event that a seller making sales of utility services for storage, use or other consumption in this state, not exempted under the provisions of Section 40-21-103, is exempted from collection of the tax herein levied by any provisions of the Constitution or laws of the United States of America, then the purchaser of such utility services shall pay the said tax directly to the department each month pursuant to such regulations as the department may prescribe from time to time.
","history":"(Acts 1969, Ex. Sess., No. 37, p. 88, §7.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38807,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37961,"codeId":18166,"versionId":14448,"parentId":18118,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-106","shortTitle":"Section 40-21-106","catchLine":"Procedure for Collecting Tax.","title":"Section 40-21-106 Procedure for Collecting Tax.","sectionRange":null,"content":"The tax herein levied shall be administered and collected in accordance with the uniform procedures set forth in this title, along with the procedures set forth for collecting the use tax described in Article 2 of Chapter 23 of this title, and for that purpose there are hereby incorporated into this article by reference the provisions of Sections 40-23-68, 40-23-74, 40-23-75, and 40-23-77, 40-23-82, 40-23-83, and 40-23-88; provided, that wherever in said provisions the words “this article” shall appear, the same for the purposes of this article shall be construed to mean “this article”; provided further, that wherever in said provisions reference shall be made to March 1, 1939, the same for the purposes of this article shall be construed to mean September 1, 1969; provided further, that wherever in said provisions reference shall be made to June 30, 1939, the same shall for the purposes of this article mean that certain day one calendar month subsequent to September 1, 1969; provided further, that none of the said provisions shall apply to the United States of America or to any agency or department of the United States of America; provided further, that the tax herein levied shall be collected monthly, and all reports and records respecting the said tax herein levied shall be made on a monthly basis; and, to that end, wherever in said provisions the word “quarterly” shall appear, the same for the purpose of this article shall be construed to mean “monthly”; and wherever in said provisions the words “three months” shall appear, the same for the purposes of this article shall be construed to mean “one month”.
","history":"(Acts 1969, Ex. Sess., No. 37, p. 88, §8; Acts 1992, No. 92-186, p. 349, §64.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38808,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37962,"codeId":18170,"versionId":38994,"parentId":18118,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-107","shortTitle":"Section 40-21-107","catchLine":"Disposition of Proceeds of Tax.","title":"Section 40-21-107 Disposition of Proceeds of Tax.","sectionRange":null,"content":"All taxes or other funds received or collected by the Department of Revenue of the State of Alabama under the provisions of this article remaining after the application of any exemptions, exclusions, deductions, or credits applicable thereto, and after the payment of the expenses of administration and enforcement of this article shall be without delay deposited into the State Treasury to the credit of Alabama Education Trust Fund.
","history":"(Acts 1969, Ex. Sess., No. 37, p. 88, §9; Act 2015-27, §4.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38809,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37963,"codeId":18177,"versionId":null,"parentId":17772,"effectiveDate":null,"supersessionDate":null,"type":"Article","displayId":"5","shortTitle":"Article 5","catchLine":"Cellular Radio Telecommunication Services Tax.","title":"Article 5 Cellular Radio Telecommunication Services Tax.","sectionRange":"§40-21-120 to §40-21-126","content":null,"history":null,"numChildren":8,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":38810,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37964,"codeId":18179,"versionId":25331,"parentId":18177,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-120","shortTitle":"Section 40-21-120","catchLine":"Definitions.","title":"Section 40-21-120 Definitions.","sectionRange":null,"content":"As used in this article, the following words and phrases shall have the following meanings respectively ascribed to them unless the context clearly indicates otherwise:
(1)a. CUSTOMER. The person or entity that contracts with the home service provider for mobile telecommunications service or, for the purposes of determining the place of primary use, if the end user of the mobile telecommunications service is not the contracting party, the end user of the mobile telecommunications service. The term does not include a reseller of mobile telecommunications service or a serving carrier under an arrangement to serve the customer outside the home service provider’s licensed service area.
b. HOME SERVICE PROVIDER. The facilities-based carrier or reseller with which the customer contracts for the provision of mobile telecommunications service.
c. LICENSED SERVICE AREA. The geographic area in which the home service provider is authorized by law or contract to provide mobile telecommunications service.
d. MOBILE TELECOMMUNICATIONS SERVICE. Commercial mobile radio service, as defined in Section 20.3 of Title 47 of the Code of Federal Regulations as in effect on June 1, 1999.
e. MONTHLY CHARGES. The monthly recurring access charges and local airtime charges only. However, effective for customer bills dated on or after February 1, 2002, monthly charges shall be the monthly recurring access charges and all airtime charges, regardless of when the services being billed were provided.
f. PLACE OF PRIMARY USE. The street address representative of where the customer’s use of the mobile telecommunications service primarily occurs, which must be the residential street address or the primary business street address of the customer and within the licensed service area of the home service provider.
g. RESELLER. A provider who purchases telecommunications services from another telecommunications service provider and then resells, uses as a component part of, or integrates the purchased services into a mobile telecommunications service. This term does not include a serving carrier with which a home service provider arranges for the services to its customers outside the home service provider’s licensed service area.
h. SERVING CARRIER. A facilities-based carrier providing mobile telecommunications service to a customer outside a home service provider’s or reseller’s licensed service area.
i. TAXING JURISDICTION. This state or any political subdivision within this state, including those operating under a home rule charter, with the authority to impose a tax, charge, or fee.
(2) Mobile telecommunications service and providers are not included in and are excluded from the coverage and application of, and are not subject to, the provisions of Title 37, and the levy of taxes and assessment of property under Articles 1 to 4, inclusive, of Chapter 21 of this title.
","history":"(Acts 1990, No. 90-97, p. 104, §1; Act 99-399, p. 663, §1; Act 2001-1090, 4th Sp. Sess., p. 1120, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38811,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37965,"codeId":18185,"versionId":25332,"parentId":18177,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-121","shortTitle":"Section 40-21-121","catchLine":"Levy of Tax; Procedure for Collecting Tax.","title":"Section 40-21-121 Levy of Tax; Procedure for Collecting Tax.","sectionRange":null,"content":"(a) There is hereby levied, in addition to all other taxes of every kind now imposed by law, and shall be collected as provided herein, a privilege or license tax against every home service provider doing business in the State of Alabama on account of the furnishing of mobile telecommunications service to a customer with a place of primary use in the State of Alabama by said home service provider. The amount of the tax shall be determined by the application of the rates against gross sales or gross receipts, as the case may be, from the monthly charges from the furnishing of mobile telecommunications service to a customer with a place of primary use in the State of Alabama and shall be computed monthly with respect to each person to whom services are furnished at the rate of four percent on bills dated prior to February 1, 2002, and at the rate of six percent on bills dated on or after February 1, 2002, regardless of when the services being billed were provided. The home service provider furnishing such mobile telecommunications services shall be entitled to deduct and retain from the gross amount of tax billed by the home service provider nine-tenths of one percent of the amount of such tax billed on or after February 1, 2002, in consideration of the costs incurred by the home service provider in collecting and remitting the tax levied by this article; provided, however, that on and following October 1, 2002, the amount deducted and retained by such provider shall be one-fourth of one percent of the gross amount of such tax billed.
(b) Every home service provider subject to the tax herein levied in subsection (a) shall add to the price or charge for such services and collect from every customer thereof an amount equal to the prescribed percentage of gross price or gross charge therefor. It shall be unlawful for any home service provider to fail or refuse to collect from the customer the amount required by this section to be collected, to refund or offer to refund all or any part of the amount collected, or to absorb or advertise directly or indirectly the absorption or refund of the amount or any portion thereof. The provisions of this subsection that the tax herein levied shall be collected from the customer shall in no way relieve any home service provider of the tax herein levied. Nor shall the inability, impracticality, refusal, or failure so to collect from such customer the amounts provided herein relieve such provider of the tax herein levied. All taxes paid in pursuance of this section shall be conclusively presumed to be a direct tax on the customer precollected for the purpose of convenience and facility only.
(c) Monthly charges for mobile telecommunications service provided to a customer and billed by or for the customer’s home service provider are deemed to be provided at the customer’s place of primary use. Such monthly charges are subject to the tax imposed by this chapter if the customer’s place of primary use is located in this state.
(d) If nontaxable charges for mobile telecommunications service are aggregated with and not separately stated from charges that are subject to taxation, then the charges for nontaxable mobile telecommunications service may be subject to taxation unless the home service provider can reasonably identify charges not subject to taxation from its books and records that are kept in the regular course of business.
(e) If charges for mobile telecommunications service are not subject to taxation, a customer may not rely upon the nontaxability of charges for mobile telecommunications service unless the customer’s home service provider separately states the charges for nontaxable mobile telecommunications service from taxable charges or the home service provider elects, after receiving a written request from the customer in the form required by the provider, to provide verifiable data based upon the home service provider’s books and records that are kept in the regular course of business that reasonably identifies the nontaxable charges.
(f)(1) A home service provider is to be held harmless from any tax, charge, or fee liability in this state that otherwise would be due solely as a result of an assignment of a street address to an incorrect taxing jurisdiction if, subject to subsection (i), the home service provider employs an enhanced zip code to assign each street address to a specific taxing jurisdiction for each level of taxing jurisdiction and exercises due diligence at each level of taxing jurisdiction to ensure that each street address is assigned to the correct taxing jurisdiction. If an enhanced zip code overlaps boundaries of taxing jurisdictions of the same level, the home service provider must designate one specific jurisdiction within the enhanced zip code for use in taxing the activity for the enhanced zip code for each level of taxing jurisdiction. Any enhanced zip code assignment changed in accordance with subsection (i) is in compliance with this subsection. For purposes of this subsection, there is a rebuttable presumption that a home service provider has exercised due diligence if the home service provider demonstrates that it has all of the following:
a. Expended reasonable resources to implement and maintain an appropriately detailed electronic database of street address assignments to taxing jurisdictions.
b. Implemented and maintained reasonable internal controls to promptly correct misassignments of street addresses to taxing jurisdictions.
c. Used all reasonably obtainable and usable data pertaining to municipal annexations, incorporations, reorganizations, and any other changes in jurisdictional boundaries that materially affect the accuracy of the database.
(2)a. The department may elect to provide an electronic database that satisfies the requirements of 4 U.S.C. § 119. If the department provides such database, a home service provider using the data contained in such database shall be held harmless from any liability, including tax, interest, and penalties, which would otherwise be due solely as a result of an assignment of a place of primary use to an incorrect local jurisdiction.
b. Paragraph a. shall apply to a home service provider who is in compliance with the terms of such subdivision until the later of (i) 18 months after the approval described in 4 U.S.C. § 119(a), or (ii) 6 months after the department provides an electronic database that satisfies the requirements of 4 U.S.C. § 119.
(g) A home service provider is responsible for obtaining and maintaining the customer’s place of primary use. Subject to subsection (i) and if the home service provider’s reliance on information provided by its customer is in good faith, a taxing jurisdiction shall allow a home service provider to rely on the applicable residential or business street address supplied by the home service provider’s customer and not hold a home service provider liable for any additional taxes, charges, or fees based on a different determination of the place of primary use for taxes, charges, or fees that are customarily passed on to the customer as a separate itemized charge.
(h) Except as provided in subsection (i), a taxing jurisdiction shall allow a home service provider to treat the address used by the home service provider for tax purposes for any customer under a service contract or agreement in effect on or before July 28, 2002, as that customer’s place of primary use for the remaining term of the service contract or agreement, excluding any extension or renewal of the service contract or agreement, for purposes of determining the taxing jurisdictions to which taxes, charges, or fees on charges for mobile telecommunications service are remitted.
(i) A taxing jurisdiction or the state on behalf of any taxing jurisdiction may:
(1) Determine that the address used for purposes of determining the taxing jurisdictions to which taxes, charges, or fees for mobile telecommunications service are remitted does not meet the definition of place of primary use and give binding notice to the home service provider to change the place of primary use on a prospective basis from the date of notice of determination if the taxing jurisdiction making the determination is not the state, the taxing jurisdiction obtains the consent of all affected taxing jurisdictions within this state before giving the notice of determination, and before the taxing jurisdiction gives the notice of determination, the customer is given an opportunity to demonstrate in accordance with applicable state or local tax, charge, or fee administrative procedures that the address is the customer’s place of primary use.
(2) Determine that the assignment of a taxing jurisdiction by a home service provider under subdivision (1) does not reflect the correct taxing jurisdiction and give binding notice to the home service provider to change the assignment on a prospective basis from the date of notice of determination if the taxing jurisdiction making the determination is not the state, the taxing jurisdiction obtains the consent of all affected taxing jurisdictions within the state before giving the notice of determination, and the home service provider is given an opportunity to demonstrate in accordance with applicable state or local tax, charge, or fee administrative procedures that the assignment reflects the correct taxing jurisdiction.
(j) Nothing in this section modifies, impairs, supersedes, or authorizes the modification, impairment, or supersession of any law allowing a taxing jurisdiction to collect a tax, charge, or fee from a customer that has failed to provide its place of primary use.
(k) If a customer believes that an amount of tax, charge, or fee or an assignment of place of primary use or taxing jurisdiction included on a billing is erroneous, the customer shall notify the home service provider in writing. The customer shall include in this written notification the street address for the customer’s place of primary use, the account name and number for which a customer seeks a correction, a description of the error asserted by the customer, and any other information that the home service provider reasonably requires to process the request. Within 60 days of receiving a notice under this section, the home service provider shall review its records to determine the customer’s taxing jurisdiction. If this review shows that the amount of tax, charge, or fee or assignment of place of primary use or taxing jurisdiction is in error, the home service provider shall correct the error and refund or credit the amount of tax, charge, or fee erroneously collected from the customer for a period of up to two years. If this review shows that the amount of tax, charge, or fee or assignment of place of primary use or taxing jurisdiction is correct, the home service provider shall provide a written explanation to the customer. The procedures in this section shall be the first course of remedy available to customers seeking correction of assignment of place of primary use or taxing jurisdiction, or a refund of or other compensation for taxes, charges, and/or fees erroneously collected by the home service provider, and no cause of action based upon a dispute arising from such taxes, charges, or fees shall accrue until a customer has reasonably exercised the rights and procedures set forth in this section.
","history":"(Acts 1990, No. 90-97, p. 104, §2(a), (b); Acts 1992, No. 92-623, p. 1466, §12; Act 99-399, p. 663, §1; Act 2001-1090, 4th Sp. Sess., p. 1120, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38812,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37966,"codeId":18192,"versionId":23820,"parentId":18177,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-122","shortTitle":"Section 40-21-122","catchLine":"Exclusions.","title":"Section 40-21-122 Exclusions.","sectionRange":null,"content":"There are hereby specifically excluded from the gross receipts or gross sales of a cellular provider, upon which the tax herein levied is calculated, all portions thereof derived from the following:
(1) The furnishings of cellular services which the State of Alabama is prohibited from taxing under the Constitution or laws of the United States of America or the Constitution of Alabama of 1901;
(2) The furnishing of cellular services which are otherwise taxed under the provisions of Sections 40-23-1 through 40-23-36;
(3) Wholesale sales; and
(4) The furnishing of cellular telecommunications service through the use of a prepaid telephone calling card, a prepaid authorization number, or both.
","history":"(Acts 1990, No. 90-97, p. 104, §2(c); Act 97-867, 1st Sp. Sess., p. 208, §3; Act 99-399, p. 663, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38813,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37967,"codeId":18197,"versionId":25333,"parentId":18177,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-123","shortTitle":"Section 40-21-123","catchLine":"Dispositions of Proceeds of Tax.","title":"Section 40-21-123 Dispositions of Proceeds of Tax.","sectionRange":null,"content":"The tax herein levied shall be collected and administered in accordance with the procedure set forth in Section 40-21-85, and for those purposes the provisions of Section 40-21-85 are hereby incorporated into this section by reference. All tax revenue and other funds received or collected under subsection (a) of Section 40-21-121 shall be deposited into the State Treasury and used for the following purposes:
(1) So much thereof as necessary is hereby appropriated to be used by the State Treasurer to pay at their respective maturities the principal and interest due in the fiscal year on the outstanding bonds issued by the Alabama Revolving Loan Fund Authority.
(2) Beginning in March of 2002, one-third of the remaining proceeds, plus $1 million in the fiscal year ending September 30, 2002, and $1.5 million each fiscal year thereafter, shall be credited to the Education Trust Fund.
(3) The residual balance thereof remaining shall be credited to the State General Fund.
","history":"(Acts 1990, No. 90-97, p. 104, §2(d); Act 98-195, p. 338, §10; Act 2001-1090, 4th Sp. Sess., p. 1120, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38814,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37968,"codeId":28957,"versionId":22688,"parentId":18177,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-123","shortTitle":"Section 40-21-123","catchLine":"(Effective Upon Ratification of Proposed Constitutional Amendment) Dispositions of Proceeds of Tax.","title":"Section 40-21-123 (Effective Upon Ratification of Proposed Constitutional Amendment) Dispositions of Proceeds of Tax.","sectionRange":null,"content":"The tax herein levied shall be collected and administered in accordance with the procedure set forth in Section 40-21-85, and for those purposes the provisions of Section 40-21-85 are hereby incorporated into this section by reference. All tax revenue and other funds received or collected under subsection (a) of Section 40-21-121 shall be deposited into the State Treasury and used for the following purposes:
(1) So much thereof as necessary is hereby appropriated to be used by the State Treasurer to pay at their respective maturities the principal and interest due in the fiscal year on the outstanding bonds issued by the Alabama Revolving Loan Fund Authority.
(2) The residual balance thereof remaining shall be credited to the State General Fund.
","history":"(Acts 1990, No. 90-97, p. 104, §2(d); Act 98-195, §10.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38815,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37969,"codeId":18202,"versionId":23821,"parentId":18177,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-124","shortTitle":"Section 40-21-124","catchLine":"License.","title":"Section 40-21-124 License.","sectionRange":null,"content":"If any person after February 1, 1990 shall engage in or continue in any business for which a tax is imposed by this article, as a condition precedent to engaging or continuing in such business, the person shall apply for and obtain from the Department of Revenue of the State of Alabama a license to engage in and to conduct the business of furnishing cellular telecommunication services for the then current tax year upon the condition that he or she shall pay the taxes accruing to the State of Alabama under the provisions of this article. No license shall be issued under the provisions of this article to any person who shall not have complied with the provisions of this article, and no provision of this article shall be construed as relieving any person from the payment of any license or privilege tax now or hereafter imposed by law.
","history":"(Acts 1990, No. 90-97, p. 104, §2(e); Act 99-399, p. 663, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38816,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37970,"codeId":29303,"versionId":23975,"parentId":18177,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-125","shortTitle":"Section 40-21-125","catchLine":"Liability of Provider.","title":"Section 40-21-125 Liability of Provider.","sectionRange":null,"content":"Any law to the contrary notwithstanding, any cellular telecommunication services provider, who accepts in good faith from a purchaser a cellular telecommunication services tax exemption form provided or approved for use by the Department of Revenue, shall not subsequently be liable to the Department of Revenue or others for the cellular telecommunication services tax on sales to that purchaser.
","history":"(Act 99-399, p. 663, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38817,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37971,"codeId":30739,"versionId":25523,"parentId":18177,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-21-126","shortTitle":"Section 40-21-126","catchLine":"Tax on Mobile Radio Communication Services.","title":"Section 40-21-126 Tax on Mobile Radio Communication Services.","sectionRange":null,"content":"There is hereby levied a tax on mobile radio communication services as defined in Section 20.3 of Title 47 of the Code of Federal Regulations as in effect on June 1, 1999, at the same rate as the tax levied in Section 40-21-121, effective February 1, 2002. The Department of Revenue shall exercise its rulemaking authority to ensure that the application of this tax complies with all applicable federal laws and regulations.
","history":"(Act 2001-1090, 4th Sp. Sess., p. 1120, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38818,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37972,"codeId":18238,"versionId":null,"parentId":40,"effectiveDate":null,"supersessionDate":null,"type":"Chapter","displayId":"22","shortTitle":"Chapter 22","catchLine":"Recordation Tax.","title":"Chapter 22 Recordation Tax.","sectionRange":"§40-22-1 to §40-22-12","content":null,"history":null,"numChildren":13,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":38819,"hierarchyLevel":1,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37973,"codeId":18241,"versionId":34565,"parentId":18238,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-22-1","shortTitle":"Section 40-22-1","catchLine":"Deeds, Bills of Sale, Etc.","title":"Section 40-22-1 Deeds, Bills of Sale, Etc.","sectionRange":null,"content":"(a) Except as set out in subsection (b), no deed, bill of sale, or other instrument of like character which conveys any real or personal property within this state or which conveys any interest in any such property shall be received for record unless the privilege or license tax is paid prior to the instrument being offered for record as provided in subsection (c).
(b) No privilege or license tax shall be required for any of the following:
(1) The transfer of mortgages on real or personal property within this state upon which the mortgage tax has been paid.
(2) Deeds or instruments executed for a nominal consideration for the purpose of perfecting the title to real estate.
(3) The re-recordation of corrected mortgages, deeds, or instruments executed for the purpose of perfecting the title to real or personal property, specifically, but not limited to, corrections of maturity dates thereof, and deeds and other instruments or conveyances, executed prior to October 1, 1923.
(c) Except as provided in subsection (b), the privilege or license tax on all instruments which are executed to convey real or personal property situated in this state of the value of $500 or less shall be $.50, and upon all such instruments executed to convey real or personal property situated in this state of more than $500 in value there shall be paid the sum of $.50 for each $500 or fraction thereof in value of property conveyed by such instrument; provided, that only the value in excess of any mortgages or vendor’s lien upon any property within this state on which the mortgage tax has been paid shall be taxable under this section; and provided further, that where several deeds or instruments are executed by tenants in common for the same consideration, only one of such instruments shall be taxable under this section. Except for instruments which convey only leaseholds easements, or licenses or the recordation of copies of instruments evidencing original transfers of title to land by the United States or the State of Alabama, any instrument presented for record pursuant to this section shall be accompanied by proof of the actual purchase price paid for the property or if the property has not been sold, proof of the actual value of the real or personal property which is the subject of the instrument being recorded. The Department of Revenue shall develop a form which shall be used for attesting to the actual value or actual purchase price of the property, which form shall include only information related to the actual value or actual purchase price of the property. Any person utilizing the form developed by the department pursuant to this section shall attest to the accuracy of the information being provided on the form, but shall not be required to provide any further documentation or proof of the actual purchase price or actual value of the property.
(d) Upon the presentation of any instrument for record, the judge of probate shall calculate the amount of tax due based upon the actual purchase price paid or the actual value of the property as required in subsection (c). If no proof is provided at the time the instrument is presented for recording, the amount of the tax due shall be based upon the value of the property as determined by the most recent assessment of property conducted pursuant to Title 40, Chapter 7, and the judge of probate shall assess penalties as set out in subsection (h) to be paid in addition to the tax due.
(e) The instrument shall be recorded upon the payment of the amount of such tax and recording fee, and where assessed, any penalties as set out in subsection (h); provided, however, that upon the presentation for record of any instrument which conveys property situated in two or more counties of this state, the judge of probate shall so certify receipt of the instrument together with a description of the property conveyed by the instrument to the Department of Revenue, which after hearing evidence as may be offered or as it may secure, shall fix and determine the value of the property as located in each county and shall certify its determination thereof to the judge of probate, showing the value of the property in each county separately; and, upon the payment to the judge of probate of the tax due on the value of all property in this state conveyed by the instrument as so determined, the judge of probate shall accept the instrument for record. The person presenting any instrument conveying property in two or more counties of this state may secure immediate filing of the instrument for record by depositing with the judge of probate an amount which in the judgment of the judge of probate will cover the tax herein provided for, and after the value of the property conveyed thereby is determined by the Department of Revenue, as provided herein, any excess of the deposit over the amount of tax found to be due on the instrument shall be refunded to the person offering the instrument for record. The determination by the judge of probate and of the Department of Revenue of the amount of tax due on any instrument is hereby declared to be a ministerial act and shall not preclude the subsequent collection of the correct amount of tax if the value of the property thereby conveyed is not fully disclosed to the judge of probate or the Department of Revenue when the instrument is offered for record. Upon the filing for record of any instrument coming within the terms of this section, the judge of probate shall certify thereon the fact that the tax has been paid, showing the amount of the tax, and thereafter the instrument shall be received for record in any county of this state without the payment of any further tax, except the fee of the judge of probate for recording such instrument, which certificate shall be recorded with and as part of the instrument.
(f) Upon the filing for record of any instrument which has been exempted by law from the payment of the tax provided for in this section, the judge of probate shall certify thereon that no tax has been paid and shall stamp in bold letters on the face of the instruments the words “No Tax Collected,” and the certificate shall be recorded with and as a part of the instrument, and thereafter such instrument shall be received for record in any county in this state without the payment of any further tax, when submitted by the same tax exempt institution or another tax exempt institution, but if submitted by or transferred to an institution or person not exempt from the payment of the tax levied under this section, the judge of probate shall collect the tax levied by this section, together with the fee of the judge of probate for recording such instrument, before it will be admitted to record.
(g) Of the tax collected by the judge of probate under the provisions of this section, there shall be paid into the State Treasury two thirds of the amount so collected, and the remaining one third shall be paid into the county treasury; provided, that the counties’ share of the tax collected on any instrument conveying property in more than one county shall be paid into the county treasuries of the counties in which such property is situated in proportion to the value of such property as determined by the Department of Revenue as herein provided. If the judge of probate is paid on fees and commissions, he or she shall receive two and one-half percent of the amount collected under the provisions of this section as his or her commission for collecting the money, which shall be deducted from the total amount collected and retained by him or her when making settlement of his or her collections as required by law; provided, that this section shall not be so construed or enforced as to require the payment of privilege tax herein provided on mortgages, deeds of trust, or other instruments in the nature of a mortgage or deeds or other instruments with a vendor’s lien except as to that part of the purchase price which is paid in cash or other articles of value and which pay no other privilege tax for recording. In counties where the probate judges are paid salaries, the fee or commission collected or retained for collecting the tax herein provided for shall be paid into the treasuries of their respective counties.
(h) Any person who submits an instrument for recording pursuant to this section and intentionally fails to submit proof of the value of the property or the actual purchase price paid for the property as required in subsection (c) following a specific request for such proof from the probate office or who presents false proof of same, in addition to payment of the tax due as calculated on the actual value of the property, shall pay a penalty of one hundred dollars ($100) or 25 percent of the privilege or license tax actually due, whichever is greater. No person submitting the form required under subsection (c) above shall be deemed to have presented false proof or be otherwise subject to liability where such form was submitted and attested to in good faith.
(i) No failure or falsity of proof of the actual purchase price or value shall in any way affect the instrument recordation or the notice provided by such recordation.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §618; Acts 1953, No. 769, p. 1029; Acts 1987, No. 87-816, p. 1630, §1; Act 2012-494, p. 1444, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38820,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37974,"codeId":18245,"versionId":26173,"parentId":18238,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-22-2","shortTitle":"Section 40-22-2","catchLine":"Mortgages, Deeds of Trust, Etc., Generally.","title":"Section 40-22-2 Mortgages, Deeds of Trust, Etc., Generally.","sectionRange":null,"content":"No mortgage, deed of trust, contract of conditional sale, or other instrument of like character which is given to secure the payment of any debt which conveys any real or personal property situated within this state or any interest therein or any security agreement or financing statement provided for by the Uniform Commercial Code, except a security agreement or a financing statement relating solely to security interests in accounts, contract rights, or general intangibles, as such terms are defined in the Uniform Commercial Code, and except for the re-recordation of corrected mortgages, deeds, or instruments executed for the purpose of perfecting the title to real or personal property, specifically, but not limited to, corrections of maturity dates thereof, shall be received for record or for filing in the office of any probate judge of this state unless the following privilege or license taxes shall have been paid upon such instrument before the same shall be received for record or for filing:
(1)a. Upon all such instruments which are executed to secure or to evidence the securing of an initial indebtedness which shall not exceed $100, there shall be paid the sum of $.15, and upon all instruments which shall be executed to secure or to evidence the securing of an initial indebtedness of more than $100, there shall be paid the sum of $.15 for each $100 of such initial indebtedness or fraction thereof.
b. Upon all such instruments which are executed to secure or to evidence the securing of an open end or revolving indebtedness with any interest in property, at the option of the person offering the instrument for record or for filing, (i) there shall be paid the sum of $.15 for each $100 of such initial indebtedness or fraction thereof and the procedures set forth in paragraphs a, b, and c of subdivision (2) of this section shall be applicable; or, in lieu thereof, (ii) there shall be paid the sum of $.15 for each $100 of maximum principal indebtedness, or fraction thereof, to be secured by such instrument at any one time as stated in the instrument or any amendment thereto. In any event, the privilege or license tax to be paid upon such instruments securing or evidencing the securing of open end or revolving indebtedness with any interest in property shall not exceed the amount of $.15 for each $100 of maximum principal indebtedness, or fraction thereof, to be secured by such instrument at any one time as stated in the instrument or any amendment thereto, irrespective of the cumulative amount advanced from time to time thereunder.
(2)a. If subdivision (1)b.(i) applies and any part of the indebtedness which the mortgagor or debtor in any instrument conveying any real property situated within this state, or any interest therein, other than fixtures under the Uniform Commercial Code, is authorized to incur under the terms of the instrument has not been or will not be presently incurred at the time such instrument is offered for record, the tax shall be paid on the amount of indebtedness presently incurred, and the Department of Revenue, upon the petition of the owner of any such instrument or upon the petition of the agent or attorney of such owner, shall ascertain to its own satisfaction the amount then taxable and the amount to be incurred thereafter and determine the amount upon which the tax shall be paid at the time such instrument is offered and shall endorse its findings on such instrument. Upon the presentation of such instrument with such endorsement thereon, the probate judge of any county in which the instrument is offered, upon the payment of the tax upon the amount so ascertained by the Department of Revenue and the recording fees of the probate judge, shall accept the same for record. The Department of Revenue shall also require the owner of such instrument to execute a bond in an amount sufficient to secure to the state the privilege tax to become due and payable under this section upon the amount of the indebtedness to be incurred thereafter, such bond to be approved by the Department of Revenue and payable to the State of Alabama and conditioned that the owner of such instrument will promptly report to said Department of Revenue and to the probate judge of the county where said instrument is first filed for record, whenever such owner or his successor in interest incurs any additional indebtedness thereunder, and the amount so incurred; and that the said owner of such instrument will pay or cause to be paid to the probate judge of the county in which said instrument is first filed the privilege or license tax required under this section upon the accrual of any additional indebtedness, and the said owner of such instrument will report to the said probate judge and the Department of Revenue during the month of September of each year the amount of all indebtedness and all bonds, debentures, notes or other forms of indebtedness incurred or certified and delivered under said instrument to such date, and the amount so certified and delivered during the preceding 12 months, and the aggregate of all such evidence of indebtedness certified and delivered under such instrument prior to such year. The bond executed to secure payment of the tax herein required shall cover a term of five years; and, after the expiration of said term of five years, the owner of the instrument offered for record shall execute such further bond as may be required by the Department of Revenue covering the succeeding term of five years, and thereafter every term of five years, in the same manner so long as any of the indebtedness authorized to be incurred by such instrument has not been incurred with like condition and in such sum as the said department may prescribe.
b. Notwithstanding the provisions of paragraph a. of this subdivision, any bank, savings and loan association, insurance company, or other financial institution organized and established under the laws of the State of Alabama or the United States which is the owner of such instrument, in lieu of the foregoing procedures, may certify the amount of indebtedness presently incurred, and the probate judge of any county in which the instrument is offered, upon payment of the tax upon the amount so certified and the recording fees of the probate judge, shall accept the instrument for record. During the month of September of each year, any such bank, savings and loan association, insurance company, or other financial institution which has recorded such instruments as described hereinabove shall report to the appropriate probate judge the amount of additional indebtedness incurred under the instrument and pay any tax required upon the additional indebtedness.
c. Each probate judge will forward to the State Banking Department by the end of October a statement showing the amounts certified to him or her by each forenamed organization. The State Banking Department will then have the authority to make unannounced audits on any organization electing to use this system of reporting indebtedness. Any organization which is found to have willfully certified less than the true amount it should have certified shall be required to pay a fine equal to three times the amount of tax due on the amount of indebtedness not certified to the probate judge. This fine shall be paid into the General Fund of Alabama. In addition, any organization so fined must pay an auditing fee in accordance with established Banking Department audit fees into the funds of the State Banking Department.
(3) When any deed is filed for record which recites that part of the purchase money is unpaid, such deed to the extent of such unpaid balance shall be held and treated as a mortgage, and the mortgage tax shall be collected by the probate judge in addition to the tax for recording the instrument as a deed before recording the same, unless the balance of purchase money shall be secured by mortgage or deed of trust which has already been filed for record, and the tax thereon paid, and the fact of such prior payment shall be endorsed on the deed. When any such deed is recorded and the tax thereon is paid, and thereafter a mortgage securing the debt is filed for record, the same shall be admitted to record without the payment of the mortgage tax and the fact of such prior payment shall be endorsed on the deed.
(4) The privilege taxes herein imposed shall not be required on or for the filing of any such instrument, providing additional or substitute security for any indebtedness secured by, or the securing of which is evidenced by, an instrument previously filed, upon the filing of which the taxes provided by law have been paid or which was filed at a time when no such privilege taxes were required by law; provided, that the secured indebtedness remains unchanged in amount and in time of maturity.
(5) Upon the filing for record of such instrument and upon the payment of the tax thereon, the probate judge or his or her clerk shall certify on the instrument the fact that the said tax has been paid, and when so certified by the probate judge or his or her clerk, such instrument shall be admitted to record in any county wherein any of the property mentioned in the instrument is situated without the payment of any further tax thereon, except the fee to the probate judge for recording such instrument, and such certificate of the probate judge shall be recorded by such probate judge when such instrument is recorded. Upon the filing for record of any instrument which has been exempted by law from the payment of the tax provided for in this section, the probate judge shall certify thereon that no tax has been paid and shall stamp in bold letters on the face of said instrument “No Tax Collected,” and the certificate shall be recorded with and as a part of such instrument, and thereafter such instrument shall be received for record in any county in this state without the payment of any further tax thereon, when submitted by a tax-exempt institution, but if submitted by or transferred to an institution or person not exempt from the payment of the tax levied under this section, the probate judge shall collect the tax levied by this section upon the then unpaid balance of the secured debt together with the fee of the probate judge for recording such instrument before it will be admitted to record. The tax herein provided for shall be paid upon all contracts for the sale of real or personal property, whether the same are in the nature of a conditional sale or a bond for title, and no such contract shall be received for record until such tax shall have been paid.
(6) When the time for the payment of the indebtedness secured by, or the securing of which is evidenced by, any such instrument is extended or renewed, and the extension or renewal contract is offered for filing or for record, the tax required in this section shall be paid on the amount of indebtedness so extended or renewed; and the same shall be governed in all respects by the provisions of this article. No state, county, or municipal ad valorem tax shall be payable on any such instrument upon which the tax prescribed by this section shall have been paid, on the debt secured or evidenced thereby or on the security agreement evidenced thereby.
(7) Of the taxes collected by the probate judge under this section there shall be paid to the county treasurer of the county in which such taxes are collected one-third of the amount collected, to be accounted for by the judge of probate, and the remaining two-thirds of the amount collected to the State Treasury. The probate judge shall receive five percent of the amount collected as compensation for services in collecting the money and certifying the instrument, the five percent to be retained by the judge of probate out of the money collected under this section; but when the property described in the instrument is situated within different counties within this state, then the probate judge who collects the taxes shall pay over to the county treasurer of each of the different counties in which the property is situated an amount of the taxes that would be in proportion to the value of the property therein as compared to the whole property within this state described in the instrument.
(8) If any part of the property embraced or described in any instrument which is required under this section to pay a record privilege tax is located without this state, the indebtedness upon which the tax shall be paid for the privilege of recording such instrument shall be that proportion of the indebtedness secured by the instrument which the value of the property located in this state bears to the whole property described in the instrument. The Department of Revenue may ascertain the value of the whole property and of that part of it which is located within this state for the purpose of ascertaining the amount of the indebtedness upon which the tax shall be paid, and the value of that part of the property located within this state and the amount of the indebtedness upon which such tax shall be paid shall be ascertained in the following manner: First, the owner of any such instrument or his or her agent or attorney may petition the Department of Revenue to ascertain the value of the whole property and of that part of which is located within this state and the amount of the indebtedness upon which such tax shall be paid, and the Department of Revenue, after hearing such evidence as may be offered or as may be before it, shall fix and determine the value of that part of the property located within this state and the amount of the indebtedness upon which the tax shall be paid and shall endorse its findings on such instrument, and upon the presentation of the instrument, with such endorsements to the probate judge of the county in which any part of the property is located, such instrument shall be accepted for record upon the payment of the tax upon the amount of such indebtedness as so ascertained by the Department of Revenue and of the recording fees of the probate judge; or, second, the owner of any such instrument or his or her agent or attorney may have such instrument recorded by paying to the probate judge of the county in which the instrument is offered for record the privilege tax on the entire amount of the indebtedness secured by such instrument, and may thereupon present a petition to the Department of Revenue within 30 days after such instrument is recorded, and it shall be the duty of the Department of Revenue to ascertain the value of the whole property and of that part of it located within this state, and to fix and determine the amount of the indebtedness upon which the tax shall be paid, and the department shall thereupon ascertain such valuation and fix and determine such indebtedness and shall order the probate judge to refund the excess of privilege tax collected , and the probate judge shall comply with such order; and the tax paid upon the entire amount of such indebtedness shall be held by the probate judge until the Department of Revenue determines the amount of the indebtedness upon which such tax shall be paid.
(9) Any probate judge who shall file for record or shall receive any such instrument for record or for filing, without collecting the recording or registration tax provided for the filing, recording, or registration of such instrument, or who shall fail to certify the fact that such tax has been paid before filing such instrument shall be guilty of a misdemeanor and, upon conviction, shall be fined not less than $10 nor more than $1,000.
(10) Every petition filed with the Department of Revenue to ascertain the amount of the mortgage tax due to be paid under this section shall, when the property conveyed in the instrument offered for record is located in more than one county of the state, show the value of the property conveyed in each county in which the instrument is to be recorded.
(11) Any probate judge who fails to keep the abstract of mortgages or other instruments intended to secure the payment of moneys which are filed in his or her office for filing or for record, as he or she is required by law to keep, shall be guilty of a misdemeanor and, upon conviction, shall be fined not less than $10 nor more than $500.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §619; Acts 1953, No. 770, p. 1031; Acts 1965, No. 549, p. 811; Acts 1977, No. 671, p. 1152; Acts 1981, No. 81-662, p. 1078; Acts 1987, No. 87-816, p. 1630, §1; Act 2004-490, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38821,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37975,"codeId":18251,"versionId":14515,"parentId":18238,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-22-3","shortTitle":"Section 40-22-3","catchLine":"Tax on Mortgages Not Applicable to Any Bank Unless Applicable to All.","title":"Section 40-22-3 Tax on Mortgages Not Applicable to Any Bank Unless Applicable to All.","sectionRange":null,"content":"The term “bank” as used in this section shall be held to mean a corporation holding a charter issued by the Comptroller of the United States or the banking authorities of the State of Alabama and duly authorized to receive funds on deposit, to be repaid on demand, and to carry on the general business of banking and subject to all the laws of the state applicable to corporations carrying on the business of banking.
No tax as levied by the state in the recording of mortgages of whatever kind filed for record in the probate court in any county in the state shall be levied upon or collected from any bank in this state unless the said tax shall be applicable to and collected from all banks and banking institutions doing business in the State of Alabama.
","history":"(Acts 1947, No. 181, p. 66.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38822,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37976,"codeId":18258,"versionId":14520,"parentId":18238,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-22-4","shortTitle":"Section 40-22-4","catchLine":"Exemption of Production Credit Corporations and Associations.","title":"Section 40-22-4 Exemption of Production Credit Corporations and Associations.","sectionRange":null,"content":"No tax levied upon the recordation of mortgages, deeds of trust, and instruments of like character shall be levied upon or collected from any corporation or association organized pursuant to Subchapter IV of Chapter 7, Title 12, United States Code Annotated, with respect to any instrument executed to secure a loan made by it to one of its members for general agricultural purposes, the provisions of any other law to the contrary notwithstanding.
","history":"(Acts 1951, No. 540, p. 953.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38823,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37977,"codeId":18265,"versionId":14525,"parentId":18238,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-22-5","shortTitle":"Section 40-22-5","catchLine":"Exemption of Certain Farm Loans from Tax.","title":"Section 40-22-5 Exemption of Certain Farm Loans from Tax.","sectionRange":null,"content":"No tax levied upon the recordation of mortgages, deeds of trust, and instruments of like character shall be levied upon or collected from any corporation or association engaged exclusively in making farm or crop loans, with respect to any instrument executed to secure a loan made by it to one of its stockholders or members for general agricultural purposes, the provisions of any other law to the contrary notwithstanding. The exemption provided herein shall apply to all deeds, mortgages, and instruments of like character executed to those corporations and associations created and chartered under the provisions of that act of Congress known as the Federal Farm Loan Act, as amended by the Farm Credit Act of 1933.
","history":"(Acts 1953, No. 841, p. 1131; Acts 1969, No. 503, p. 960.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38824,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37978,"codeId":18268,"versionId":14529,"parentId":18238,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-22-5.1","shortTitle":"Section 40-22-5.1","catchLine":"Exemption of Certain Conveyances by Religious Organizations from Tax.","title":"Section 40-22-5.1 Exemption of Certain Conveyances by Religious Organizations from Tax.","sectionRange":null,"content":"No tax under Section 40-22-1 shall be levied upon the recordation of any deed, bill of sale, or any similar instrument or conveyances of like character which conveys title to or any interest in any real or personal property within this state and which is executed and delivered for the purpose of carrying out the division of any church, congregation, parish, religious congregation, religious assembly, diocese, or other religious organization into two or more similar organizations or for the purpose of carrying out a merger or consolidation of any two or more such religious organizations into a single organization. This exemption shall apply to such recording regardless of the date on which the division, merger, or consolidation occurred.
","history":"(Acts 1976, No. 274, p. 304.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38825,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37979,"codeId":18275,"versionId":14536,"parentId":18238,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-22-6","shortTitle":"Section 40-22-6","catchLine":"Tax Upon Recording Transfer of Instrument Recorded by Exempt Institution - Generally.","title":"Section 40-22-6 Tax Upon Recording Transfer of Instrument Recorded by Exempt Institution - Generally.","sectionRange":null,"content":"If any mortgage, deed of trust, contract of conditional sale, or other instrument of like character heretofore or hereafter filed for record in any probate office of this state which was or shall be given to secure the payment of any debt incurred to a corporation, organization, or institution now or hereafter exempt by law from the payment of the recording privilege tax imposed by Section 40-22-2 and upon which such recording privilege tax has not been previously paid has been heretofore or be hereafter transferred to a person, corporation, organization, or institution not exempt from payment of such tax and such transfer is presented for record within this state, such transfer shall be received for record upon payment of the privilege tax imposed by said section upon the then unpaid balance of the secured debt and the recording fees of the probate judge.
","history":"(Acts 1951, No. 816, p. 1449, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38826,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37980,"codeId":18281,"versionId":14542,"parentId":18238,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-22-7","shortTitle":"Section 40-22-7","catchLine":"Tax Upon Recording Transfer of Instrument Recorded by Exempt Institution - Certification of Payment of Tax.","title":"Section 40-22-7 Tax Upon Recording Transfer of Instrument Recorded by Exempt Institution - Certification of Payment of Tax.","sectionRange":null,"content":"Upon the filing for record of a transfer under Section 40-22-6 and upon payment of such tax and recording fees, the probate judge or his clerk shall certify on such transfer the fact that the said tax has been paid; and, when so certified by the probate judge or his clerk, such transfer and all subsequent transfers thereof shall be admitted to record in any county wherein any of the property mentioned in the mortgage, deed of trust, contract of conditional sale, or other instrument of like character so transferred is situated without the payment of any further tax thereon, except the fee to the probate judge for recording such transfer.
","history":"(Acts 1951, No. 816, p. 1449, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38827,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37981,"codeId":18287,"versionId":14546,"parentId":18238,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-22-8","shortTitle":"Section 40-22-8","catchLine":"Tax Upon Recording Transfer of Instrument Recorded by Exempt Institution - Transfers Not Subject to Tax Imposed by Section 40-22-1.","title":"Section 40-22-8 Tax Upon Recording Transfer of Instrument Recorded by Exempt Institution - Transfers Not Subject to Tax Imposed by Section 40-22-1.","sectionRange":null,"content":"No transfer under Section 40-22-6 hereafter filed for record shall be subject to the recording privilege tax imposed by Section 40-22-1.
","history":"(Acts 1951, No. 816, p. 1449, §3.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38828,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37982,"codeId":18291,"versionId":14551,"parentId":18238,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-22-9","shortTitle":"Section 40-22-9","catchLine":"Tax Upon Recording Transfer of Instrument Recorded by Exempt Institution - Debt Secured by Instrument so Transferred Exempt from Ad Valorem Taxes.","title":"Section 40-22-9 Tax Upon Recording Transfer of Instrument Recorded by Exempt Institution - Debt Secured by Instrument so Transferred Exempt from Ad Valorem Taxes.","sectionRange":null,"content":"If the recording privilege tax imposed by Sections 40-22-6 through 40-22-11 of this title or by Section 40-22-2 is paid, the debt secured by the instrument so transferred shall thereafter be exempt from any ad valorem tax, either state, county, or municipal.
","history":"(Acts 1951, No. 816, p. 1449, §4.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38829,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37983,"codeId":18295,"versionId":14555,"parentId":18238,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-22-10","shortTitle":"Section 40-22-10","catchLine":"Tax Upon Recording Transfer of Instrument Recorded by Exempt Institution - Exemption of Debt Secured by Instrument Upon Which Recording Tax Has Previously Been Paid.","title":"Section 40-22-10 Tax Upon Recording Transfer of Instrument Recorded by Exempt Institution - Exemption of Debt Secured by Instrument Upon Which Recording Tax Has Previously Been Paid.","sectionRange":null,"content":"If any transfer of any such mortgage, deed of trust, contract of conditional sale, or other instrument of like character described in Section 40-22-6 has heretofore been filed for record in any probate office of this state and the recording privilege tax imposed by Section 40-22-1 or Section 40-22-2 has been paid thereon, the debt secured by the instrument so transferred shall be exempt from any ad valorem tax, either state, county, or municipal.
","history":"(Acts 1951, No. 816, p. 1449, §5.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38830,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37984,"codeId":18301,"versionId":14562,"parentId":18238,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-22-11","shortTitle":"Section 40-22-11","catchLine":"Tax Upon Recording Transfer of Instrument Recorded by Exempt Institution - Waiver of Exemption from Payment of Recording Tax.","title":"Section 40-22-11 Tax Upon Recording Transfer of Instrument Recorded by Exempt Institution - Waiver of Exemption from Payment of Recording Tax.","sectionRange":null,"content":"Any corporation, organization, or institution now or hereafter exempt from the recording privilege tax imposed by Section 40-22-2 may, at the time of presenting for record any mortgage, deed of trust, contract of conditional sale or other instrument of like character executed to it, waive its exemption from payment of such recording privilege tax with respect to such instrument and pay the tax imposed by said section at the time such instrument is presented to the judge of probate for filing, and no transfer of the indebtedness thereby secured, thereafter presented for recording, shall be subject to any recording privilege tax, but shall be filed for record by the judge of probate upon the payment of the recording fees to the judge of probate.
","history":"(Acts 1951, No. 816, p. 1449, §6.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38831,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37985,"codeId":18316,"versionId":14569,"parentId":18238,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-22-12","shortTitle":"Section 40-22-12","catchLine":"Tax Upon Recording Transfer of Instrument Recorded by Exempt Institution - Construction of Sections 40-22-6 through 40-22-11.","title":"Section 40-22-12 Tax Upon Recording Transfer of Instrument Recorded by Exempt Institution - Construction of Sections 40-22-6 through 40-22-11.","sectionRange":null,"content":"Sections 40-22-6 through 40-22-11 are remedial and shall be liberally construed. If any section or provision of such sections is held to be void or unconstitutional, such holding shall not affect the validity of any other provisions of such sections.
","history":"(Acts 1951, No. 816, p. 1449, §7.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38832,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37986,"codeId":18329,"versionId":null,"parentId":40,"effectiveDate":null,"supersessionDate":null,"type":"Chapter","displayId":"23","shortTitle":"Chapter 23","catchLine":"Sales and Use Taxes.","title":"Chapter 23 Sales and Use Taxes.","sectionRange":"§40-23-1 to §40-23-263","content":null,"history":null,"numChildren":10,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":38833,"hierarchyLevel":1,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37987,"codeId":18330,"versionId":null,"parentId":18329,"effectiveDate":null,"supersessionDate":null,"type":"Article","displayId":"1","shortTitle":"Article 1","catchLine":"Sales Tax.","title":"Article 1 Sales Tax.","sectionRange":"§40-23-1 to §40-23-50","content":null,"history":null,"numChildren":2,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":38834,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37988,"codeId":18334,"versionId":null,"parentId":18330,"effectiveDate":null,"supersessionDate":null,"type":"Division","displayId":"1","shortTitle":"Division 1","catchLine":"General Provisions.","title":"Division 1 General Provisions.","sectionRange":"§40-23-1 to §40-23-40","content":null,"history":null,"numChildren":42,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":38835,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37989,"codeId":18336,"versionId":50088,"parentId":18334,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-1","shortTitle":"Section 40-23-1","catchLine":"Definitions; Transactions Considered or Not Considered Sales.","title":"Section 40-23-1 Definitions; Transactions Considered or Not Considered Sales.","sectionRange":null,"content":"(a) For the purpose of this division, the following terms have the respective meanings ascribed by this section:
(1) PERSON or COMPANY. Used interchangeably, includes any individual, firm, copartnership, association, corporation, receiver, trustee, or any other group or combination acting as a unit and the plural as well as the singular number, unless the intention to give a more limited meaning is disclosed by the context.
(2) DEPARTMENT. The Department of Revenue of the State of Alabama.
(3) COMMISSIONER. The Commissioner of Revenue of the State of Alabama.
(4) TAX YEAR or TAXABLE YEAR. The calendar year.
(5) SALE or SALES. Installment and credit sales and the exchange of properties as well as the sale thereof for money, every closed transaction constituting a sale. Provided, however, a transaction shall not be closed or a sale completed until the time and place when and where title is transferred by the seller or seller’s agent to the purchaser or purchaser’s agent, and for the purpose of determining transfer of title, a common carrier or the U.S. Postal Service shall be deemed to be the agent of the seller, regardless of any F.O.B. point and regardless of who selects the method of transportation, and regardless of by whom or the method by which freight, postage, or other transportation charge is paid. Provided further that, where billed as a separate item to and paid by the purchaser, the freight, postage, or other transportation charge paid to a common carrier or the U.S. Postal Service is not a part of the selling price.
(6) GROSS PROCEEDS OF SALES. The value proceeding or accruing from the sale of tangible personal property, and including the proceeds from the sale of any property handled on consignment by the taxpayer, including merchandise of any kind and character without any deduction on account of the cost of the property sold, the cost of the materials used, labor or service cost, interest paid, any consumer excise taxes that may be included within the sales price of the property sold, or any other expenses whatsoever, and without any deductions on account of losses; provided, that cash discounts allowed and taken on sales shall not be included, and “gross proceeds of sales” shall not include the sale price of property returned by customers when the full sales price thereof is refunded either in cash or by credit. The term “gross proceeds of sale” shall also mean and include the reasonable and fair market value of any tangible personal property previously purchased at wholesale which is withdrawn or used from the business or stock and used or consumed in connection with a business, and shall also mean and include the reasonable and fair market value of any tangible personal property previously purchased at wholesale which is withdrawn from the business or stock and used or consumed by any person so withdrawing the same, except property that has been previously withdrawn from business or stock and so used or consumed with respect to which property the tax has been paid because of previous withdrawal, use, or consumption, except property that enters into and becomes an ingredient or component part of tangible personal property or products manufactured or compounded for sale and not for the personal and private use or consumption of any person so withdrawing, using, or consuming the same, and except refinery, residue, or fuel gas, whether in a liquid or gaseous state, that has been generated by, or is otherwise a by-product of, a petroleum-refining process, which gas is then utilized in the process to generate heat or is otherwise utilized in the distillation or refining of petroleum products.
In the case of the retail sale of equipment, accessories, fixtures, and other similar tangible personal property used in connection with the sale of commercial mobile services as defined herein, or in connection with satellite television services, at a price below cost, “gross proceeds of sale” shall only include the stated sales price thereof and shall not include any sales commission or rebate received by the seller as a result of the sale. As used herein, the term “commercial mobile services” shall have the same meaning as that term has in 47 U.S.C. §§ 153(n) and 332(d), as in effect from time to time.
(7) TAXPAYER. Any person liable for taxes hereunder.
(8) GROSS RECEIPTS. The value proceeding or accruing from the sale of tangible personal property, including merchandise and commodities of any kind and character, all receipts actual and accrued, by reason of any business engaged in, not including, however, interest, discounts, rentals of real estate, or royalties, and without any deduction on account of the cost of the property sold, the cost of the materials used, labor or service cost, interest paid, any consumer excise taxes that may be included in the sales price of the property sold, or any other expenses whatsoever and without any deductions on account of losses. The term “gross receipts” shall also mean and include the reasonable and fair market value of any tangible personal property previously purchased at wholesale which is withdrawn or used from the business or stock and used or consumed in connection with a business, and shall also mean and include the reasonable and fair market value of any tangible personal property previously purchased at wholesale which is withdrawn from the business or stock and used or consumed by any person so withdrawing the same, except property which has been previously withdrawn from business or stock and so used or consumed and with respect to which property the tax has been paid because of previous withdrawal, use, or consumption, except property which enters into and becomes an ingredient or component part of tangible personal property or products manufactured or compounded for sale as provided in subdivision (9) and not for the personal and private use or consumption of any person so withdrawing, using, or consuming the same, and except refinery, residue, or fuel gas, whether in a liquid or gaseous state, that has been generated by, or is otherwise a by-product of, a petroleum-refining process, which gas is then utilized in the process to generate heat or is otherwise utilized in the distillation or refining of petroleum products.
(9) WHOLESALE SALE or SALE AT WHOLESALE. Any one of the following:
a. A sale of tangible personal property by wholesalers to licensed retail merchants, jobbers, dealers, or other wholesalers for resale and does not include a sale by wholesalers to users or consumers, not for resale.
b. A sale of tangible personal property or products, including iron ore, and including the furnished container and label of the property or products, to a manufacturer or compounder which enter into and become an ingredient or component part of the tangible personal property or products that the manufacturer or compounder manufactures or compounds for sale, whether or not the tangible personal property or product used in manufacturing or compounding a finished product is used with the intent that it becomes a component of the finished product; provided, however, that it is the intent of this section that no sale of capital equipment, machinery, tools, or product shall be included in the term “wholesale sale.” The term “capital equipment, machinery, tools, or product” shall mean property that is subject to depreciation allowances for Alabama income tax purposes.
c. A sale of containers intended for one-time use only, and the labels thereof, when containers are sold without contents to persons who sell or furnish containers along with the contents placed therein for sale by persons.
d. A sale of pallets intended for one-time use only when pallets are sold without contents to persons who sell or furnish pallets along with the contents placed thereon for sale by persons.
e. A sale to a manufacturer or compounder, of crowns, caps, and tops intended for one-time use employed and used upon the containers in which a manufacturer or compounder markets his products.
f. A sale of containers to persons engaged in selling or otherwise supplying or furnishing baby chicks to growers thereof where containers are used for the delivery of chicks or a sale of containers for use in the delivery of eggs by the producer thereof to the distributor or packer of eggs even though containers used for delivery of baby chicks or eggs may be recovered for reuse.
g. A sale of bagging and ties used in preparing cotton for market.
h. A sale to meat packers, manufacturers, compounders, or processors of meat products of all casings used in molding or forming wieners and Vienna sausages even though casings may be recovered for reuse.
i. A sale of commercial fish feed including concentrates, supplements, and other feed ingredients when substances are used as ingredients in mixing and preparing feed for fish raised to be sold on a commercial basis.
j. A sale of bait used to capture or attempt to capture fish or other seafood in the process of commercial fishing by a holder of a commercial license issued pursuant to Chapter 12 of Title 9.
k. A sale of tangible personal property to any person engaging in the business of leasing or renting tangible personal property to others, if tangible personal property is purchased for the purpose of leasing or renting it to others under a transaction subject to the privilege or license tax levied in Article 4 of Chapter 12 of this title against any person engaging in the business of leasing or renting tangible personal property to others.
l. A purchase or withdrawal of parts or materials from stock by any person licensed under this division where parts or materials are used in repairing or reconditioning the tangible personal property of a licensed person, which tangible personal property is a part of the stock of goods of a licensed person, offered for sale by him or her, and not for use or consumption of a licensed person.
(10) SALE AT RETAIL or RETAIL SALE. All sales of tangible personal property except those defined as wholesale sales. The quantities of goods sold or prices at which sold are immaterial in determining whether or not a sale is at retail. Sales of building materials to contractors, builders, or landowners for resale or use in the form of real estate are retail sales in whatever quantity sold. Sales of building materials, fixtures, or other equipment to a manufacturer or builder of modular buildings for use in manufacturing, building, or equipping a modular building ultimately becoming a part of real estate situated in the State of Alabama are retail sales, and the use, sale, or resale of building shall not be subject to the tax. Sales of tangible personal property to undertakers and morticians are retail sales and subject to the tax at the time of purchase, but are not subject to the tax on resale to the consumer. Sales of tangible personal property or products to manufacturers, quarry operators, mine operators, or compounders, which are used or consumed by them in manufacturing, mining, quarrying, or compounding and do not become an ingredient or component part of the tangible personal property manufactured or compounded as provided in subdivision (9) are retail sales. The term “sale at retail” or “retail sale” shall also mean and include the withdrawal, use, or consumption of any tangible personal property by any one who purchases same at wholesale, except property that has been previously withdrawn from the business or stock and so used or consumed and with respect to which property tax has been paid because of previous withdrawal, use, or consumption, except property that enters into and becomes an ingredient or component part of tangible personal property or products manufactured or compounded for sale as provided in subdivision (9) and not for the personal and private use or consumption of any person so withdrawing, using, or consuming the same; and wholesale purchaser shall report and pay the taxes thereon. In the case of the sale of equipment, accessories, fixtures, and other similar tangible personal property used in connection with the sale of commercial mobile services as defined in subdivision (6), or in connection with satellite television services, at a price below cost, the term “sale at retail” and “retail sale” shall include those sales, and those sales shall not also be taxable as a withdrawal, use, or consumption of such tangible personal property.
(11) BUSINESS. All activities engaged in, or caused to be engaged in, with the object of gain, profit, benefit, or advantage, either direct or indirect, and not excepting subactivities producing marketable commodities used or consumed in the main business activity, each of which subactivities shall be considered business engaged in, taxable in the class in which it falls.
(12) AUTOMOTIVE VEHICLE. A power shovel, dragline, crawler, crawler crane, ditcher, or any similar machine that is self-propelled, in addition to self-propelled machines that are used primarily as instruments of conveyance.
(13) PREPAID TELEPHONE CALLING CARD. A sale of a prepaid telephone calling card or a prepaid authorization number, or both, shall be deemed the sale of tangible personal property subject to the tax imposed on the sale of tangible personal property pursuant to this chapter. For purposes of this subdivision, the sale of prepaid wireless service that is evidenced by a physical card constitutes the sale of a prepaid telephone calling card, and the sale of prepaid wireless service that is not evidenced by a physical card constitutes the sale of a prepaid authorization number.
(14) PREPAID WIRELESS SERVICE. The right to use mobile telecommunications service, which must be paid for in advance and that is sold in predetermined units or dollars of which the number declines with use in a known amount, and which may include rights to use non-telecommunications services or to download digital products or digital content. For purposes of this subdivision, mobile telecommunications service has the meaning ascribed by Section 40-21-120.
(15) CONSUMABLE VAPOR PRODUCT. Any nicotine liquid solution or other material containing nicotine that is depleted when used as a vapor product.
(16) VAPOR PRODUCTS. Any non-lighted, noncombustible product that employs a mechanical heating element, battery, or electronic circuit regardless of shape or size and that can be used to produce vapor from nicotine in a solution. The term includes any vapor cartridge or other container of nicotine in a solution or other form that is intended to be used with or in an electronic cigarette, electronic cigar, electronic cigarillo, electronic pipe, or similar product or device. The term does not include any product regulated by the United States Food and Drug Administration under Chapter V of the Federal Food, Drug, and Cosmetic Act.
(17) PRODUCER VALUE ADDED AGRICULTURAL PRODUCTS. Fruits or other agricultural products that have undergone some degree of further processing by the original producer of the agricultural product, including, but not limited to, whole cuts of meat, bound cut flowers, jams, jellies, or boiled or roasted peanuts.
(18) COMMERCIAL FISHING. The activity of catching or processing fish or other seafood regularly and exclusively as a means of livelihood by a holder of a commercial license issued pursuant to Chapter 12 of Title 9. The term includes shellfish farmers, shrimpers, oysterers, lobsterers, and crabbers.
(19) COMMERCIAL FISHING VESSEL. Any vessel whose masters and owners are regularly and exclusively engaged in commercial fishing as their means of livelihood.
(20) FOOD. Food as defined in 7 U.S.C. § 2012, for the purposes of the federal Supplemental Nutrition Assistance Program regardless of where or by what means food is sold. In the event that the federal Supplemental Nutrition Assistance Program definition no longer exists, the Legislature shall provide a new definition of “food” by general law.
(b) The use within this state of tangible personal property by the manufacturer thereof, as building materials in the performance of a construction contract, for the purposes of this division, shall be considered as a retail sale thereof by the manufacturer, who shall also be construed as the ultimate consumer of materials or property, and who shall be required to report transaction and pay the sales tax thereon, based upon the reasonable and fair market price thereof at the time and place where same are used or consumed by the manufacturer. Where the contractor is the manufacturer or compounder of ready-mix concrete or asphalt plant mix used in the performance of a contract, whether the ready-mix concrete or asphalt plant mix is manufactured or compounded at the job site or at a fixed or permanent plant location, the tax applies only to the cost of the ingredients that become a component part of the ready-mix concrete or the asphalt plant mix. The provisions of this subsection shall not apply to any tangible personal property that is specifically exempted from the tax levied in this division.
(c) The sale of lumber by a lumber manufacturer to a trucker for resale is a sale at wholesale as sales are defined herein where the trucker is either a licensed dealer in lumber or, if a resident of Alabama, has registered with the Department of Revenue, and has received therefrom a certificate of registration or, if a nonresident of this state purchasing lumber for resale outside the State of Alabama, has furnished to the lumber manufacturer his or her name, address, and the vehicle license number of the truck in which the lumber is to be transported, which name, address, and vehicle license number shall be shown on the sales invoice rendered by the lumber manufacturer. The certificate provided for herein shall be valid for the calendar year of its issuance and may be renewed from year to year on application to the Department of Revenue on or before January 31 of each succeeding year; provided, that if not renewed the certificate shall become invalid for the purpose of this division on February 1.
(d) The dispensing or transferring of ophthalmic materials, including lenses, frames, eyeglasses, contact lenses, and other therapeutic optic devices, to a patient by a licensed ophthalmologist, as a part of his or her professional service, for purposes of this division, shall constitute a sale, subject to the state sales tax. The licensed ophthalmologist or licensed optometrist shall collect the state sales tax. In no event shall the providing of professional services in connection with the dispensing or transferring of ophthalmic materials, including dispensing fees or fitting fees, by a licensed ophthalmologist or licensed optometrist be considered a sale subject to the state sales tax. When the ophthalmic materials are purchased by a consumer covered by a third party benefit plan, including Medicare, the sales tax shall be applicable to the amount that the ophthalmologist, optometrist, or optician is reimbursed by the third party benefit plan plus the amount that the consumer pays to the ophthalmologist, optometrist, or optician at the time of the sale. All transfers of ophthalmic materials by opticians or optometrists shall be considered retail sales subject to the state sales tax. The term “supplier” shall include but not be limited to optical laboratories, ophthalmic material wholesalers, or anyone selling ophthalmic materials to ophthalmologists.
(e) Notwithstanding the above, the withdrawal, use, or consumption of a manufactured product by the manufacturer thereof in quality control testing performed by employees or independent contractors of the taxpayer, for purposes of this division, shall not be deemed or considered to constitute a transaction subject to sales tax, nor shall a gift by the manufacturer of a manufactured product, withdrawn from the manufacturer’s inventory, to an entity listed in 26 U.S.C. §§ 170(b) or (c), be considered a transaction subject to sales tax.
(f) Notwithstanding the foregoing, a gift by a retailer of a product or products where the aggregate retail value of any single gift is equal to or less than ten thousand dollars ($10,000), withdrawn from the retailer’s inventory, to an entity listed in 26 U.S.C. §§ 170(b) or (c) shall not be deemed or considered to constitute a transaction subject to sales and use tax.
","history":"(Acts 1959, 2nd Ex. Sess., No. 100, p. 298, §1; Acts 1963, No. 292, p. 750; Acts 1965, No. 577, p. 1074; Acts 1965, No. 692, p. 1285; Acts 1965, No. 791, p. 1477; Acts 1966, Ex. Sess., No. 409, p. 554; Acts 1971, 1st Ex. Sess., No. 100, p. 174; Acts 1971, No. 2398, p. 3829; Acts 1981, No. 81-596, p. 987, §1; Acts 1982, No. 82-402, p. 608; Acts 1983, No. 83-720, p. 1167; Acts 1986, No. 86-536, p. 1039; Acts 1986, Ex. Sess., No. 86-689, p. 87; Acts 1992, No. 92-343, p. 720, §3; Acts 1995, No. 95-513, p. 1028, §1; Acts 1995, No. 95-608, p. 1298, §1; Acts 1996, 2nd Ex. Sess., No. 96-887, p. 1713, §1; Acts 1997, No. 97-648, p. 1201, §1; Act 97-867 1st Sp. Sess., p. 208, §4; Act 99-570, p. 1122, §1; Act 2006-583, p. 1537, §2; Act 2013-333, p. 1165, §1; Act 2014-336, p. 1240, §1; Act 2015-535, 2nd Sp. Sess., p. 1901, §1; Act 2022-291, §2; Act 2022-199, §1; Act 2023-554, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38836,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37990,"codeId":55331,"versionId":48358,"parentId":18334,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-1.1","shortTitle":"Section 40-23-1.1","catchLine":"Limitations on the Extension, Expansion, or Modification of Exemptions; Rulemaking Authority.","title":"Section 40-23-1.1 Limitations on the Extension, Expansion, or Modification of Exemptions; Rulemaking Authority.","sectionRange":null,"content":"(a) Notwithstanding any other provision of this chapter to the contrary, no exemption provided by existing law in this chapter shall be extended, expanded, or modified by a Joint Resolution of the Legislature. Any Joint Resolution passed in violation of this provision shall be null and void.
(b) The Department of Revenue may adopt rules for the implementation and administration of Act 2022-199.
","history":"(Act 2022-293, §2; Act 2022-199, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38837,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37992,"codeId":18352,"versionId":22563,"parentId":18334,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-2.1","shortTitle":"Section 40-23-2.1","catchLine":"Only One Municipal or County Sales, Etc., Tax Collected on Same Sale; Payment to Improper Locality.","title":"Section 40-23-2.1 Only One Municipal or County Sales, Etc., Tax Collected on Same Sale; Payment to Improper Locality.","sectionRange":null,"content":"(a) If a sales tax, gross receipts tax in the nature of a sales tax, as defined in Section 40-2A-3(8), use tax, or rental tax levied by or on behalf of an Alabama municipality is paid under a requirement of law, the property which is the subject of such tax, when imported for use, storage, or consumption into another Alabama municipality, is not subject to the sales tax, use tax, or rental tax regardless of rate, which is required by the second municipality under any municipal ordinance or any act of the Legislature. The collecting agency shall require such proof of payment of tax to another municipality as is deemed necessary and proper.
(b) If a sales tax, gross receipts tax in the nature of a sales tax, use tax, or rental tax levied by or on behalf of an Alabama county is paid under a requirement of law, the property which is the subject of such tax, when imported for use, storage, or consumption into another Alabama county, is not subject to the sales, use, or rental tax, regardless of rate, which is required by the second county under any county ordinance, resolution, or any act of the Legislature. The collecting agency shall require such proof of payment of the tax to another Alabama county as is deemed necessary and proper.
(c) This section applies to all municipalities in Alabama levying or administering a sales tax, gross receipts tax in the nature of a sales tax, use tax, or rental tax and all counties in Alabama levying or administering a sales tax, gross receipts tax in the nature of a sales tax, use tax, or rental tax. It is the intent of this section that only one municipal sales, use, rental, or gross receipts tax in the nature of a sales tax, and only one county sales, use, rental, or gross receipts tax in the nature of a sales tax be collected or paid on the same sale or rental transaction. To that end, if a sales tax, gross receipts tax in the nature of a sales tax, use tax, or rental tax owed to one municipality or county, hereinafter referred to as the “proper locality,” is erroneously paid to a different municipality or county in good faith, based on a reasonable interpretation of the enabling ordinance, resolution, or act levying or authorizing the tax, but not under a requirement of law, the municipality or county receiving the erroneous payment shall refund the overpaid tax, without interest, to the taxpayer within 60 days of the taxpayer’s compliance with the applicable refund procedures. In order to avoid the accrual of interest and any otherwise applicable penalties on the tax due the proper locality, the taxpayer making the erroneous payment must comply with the applicable refund procedures within 60 days of receiving notice from a county, municipality, or its agent of the erroneous payment. If the taxpayer complies with the refund procedure in a timely manner, the proper locality shall not assess or attempt to assess the tax, or any related interest or otherwise applicable penalty thereon, and no interest or penalty thereon shall accrue, until the date of receipt of the overpayment by the taxpayer or the taxpayer’s agent. However, the taxpayer’s failure to comply with the refund procedures within the requisite 60-day period shall cause interest and any applicable penalties to accrue on the tax to which the proper locality is entitled from the sixty-first day and until such time as the tax is paid. The taxpayer shall remit the disputed tax to the proper localities within 15 days after receipt. Provided, that if the applicable rate of sales tax or gross receipts tax in the nature of a sales tax imposed by the municipality or county receiving an erroneous payment of the sales or gross receipts tax exceeds the rate of sales or gross receipts tax imposed by the proper locality under a requirement of law, the municipality or county that erroneously received the tax shall not be obligated to refund the difference unless the taxpayer properly files the applicable petition for refund.
","history":"(Acts 1987, No. 87-579, p. 926, §§1-3; Act 98-192, p. 310, §9.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38839,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37993,"codeId":18361,"versionId":14604,"parentId":18334,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-3","shortTitle":"Section 40-23-3","catchLine":"Exclusion of Certain Municipal Privilege License Taxes.","title":"Section 40-23-3 Exclusion of Certain Municipal Privilege License Taxes.","sectionRange":null,"content":"Municipal privilege license taxes which are levied and collected by the application of a flat percentage rate of gross sales, or gross receipts from sales, and which are passed on directly by the licensee-seller to the purchaser-consumer shall be excluded from gross sales, or gross receipts, as the case may be, in the computation of the sales tax levied by this state, under the provisions of this division.
","history":"(Acts 1961, No. 652, p. 790; Acts 1962, Ex. Sess., No. 140, p. 181.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38840,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37994,"codeId":18363,"versionId":51217,"parentId":18334,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-4","shortTitle":"Section 40-23-4","catchLine":"Exemptions.","title":"Section 40-23-4 Exemptions.","sectionRange":null,"content":"(a) There are exempted from the provisions of this division and from the computation of the amount of the tax levied, assessed, or payable under this division the following:
(1) The gross proceeds of the sales of lubricating oil and gasoline as defined in Sections 40-17-30 and 40-17-170 and the gross proceeds from those sales of lubricating oil destined for out-of-state use which are transacted in a manner whereby an out-of-state purchaser takes delivery of such oil at a distributor’s plant within this state and transports it out-of-state, which are otherwise taxed.
(2) The gross proceeds of the sale, or sales, of fertilizer when used for agricultural purposes. The word “fertilizer” shall not be construed to include cottonseed meal, when not in combination with other materials.
(3) The gross proceeds of the sale, or sales, of seeds for planting purposes and baby chicks and poults. Nothing herein shall be construed to exempt or exclude from the computation of the tax levied, assessed, or payable, the gross proceeds of the sale or sales of plants, seedlings, nursery stock, or floral products.
(4) The gross proceeds of sales of insecticides and fungicides when used for agricultural purposes or when used by persons properly permitted by the Department of Agriculture and Industries or any applicable local or state governmental authority for structural pest control work and feed for livestock and poultry, but not including prepared food for dogs and cats.
(5) The gross proceeds of sales of all livestock by whomsoever sold, and also the gross proceeds of poultry and other products of the farm, dairy, grove, or garden, when in the original state of production or condition of preparation for sale, when such sale or sales are made by the producer or members of the producer’s immediate family or for the producer by those employed by the producer to assist in the production thereof. Nothing herein shall be construed to exempt or exclude from the measure or computation of the tax levied, assessed, or payable hereunder, the gross proceeds of sales of poultry or poultry products when not products of the farm.
(6) Cottonseed meal exchanged for cottonseed at or by cotton gins.
(7) The gross receipts from the business on which, or for engaging in which, a license or privilege tax is levied by or under Sections 40-21-50, 40-21-53, and 40-21-56 through 40-21-60; provided, that nothing contained in this subdivision shall be construed to exempt or relieve the person or persons operating the business enumerated in these sections from the payments of the tax levied by this division upon or measured by the gross proceeds of sales of any tangible personal property, except gas and water, the gross receipts from the sale of which are the measure of the tax levied by Section 40-21-50, merchandise or other tangible commodities sold at retail by the persons, unless the gross proceeds of sale thereof are otherwise specifically exempted by this division.
(8) The gross proceeds of sales or gross receipts of or by any person, firm, or corporation, from the sale of transportation, gas, water, or electricity, of the kinds and natures, the rates and charges for which, when sold by public utilities, are customarily fixed and determined by the Public Service Commission of Alabama or like regulatory bodies.
(9) The gross proceeds of the sale, or sales of wood residue, coal, or coke to manufacturers, electric power companies, and transportation companies for use or consumption in the production of by-products, or the generation of heat or power used in manufacturing tangible personal property for sale, for the generation of electric power or energy for use in manufacturing tangible personal property for sale or for resale, or for the generation of motive power for transportation.
(10) The gross proceeds from the sale or sales of fuel and supplies for use or consumption aboard ships, vessels, towing vessels, or barges, or drilling ships, rigs or barges, or seismic or geophysical vessels, or other watercraft (herein for purposes of this exemption being referred to as “vessels”) engaged in foreign or international commerce or in interstate commerce; provided, that nothing in this division shall be construed to exempt or exclude from the measure of the tax herein levied the gross proceeds of sale or sales of material and supplies to any person for use in fulfilling a contract for the painting, repair, or reconditioning of vessels, barges, ships, other watercraft, and commercial fishing vessels of over five tons load displacement as registered with the U.S. Coast Guard and licensed by the State of Alabama Department of Conservation and Natural Resources.
For purposes of this subdivision, it shall be presumed that vessels engaged in the transportation of cargo between ports in the State of Alabama and ports in foreign countries or possessions or territories of the United States or between ports in the State of Alabama and ports in other states are engaged in foreign or international commerce or interstate commerce, as the case may be. For the purposes of this subdivision, the engaging in foreign or international commerce or interstate commerce shall not require that the vessel involved deliver cargo to or receive cargo from a port in the State of Alabama. For purposes of this subdivision, vessels carrying passengers for hire, and no cargo, between ports in the State of Alabama and ports in foreign countries or possessions or territories of the United States or between ports in the State of Alabama and ports in other states shall be engaged in foreign or international commerce or interstate commerce, as the case may be, if, and only if, both of the following conditions are met: (i) The vessel in question is a vessel of at least 100 gross tons; and (ii) the vessel in question has an unexpired certificate of inspection issued by the United States Coast Guard or by the proper authority of a foreign country for a foreign vessel, which certificate is recognized as acceptable under the laws of the United States. Vessels that are engaged in foreign or international commerce or interstate commerce shall be deemed for the purposes of this subdivision to remain in such commerce while awaiting or under repair in a port of the State of Alabama if the vessel returns after such repairs are completed to engaging in foreign or international commerce or interstate commerce. For purposes of this subdivision, seismic or geophysical vessels which are engaged either in seismic or geophysical tests or evaluations exclusively in offshore federal waters or in traveling to or from conducting such tests or evaluations shall be deemed to be engaged in international or foreign commerce. For purposes of this subdivision, proof that fuel and supplies purchased are for use or consumption aboard vessels engaged in foreign or international commerce or in interstate commerce may be accomplished by the merchant or seller securing the duly signed certificate of the vessel owner, operator, or captain or such person’s respective agent, on a form prescribed by the department, that the fuel and supplies purchased are for use or consumption aboard vessels engaged in foreign or international commerce or in interstate commerce. Any person filing a false certificate shall be guilty of a misdemeanor and upon conviction shall be fined not less than twenty-five dollars ($25) nor more than five hundred dollars ($500) for each offense. Each false certificate filed shall constitute a separate offense. Any person filing a false certificate shall be liable to the department for all taxes imposed by this division upon the merchant or seller, together with any interest or penalties thereon, by reason of the sale or sales of fuel and supplies applicable to the false certificate. If a merchant or seller of fuel and supplies secures the certificate herein mentioned, properly completed, the merchant or seller shall not be liable for the taxes imposed by this division, if the merchant or seller had no knowledge that the certificate was false when it was filed with the merchant or seller.
(11) The gross proceeds of sales of tangible personal property to the State of Alabama, to the counties within the state and to incorporated municipalities of the State of Alabama.
(12) The gross proceeds of the sale or sales of railroad cars, vessels, barges, and commercial fishing vessels of over five tons load displacement as registered with the U.S. Coast Guard and licensed by the State of Alabama Department of Conservation and Natural Resources, when sold by the manufacturers or builders thereof.
(13) The gross proceeds of the sale or sales of materials, equipment, and machinery that, at any time, enter into and become a component part of ships, vessels, towing vessels or barges, or drilling ships, rigs or barges, or seismic or geophysical vessels, other watercraft and commercial fishing vessels of over five tons load displacement as registered with the U.S. Coast Guard and licensed by the State of Alabama Department of Conservation and Natural Resources. Additionally, the gross proceeds from the sale or sales of lifeboats, personal flotation devices, ring life buoys, survival craft equipment, distress signals, EPIRB’s, fire extinguishers, injury placards, waste management plans and logs, marine sanitation devices, navigation rulebooks, navigation lights, sound signals, navigation day shapes, oil placard cards, garbage placards, FCC SSL, stability instructions, first aid equipment, compasses, anchor and radar reflectors, general alarm systems, bilge pumps, piping, and discharge and electronic position fixing devices which are used on the aforementioned watercraft.
(14) The gross proceeds of the sale or sales of fuel oil purchased as fuel for kiln use in manufacturing establishments.
(15) The gross proceeds of the sale or sales of tangible personal property to county and city school boards within the State of Alabama, independent school boards within the State of Alabama, all educational institutions and agencies of the State of Alabama, the counties within the state, or any incorporated municipalities of the State of Alabama, and private educational institutions operating within the State of Alabama offering conventional and traditional courses of study, such as those offered by public schools, colleges, or universities within the State of Alabama; but not including nurseries, day care centers, and home schools.
(16) The gross proceeds from the sale of all devices or facilities, and all identifiable components thereof, or materials for use therein, acquired primarily for the control, reduction, or elimination of air or water pollution and the gross proceeds from the sale of all identifiable components of, or materials used or intended for use in, structures built primarily for the control, reduction, or elimination of air and water pollution.
(17) The gross proceeds of sales of tangible personal property or the gross receipts of any business which the state is prohibited from taxing under the Constitution or laws of the United States or under the constitution of this state.
(18) When dealers or distributors use parts taken from stocks owned by them in making repairs without charge for the parts to the owner of the property repaired pursuant to warranty agreements entered into by manufacturers, such use shall not constitute taxable sales to the manufacturers, distributors, or to the dealers, under this division or under any county sales tax law.
(19) The gross proceeds received from the sale or furnishing of food, including potato chips, candy, fruit and similar items, soft drinks, tobacco products, and stationery and other similar or related articles by hospital canteens operated by Alabama state hospitals at Bryce Hospital and Partlow State School for Mental Deficients at Tuscaloosa, Alabama, and Searcy Hospital at Mt. Vernon, Alabama, for the benefit of the patients therein.
(20) The gross proceeds of the sale, or sales, of wrapping paper and other wrapping materials when used in preparing poultry or poultry products for delivery, shipment, or sale by the producer, processor, packer, or seller of such poultry or poultry products, including pallets used in shipping poultry and egg products, paper or other materials used for lining boxes or other containers in which poultry or poultry products are packed together with any other materials placed in such containers for the delivery, shipment, or sale of poultry or poultry products.
(21) The gross proceeds of the sales of all antibiotics, hormones and hormone preparations, drugs, medicines or medications, vitamins, minerals or other nutrients, and all other feed ingredients including concentrates, supplements, and other feed ingredients when such substances are used as ingredients in mixing and preparing feed for fish raised to be sold on a commercial basis, livestock, and poultry. Such exemption herein granted shall be in addition to exemptions now provided by law for feed for fish raised to be sold on a commercial basis, livestock, and poultry, but not including prepared foods for dogs or cats.
(22) The gross proceeds of the sale, or sales, of seedlings, plants, shoots, and slips which are to be used for planting vegetable gardens or truck farms and other agricultural purposes. Nothing herein shall be construed to exempt, or exclude from the computation of the tax levied, assessed, or payable, the gross proceeds of the sale, or the use of plants, seedlings, shoots, slips, nursery stock, and floral products, except as hereinabove exempted.
(23) The gross proceeds of the sale, or sales, of fabricated steel tube sections, when produced and fabricated in this state by any person, firm, or corporation for any vehicular tunnel for highway vehicular traffic, when sold by the manufacturer or fabricator thereof, and also the gross proceeds of the sale, or sales, of steel which enters into and becomes a component part of such fabricated steel tube sections of the tunnel.
(24) The gross proceeds from sales of admissions to any theatrical production, symphonic or other orchestral concert, ballet, or opera production when the concert or production is presented by any society, association, guild, or workshop group, organized within this state, whose members or some of whose members regularly and actively participate in the concerts or productions for the purposes of providing a creative outlet for the cultural and educational interests of its members, and of promoting such interests for the betterment of the community by presenting the productions to the general public for an admission charge. The employment of a paid director or conductor to assist in any such presentation described in this subdivision shall not be construed to prohibit the exemptions herein provided.
(25) The gross proceeds of sales of “herbicides” for agricultural uses by whomsoever sold. The term herbicides, as used in this subdivision, means any substance or mixture of substances intended to prevent, destroy, repel, or retard the growth of weeds or plants. The term includes preemergence herbicides, postemergence herbicides, lay-by herbicides, pasture herbicides, defoliant herbicides, and desiccant herbicides.
(26) The Alabama Chapter of the Cystic Fibrosis Research Foundation and the Jefferson Tuberculosis Sanatorium and any of their departments or agencies, heretofore or hereafter organized and existing in good faith in the State of Alabama for purposes other than for pecuniary gain and not for individual profit, shall be exempted from the computation of the tax on the gross proceeds of all sales levied, assessed, or payable.
(27) The gross proceeds from the sale or sales of fuel for use or consumption aboard commercial fishing vessels are exempt from the computation of all sales taxes levied, assessed, or payable under this division or levied under any county or municipal sales tax law.
(28) The gross proceeds from the sales of rope, fishing nets, tools, or any substitute used directly in the process of commercial fishing by a holder of a commercial license issued pursuant to Chapter 12 of Title 9.
(29) The gross proceeds of sales of sawdust, wood shavings, wood chips, and other like materials sold for use as chicken litter by poultry producers and poultry processors.
(30) The gross proceeds of the sales of all antibiotics, hormones and hormone preparations, drugs, medicines, and other medications including serums and vaccines, vitamins, minerals, or other nutrients for use in the production and growing of fish, livestock, and poultry by whomsoever sold. The exemption herein granted shall be in addition to the exemption provided by law for feed for fish, livestock, and poultry, and in addition to the exemptions provided by law for the above-enumerated substances and products when mixed and used as ingredients in fish, livestock, and poultry feed.
(31) The gross proceeds of the sale or sales of all medicines prescribed by physicians for persons who are 65 years of age or older, and when the prescriptions are filled by licensed pharmacists, shall be exempted under this division or under any county or municipal sales tax law. The exemption provided in this section shall not apply to any medicine purchased in any manner other than as is herein provided.
For the purposes of this subdivision, proof of age may be accomplished by filing with the dispensing pharmacist any one or more of the following documents:
a. The name and claim number as shown on a Medicare card issued by the United States Social Security Administration.
b. A certificate executed by any adult person having knowledge of the fact that the person for whom the medicine was prescribed is not less than 65 years of age.
c. An affidavit executed by any adult person having knowledge of the fact that the person for whom the medicine was prescribed is not less than 65 years of age.
For the purposes of this subdivision, any person filing a false proof of age shall be guilty of a misdemeanor and upon conviction thereof shall be punished by a fine of one hundred dollars ($100).
(32) There shall be exempted from the tax levied by this division the gross receipts of sales of grass sod of all kinds and character when in the original state of production or condition of preparation for sale, when the sales are made by the producer or members of the producer’s family or for the producer by those employed by the producer to assist in the production thereof; provided, that nothing herein shall be construed to exempt sales of sod by a person engaged in the business of selling plants, seedlings, nursery stock, or floral products.
(33) The gross receipts of sales of the following items or materials that are necessary in the farm-to-market production of tomatoes when such items or materials are used by the producer or members of the producer’s family or for the producer by those employed by the producer to assist in the production thereof: Twine for tying tomatoes, tomato stakes, field boxes (wooden boxes used to take tomatoes from the fields to shed), and tomato boxes used in shipments to customers.
(34) The gross proceeds from the sale of liquefied petroleum gas or natural gas sold to be used for agricultural purposes.
(35) The gross receipts of sales from state nurseries of forest tree seedlings.
(36) The gross receipts of sales of forest tree seed by the state.
(37) The gross receipts of sales of Lespedeza bicolor and other species of perennial plant seed and seedlings sold for wildlife and game food production purposes by the state.
(38) The gross receipts of any aircraft manufactured, sold, and delivered in this state if the aircraft are not permanently domiciled in Alabama and are removed to another state.
(39) The gross proceeds from the sale or sales of all diesel fuel used for off-highway agricultural purposes.
(40) The gross proceeds from sales of admissions to any sporting event that:
a. Takes place in the State of Alabama on or after January 1, 1984, regardless of when such sales occur; and
b. Is hosted by a not-for-profit corporation organized and existing under the laws of the State of Alabama; and
c. Determines a national championship of a national organization, including, but not limited to, the Professional Golfers Association of America, the Tournament Players Association, the United States Golf Association, the United States Tennis Association, and the National Collegiate Athletic Association; and
d. Has not been held in the State of Alabama on more than one prior occasion, provided, however, that for such purpose the Professional Golfers Association Championship, the United States Open Golf Championship, the United States Amateur Golf Championship of the United States Golf Association, and the United States Open Tennis Championship shall each be treated as a separate event.
(41) The gross receipts from the sale of any aircraft and replacement parts, components, systems, supplies, and sundries affixed or used on the aircraft and ground support equipment and vehicles used by or for the aircraft to or by a certificated or licensed air carrier with a hub operation within this state, for use in conducting intrastate, interstate, or foreign commerce for transporting people or property by air. For the purpose of this subdivision, the words “hub operation within this state” shall be construed to have both of the following criteria:
a. There originates from the location 15 or more flight departures and five or more different first-stop destinations five days per week for six or more months during the calendar year.
b. Passengers or property or both are regularly exchanged at the location between flights of the same or a different certificated or licensed air carrier.
(42) The gross receipts from the sale of hot or cold food and beverage products sold to or by a certificated or licensed air carrier with a hub operation within this state, for use in conducting intrastate, interstate, or foreign commerce for transporting people or property by air. For the purpose of this subdivision, the words “hub operation within this state” shall be construed to have all of the following criteria:
a. There originates from the location 15 or more flight departures and five or more different first-stop destinations five days per week for six or more months during the calendar year.
b. Passengers or property or both are regularly exchanged at the location between flights of the same or a different certificated or licensed air carrier.
(43) The gross receipts from the sale of any aviation jet fuel to a certificated or licensed air carrier purchased for use in scheduled all-cargo operations being conducted on international flights or in international commerce. For purposes of this subdivision, the following words or terms shall be defined and interpreted as follows:
a. Air Carrier. Any person, firm, corporation, or entity undertaking by any means, directly or indirectly, to provide air transportation.
b. All-Cargo Operations. Any flight conducted by an air carrier for compensation or hire other than a passenger carrying flight, except passengers as specified in 14 C.F.R. § 121.583(a) or 14 C.F.R. § 135.85, as amended.
c. International Commerce. Any air carrier engaged in all-cargo operations transporting goods for compensation or hire on international flights.
d. International Flights. Any air carrier conducting scheduled all-cargo operations between any point within the 50 states of the United States and the District of Columbia and any point outside the 50 states of the United States and the District of Columbia, including any interim stops within the United States so long as the ultimate origin or destination of the aircraft is outside the United States and the District of Columbia.
(44) The gross proceeds of the sale or sales of the following:
a. Drill pipe, casing, tubing, and other pipe used for the exploration for or production of oil, gas, sulphur, or other minerals in offshore federal waters.
b. Tangible personal property exclusively used for the exploration for or production of oil, gas, sulphur, or other minerals in offshore federal waters.
c. Fuel and supplies for use or consumption aboard boats, ships, aircraft, and towing vessels when used exclusively in transporting persons or property between a point in Alabama and a point or points in offshore federal waters for the exploration for or production of oil, gas, sulphur, or other minerals in offshore federal waters.
d. Drilling equipment that is used for the exploration for or production of oil, gas, sulphur, or other minerals, that is built for exclusive use outside this state and that is, on completion, removed forthwith from this state.
The delivery of items exempted by this subdivision to the purchaser or lessee in this state does not disqualify the purchaser or lessee from the exemption if the property is removed from the state by any means, including by the use of the purchaser’s or lessee’s own facilities.
The shipment to a place in this state of equipment exempted by this subdivision for further assembly or fabrication does not disqualify the purchaser or lessee from the exemption if on completion of the further assembly or fabrication the equipment is removed forthwith from this state. This subdivision applies to a sale that may occur when the equipment exempted is further assembled or fabricated if on completion the equipment is removed forthwith from this state.
(45) The gross receipts derived from all bingo games and operations that are conducted in compliance with validly enacted legislation authorizing the conduct of such games and operations, and which comply with the distribution requirements of the applicable local laws; provided that the exemption from sales taxation granted by this subdivision shall apply only to gross receipts taxable under subdivision (2) of Section 40-23-2. It is further provided that this exemption shall not apply to any gross receipts from the sale of tangible personal property, such as concessions, novelties, food, beverages, etc. The exemption provided for in this section shall be limited to those games and operations by organizations that have qualified for exemption under the provisions of 26 U.S.C. § 501 (c)(3), (4), (7), (8), (10), or (19), or which are defined in 26 U.S.C. § 501(d).
(46) The gross receipts derived from the sale or sales of fruit or other agricultural products by the person or company, as defined in Section 40-23-1, that planted or cultivated and harvested the fruit or agricultural product, when the land is owned or leased by the seller.
(47) The gross receipts derived from the sale or sales of all domestically mined or produced coal, coke, and coke by-products used in cogeneration plants.
(48) The gross receipts from the sale or sales of metal, other than gold or silver, when such metal is purchased for the purpose of transferring such metal to an investment trust in exchange for shares or other units, each of which are both publicly traded and represent fractional undivided beneficial interests in the trust’s net assets, including metal stored in warehouses located in this state, as well as the gross proceeds from the sale or other transfer of such metal to or from the investment trust in exchange for shares or other units that are publicly traded and represent fractional undivided beneficial interests in the trust’s net assets but not to the extent that metal is transferred to or from the investment trust in exchange for consideration other than such publicly traded shares or other units. For purposes of this subdivision, the term “metals” includes, but is not limited to, copper, aluminum, nickel, zinc, tin, lead, and other similar metals typically used in commercial and industrial applications.
(49)a. For the period commencing on October 1, 2012, and ending May 30, 2027, the gross receipts from the sale of parts, components, and systems that become a part of a fixed or rotary wing military aircraft or certified transport category aircraft that undergoes conversion, reconfiguration, or general maintenance so long as the address of the aircraft for FAA registration is not in the state; provided, however, that this exemption shall not apply to a local sales tax unless previously exempted by local law or approved by resolution of the local governing body.
b. The exemption authorized by this subdivision shall not be available for sales of parts, components, or systems for new contracts or projects entered into after May 30, 2027, unless the Legislature enacts legislation to continue or reinstate the exemption for new contracts or projects after that date. No action or inaction on the part of the Legislature shall reduce, suspend, or disqualify sales of parts, components, or systems from the exemption in any past year or future years until May 30, 2030, with respect to contracts or projects entered into on or before May 30, 2027; it being the sole intent that failure of the Legislature to enact legislation to reinstate the exemption for new contracts or projects after May 30, 2027, shall affect only the availability of the exemption to new contracts and projects after that date and shall not affect availability of the exemption for contracts or projects entered into on or before May 30, 2027, for which the exemption shall be available until May 30, 2030.
(50) The gross proceeds from the sale or sales within school buildings of lunches to pupils of kindergarten, grammar, and high schools, either public or private, that are not sold for profit.
(51) The gross proceeds of services provided by photographers, including, but not limited to, sitting fees and consultation fees, even when provided as part of a transaction ultimately involving the sale of one or more photographs, so long as the exempt services are separately stated to the customer on a bill of sale, invoice, or like memorialization of the transaction. For transactions occurring before October 1, 2017, neither the Department of Revenue nor local tax officials may seek payment for sales tax not collected. With regard to such transactions in which sales tax was collected and remitted on services provided by photographers, neither the taxpayer nor the entity remitting sales tax shall have the right to seek refund of such tax.
(52) a. For the period commencing on June 1, 2018, and ending 10 years thereafter, unless extended by an act of the Legislature, the gross proceeds of sales of bullion or money, as defined in Section 40-1-1(7).
b. For purposes of this subdivision, the following words or terms shall be defined and interpreted as follows:
1. Bullion. Gold, silver, platinum, palladium, or a combination of each precious metal, that has gone through a refining process and for which the item’s value depends on its mass and purity, and not on its form, numismatic value, or other value. The term includes bullion in the form of bars, ingots, rounds, or coins that meet the requirements set forth above. Qualifying bullion may contain other metals or substances, provided that the other substances are minimal in value compared with the value of the gold, silver, platinum, or palladium and the other substances do not add value to the item. For purposes of this subparagraph, “gold, silver, platinum, or palladium” does not include jewelry or works of art.
2. Mass. An item’s mass is its weight in precious metal.
3. Numismatic Value. An external value above and beyond the base value of the underlying precious metal, due to the item’s rarity, condition, age, or other external factor.
4. Purity. An item’s purity is the proportion of precious metal contained within.
c. In order for bullion to qualify for the sales tax exemption, gold, silver, platinum, and palladium items must meet all of the following requirements:
1. Must be refined.
2. Must contain at least 80 percent gold, silver, platinum, or palladium or some combination of these metals.
3. The sales price of the item must fluctuate with and depend on the market price of the underlying precious metal, and not on the item’s rarity, condition, age, or other external factor.
(53) a. The gross proceeds of the initial retail sales of adaptive equipment that is permanently affixed to a motor vehicle.
b. For the purposes of this subdivision, the following words or terms shall be defined and interpreted as follows:
1. Adaptive Equipment. Equipment not generally used by persons with normal mobility that is appropriate for use in a motor vehicle and that is not normally provided by a motor vehicle manufacturer.
2. Motor Vehicle. A vehicle as defined in Section 40-12-240.
3. Motor Vehicle Manufacturer. Every person engaged in the business of constructing or assembling vehicles or manufactured homes.
c. In order to qualify for the exemption provided for herein, the adaptive equipment must be separately stated to the customer on a bill of sale, invoice, or like memorialization of the transaction.
(54) For the period commencing on October 1, 2022, and ending September 30, 2027, unless extended by an act of the Legislature, the gross receipts derived from the sale of producer value added agricultural products when the sale is made by the producer or by the producer’s immediate family, or for the producer by the producer’s employees.
(55) For the period commencing on October 1, 2024, and ending September 30, 2029, unless extended by an act of the Legislature, the gross proceeds of the sale or sales of hearing instruments as defined in Section 34-14-1, including hearing aids. The exemption provided in this subdivision shall not apply to county or municipal sales taxes unless approved by resolution or ordinance adopted by the local governing body.
(b) Any violation of any provision of this section shall be punishable in a court of competent jurisdiction by a fine of not less than five hundred dollars ($500) and no more than two thousand dollars ($2,000) and imprisonment of not less than six months nor more than one year in the county jail.
","history":"(Acts 1959, 2nd Ex. Sess., No. 100, p. 298, §§3, 33; Acts 1959, No. 367, p. 958; Acts 1959, No. 371, p. 962; Acts 1961, No. 743, p. 1060; Acts 1961, No. 812, p. 1188; Acts 1963, No. 423, p. 930; Acts 1963, No. 425, p. 943; Acts 1963, No. 571, p. 1193; Acts 1965, 1st Ex. Sess., No. 227, p. 307; Acts 1965, 1st Ex. Sess., No. 245, p. 361; Acts 1965, No. 375, p. 511; Acts 1965, 2nd Ex. Sess., No. 54, p. 80, §§1, 2; Acts 1965, 2nd Ex. Sess., No. 57, p. 83; Acts 1965, 2nd Ex. Sess., No. 123, p. 171; Acts 1966, Ex. Sess., No. 419, p. 564; Acts 1969, No. 1139, p. 2128; Acts 1970, Ex. Sess., No. 16, p. 2616; Acts 1970, Ex. Sess., No. 18, p. 2617; Acts 1971, 3rd Ex. Sess., No. 176, p. 4435, §§1-3; Acts 1973, No. 1169, p. 1966; Acts 1975, No. 1123, p. 2212, §1; Acts 1976, No. 500, p. 627; Acts 1976, No. 505, p. 632; Acts 1977, No. 593, p. 1359; Acts 1980, No. 80-625, p. 1071; Acts 1980, No. 80-626, p. 1077; Acts 1981, No. 81-596, p. 987, §1; Acts 1981, No. 81-677, p. 1102, §1; Acts 1983, No. 83-576, p. 895, §1; Acts 1984, No. 84-315, p. 727; Acts 1985, No. 85-574, p. 880, §1; Acts 1986, No. 86-214, p. 282, §8; Acts 1987, No. 87-742, p. 1439, §1; Acts 1990, No. 90-671, p. 1291; Acts 1991, No. 91-546, p. 988, §1; Acts 1992, No. 92-343, p. 720, §3; Acts 1993, No. 93-305, p. 720, §1; Acts 1994, No. 94-720, p. 1409, §1; Acts 1996, No. 96-544, p. 762, §1; Act 2001-975, 3rd Sp. Sess., p. 908, §6; Act 2009-144, p. 268, §12; Act 2010-514, p. 848, §1; Act 2012-185, p. 298, §1; Act 2012-395, p. 1056, §1; Act 2013-200, p. 391, §1; Act 2014-325, p. 1189, §1; Act 2017-397, §1; Act 2018-562, §1; Act 2018-164, §1; Act 2019-444, §1; Act 2022-291, §2; Act 2022-293, §1; Act 2022-373, §1; Act 2022-199, §1; Act 2024-400, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38841,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37995,"codeId":18381,"versionId":14621,"parentId":18334,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-4.1","shortTitle":"Section 40-23-4.1","catchLine":"Certain Drugs Exempt.","title":"Section 40-23-4.1 Certain Drugs Exempt.","sectionRange":null,"content":"(a) The term “drugs” shall include any medicine prescribed by physicians when the prescription is filled by a licensed pharmacist, or sold to the patient by the physician, for human consumption or intake.
(b) In addition to any and all items exempt from gross sales tax, certain drugs, as defined in subsection (a) of this section, shall be exempt from state gross sales taxes as defined in Section 40-23-2.
","history":"(Acts 1981, No. 81-663, p. 1084.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38843,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37996,"codeId":18389,"versionId":14629,"parentId":18334,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-4.2","shortTitle":"Section 40-23-4.2","catchLine":"Food Stamp Purchases Exempt.","title":"Section 40-23-4.2 Food Stamp Purchases Exempt.","sectionRange":null,"content":"(a) As used in this section the following terms shall have the following meanings:
(1) FOOD STAMPS. The stamps provided by the United States Department of Agriculture for issuance to qualified recipients under the federal Food Stamp Act, 7 U.S.C. §2011 et seq.
(2) FOOD STAMP SALES TAX AMENDMENT. Section 1505 of the Food Security Act of 1985 (Public Law 99-198) which amended 7 U.S.C. §2013(a) and provides that a state may not participate in the food stamp program if state or local taxes are collected on purchases of food made with food stamps.
(b) It is hereby declared by the Legislature that this exemption is enacted in response to the coercive threat of Congress contained in the Food Stamp Sales Tax Amendment in order to insure that all eligible citizens within the State of Alabama will continue to receive food stamp benefits; that the State of Alabama has challenged the constitutionality of the Food Stamp Sales Tax Amendment and the case is currently pending in the federal courts; and that it is intended that this exemption shall remain in effect only so long as federal law requires such exemption in order for Alabama citizens to be entitled to receive food stamp benefits.
(c) All purchases made with food stamps shall be exempt from state, county and municipal sales and use taxes.
(d) If, at any time after the passage of this section, the Food Stamp Sales Tax Amendment is either ruled unconstitutional or unenforceable by a federal court, or is repealed by Congress, then the provisions of this section shall immediately become inoperative, null and void and automatically repealed.
","history":"(Acts 1987, No. 87-580, p. 927, §§1-4.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38844,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37997,"codeId":18397,"versionId":14638,"parentId":18334,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-4.3","shortTitle":"Section 40-23-4.3","catchLine":"Exemption Form for Certain Agricultural Purposes.","title":"Section 40-23-4.3 Exemption Form for Certain Agricultural Purposes.","sectionRange":null,"content":"In connection with the purchases of tangible personal property described in subdivisions (2), (4), and (22) of subsection (a) of Section 40-23-4, and therefore exempt from taxation as therein provided, the filing by the purchaser at retail of such property with the seller of a certificate in substantially the following form shall relieve the seller of any obligation to collect tax under Chapter 23 of this title with respect to the sales described therein:
The seller shall furnish a copy of said certificate, with receipt attached, to the purchaser and must retain the original thereof for examination by the Department of Revenue for a period of not less than one year from the date thereof.
","history":"(Acts 1992, No. 92-343, p. 720, §4.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38845,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37998,"codeId":40943,"versionId":33112,"parentId":18334,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-4.4","shortTitle":"Section 40-23-4.4","catchLine":"Exemption Form for Equipment for Certain Commercial Fishing Vessels.","title":"Section 40-23-4.4 Exemption Form for Equipment for Certain Commercial Fishing Vessels.","sectionRange":null,"content":"In connection with the purchase of material, equipment, or machinery for commercial fishing vessels described in subdivision (13) of subsection (a) of Section 40-23-4, and therefore exempt from taxation under that section, the filing by the purchaser at retail of the material, equipment, or machinery with the seller of a certificate in substantially the following form shall relieve the seller of any obligation to collect tax under Chapter 23 of this title with respect to the sales described in that chapter:
Exemption certification respecting material, equipment, or machinery which, at any time, enters into and becomes a component part of commercial fishing vessels of over five tons load displacement as registered with the U.S. Coast Guard and licensed by the State of Alabama Department of Conservation and Natural Resources.
The undersigned __________________________, (name) (address) hereby certifies that the items of tangible personal property purchased by the undersigned on this date from _________________ (name of retailer) (itemized receipt attached) will be used for the purposes described in subdivision (13) of Section 40-23-4, Code of Alabama 1975, for commercial fishing vessels in a manner that shall render the aforesaid purchase exempt from sales or use taxation under the laws of Alabama. The undersigned is aware that liability to pay any tax ultimately determined to be applicable with respect to the items so purchased will be the exclusive responsibility of the undersigned.
_____________ _________________
(Signature) (Date)
The seller shall furnish a copy of the certificate, with receipt attached, to the purchaser, and retain the original certificate for examination by the Department of Revenue for a period of not less than one year from the date of the certificate.
","history":"(Act 2010-511, p. 844, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38846,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":37999,"codeId":58116,"versionId":50066,"parentId":18334,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-4.5","shortTitle":"Section 40-23-4.5","catchLine":"Products Processed or Produced Under Chapter 2A of Title 20 Excluded from the Producer Value Added Sales and Use Tax Exemption.","title":"Section 40-23-4.5 Products Processed or Produced Under Chapter 2A of Title 20 Excluded from the Producer Value Added Sales and Use Tax Exemption.","sectionRange":null,"content":"The producer value added agricultural product exemption provided in Section 40-23-1 and 40-23-4, shall not apply to products processed or produced under Chapter 2A of Title 20.","history":"(Act 2023-541, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38847,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38000,"codeId":59059,"versionId":51429,"parentId":18334,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-4.6","shortTitle":"Section 40-23-4.6","catchLine":"Exemption for Agricultural Fencing Materials.","title":"Section 40-23-4.6 Exemption for Agricultural Fencing Materials.","sectionRange":null,"content":"(a) For a period commencing October 1, 2024, and ending September 30, 2029, up to twenty-five thousand dollars ($25,000) of the gross proceeds from the sale of fencing materials such as t-posts, wood posts, barbed wire, net wire, smooth wire, standard metal gates, and other like materials used for the purpose of fencing in agriculture livestock applications are exempt from the sales and use tax as provided for in Section 40-23-2 and 40-23-61. The exemption provided in this subsection shall not apply to county or municipal sales and use taxes unless approved by resolution or ordinance adopted by the local governing body.
(b) To qualify for the exemption, a retail purchaser shall provide to a seller an affidavit confirming the purchased material is strictly for an agriculture livestock application. The affidavit shall relieve the seller of the obligation to collect the tax under Chapter 23 of Title 40, with respect to the sale of such materials. The Department of Revenue shall make the affidavit available to sellers.
","history":"(Act 2024-169, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38848,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38001,"codeId":60247,"versionId":52326,"parentId":18334,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-4.7","shortTitle":"Section 40-23-4.7","catchLine":"Exemption for Honeybees, Honeybee Inputs, and Honeybee Byproducts.","title":"Section 40-23-4.7 Exemption for Honeybees, Honeybee Inputs, and Honeybee Byproducts.","sectionRange":null,"content":"(a) For the period commencing October 1, 2024, and ending September 30, 2029, unless extended by an act of the Legislature, the gross proceeds from the sale of honeybees, including honeybee inputs and honeybee byproducts, are exempt from the state sales and use tax as provided for in Section 40-23-2.
(b) For purposes of this section, the term “honeybee byproducts” means the various substances and materials produced by honeybees during their life cycle and hive activities, including, but not limited to, propolis, royal jelly, beeswax, honeycombs, bee venom, and honeybee pollen. For the purposes of this section, the term “honeybee byproducts” does not include honey.
(c) The exemption provided in this section shall not apply to county or municipal sales or use taxes unless approved by resolution or ordinance adopted by the local governing body.
","history":"(Act 2024-448, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38849,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38002,"codeId":18405,"versionId":49567,"parentId":18334,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-5","shortTitle":"Section 40-23-5","catchLine":"Certain Organizations and Vendors Exempt from Payment of State, County, and Municipal Sales and Use Taxes.","title":"Section 40-23-5 Certain Organizations and Vendors Exempt from Payment of State, County, and Municipal Sales and Use Taxes.","sectionRange":null,"content":"(a) The Diabetes Trust Fund, Inc., and any of its branches or agencies, heretofore or hereafter organized and existing in good faith in the State of Alabama for purposes other than for pecuniary gain and not for individual profit, are exempted from paying any state, county, or municipal sales or use taxes.
(b) The Chilton County Rescue Squad is exempted from paying any sales or use taxes.
(c) The state headquarters only of the American Legion, the American Veterans of World War II, Korea, and Vietnam, also known as AMVETS, the Disabled American Veterans, the Veterans of Foreign Wars, also known as VFW, Alabama Goodwill Industries, and the Alabama Sight Conservation Association are exempted from paying any state, county, or municipal sales or use taxes.
(d) The Grand Chapter of all Orders of the Eastern Star and the South Alabama State Fair Association Southeastern Livestock Exposition of the State of Alabama and any of its agencies, heretofore or hereafter organized and existing in good faith in the State of Alabama for purposes other than for pecuniary gain and not for individual profit, are exempted from paying any state, county, or municipal sales and use taxes.
(e) The Alabama Goodwill Industries, Inc., of Birmingham is exempted from paying any state, municipal, or county sales and use taxes.
(f) The Alabama Federation of Women’s Clubs is exempted from paying any state, county, or municipal sales or use taxes.
(g) The National Conference of State Legislatures and the Council of State Governments are exempted from paying any state, county, or municipal sales or use taxes.
(h) All blind vendors associated with the Business Enterprise Program of the Department of Rehabilitation Services are exempted from paying any state, county, or municipal sales or use taxes.
(i) All vendors who are blind as defined by Section 1-1-3, and who are certified by the Department of Rehabilitation Services, are exempted from paying any state, county, or municipal sales or use taxes.
(j) The Elks Club, B.P.O.E., No. 1887, a corporation, is exempted from paying any state, county, or municipal sales or use taxes. Provided, however, that the exemption provided by this subsection shall not extend to any bar or dining room operation conducted by the Elks Club.
(k) The King’s Ranch, Inc., is exempted from paying any state, county, or municipal sales or use taxes.
(l) The Eye Foundation, Inc., and any of its branches or agencies, heretofore, or hereafter organized and existing in good faith in the State of Alabama for purposes other than for pecuniary gain and not for individual profit, are exempted from paying any state, county, or municipal sales or use taxes.
(m) Any county public hospital association or any Alabama nonprofit membership corporation if one or more of its members is a county public hospital association, and any of its, or their, branches, agencies, lessees, or successors organized pursuant to Section 10-3A-1 et seq., and which operates or maintains hospitals for purposes other than for pecuniary gain and not for individual profit, is exempted from paying any state, county, or municipal sales and use tax of any nature whatsoever. Any of the taxes which were or may be assessed or collected subsequent to December 31, 1993, against any Alabama nonprofit membership corporation or any lessee of any county public hospital association organized as herein stated, pursuant to a lease in writing, will be remitted to the entity which paid them; and no action or proceeding against the association or nonprofit corporation may be instituted after the date by the State of Alabama or any county or municipality thereof or any agent or person acting on behalf thereof for the collection or enforcement of any sales or use tax of any nature whatsoever.
(n) There is exempted from all state, county, and municipal sales taxes the sale of food pursuant to the food distribution program conducted by Christian Service Mission, Inc., an Alabama not-for-profit corporation, in cooperation with World Share, Inc., to enable needy persons to purchase food at substantially discounted prices and in consideration of the performance of charitable or community work by such persons.
(o) Rescue service organizations operating within the State of Alabama which are exempt from federal income taxes under the Internal Revenue Code of 1986, § 501(c)(3) and which are members of the Alabama Rescue Services Association, Incorporated, are exempted from any state, county, and municipal sales and use taxes.
(p) Alabama Goodwill Industries, Inc., Goodwill Industries of Mobile Area, Inc., and Goodwill Industries of Central Alabama, Inc., are exempted from paying any state, county, and municipal sales or use taxes.
(q) The gross receipts from the sale of admissions to a sporting event conducted by the Senior Professional Golfers Association are exempted from any state, county, and municipal sales taxes.
(r) Volunteer, non-profit rescue units operating within the state which do not meet the criteria in subsection (o) but are licensed by the State Board of Health are exempt from any state, county, and municipal sales and use taxes.
(s)(1) The Birmingham Zoo, Inc., is exempt from paying any state, county, and municipal sales and use taxes associated with any and all capital expenditures but shall continue to collect and remit all other taxes to the appropriate taxing authorities.
(2) The exemption provided pursuant to subdivision (1) shall be available until September 30, 2027.
(3) The Birmingham Zoo, Inc., shall report annually to the Department of Revenue on the sales for which the exemption is granted. The Department of Revenue shall prescribe the format of such annual report.
(t)(1) The Zoo Foundation, Inc., operating as the Alabama Gulf Coast Zoo, or any successor entity, is exempt from paying any state, county, and municipal sales and use taxes associated with any and all capital expenditures; provided, however, that any exemption of county sales and use taxes must first be authorized by resolution of the county commission. The Zoo Foundation, Inc., shall continue to collect and remit all other taxes to the appropriate taxing authorities.
(2) The exemption provided pursuant to subdivision (1) shall be available until September 30, 2022.
(3) The Zoo Foundation, Inc., shall report annually to the Department of Revenue on the sales for which the exemption is granted. The Department of Revenue shall prescribe the format of the annual report.
(u) The Josh Willingham Foundation is exempted from paying any state, county, and municipal sales and use taxes.
(v) The Alabama Wildlife Center is exempt from paying any state, county, and municipal sales and use taxes until September 30, 2024.
","history":"(Acts 1975, 3rd Ex. Sess., No. 154, p. 400; Acts 1975, 4th Ex. Sess., No. 149, p. 2892; Acts 1978, No. 670, p. 966; Acts 1978, 2nd Ex. Sess., No. 77, p. 1766; Acts 1981, No. 81-790, p. 1388, §1; Acts 1981, No. 81-812, p. 1452; Acts 1984, No. 84-406, p. 954; Acts 1985, No. 85-574, §1; Acts 1985, 2nd Ex. Sess., No. 915; Acts 1985, 2nd Ex. Sess., No. 85-1000, p. 378; Acts 1987, No. 87-549, p. 842; Acts 1988, No. 88-543, p. 842; Acts 1989, No. 89-749, p. 1516; Acts 1989, No. 89-829, p. 1660; Acts 1991, No. 91-324, p. 643, §1; Acts 1993, No. 93-484, p. 777, §1; Acts 1993, No. 93-757, p. 1511, §1; Acts 1994, No. 94-596, p. 1103, §1; Acts 1995, No. 95-692, p. 1507, §1; Act 2015-384, p. 1170, §§1-3; Act 2018-568, §1; Act 2019-488, §1; Act 2023-309, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38853,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38003,"codeId":18408,"versionId":47689,"parentId":18334,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-6","shortTitle":"Section 40-23-6","catchLine":"License Required to Engage in Business; One-Time Surety Bond.","title":"Section 40-23-6 License Required to Engage in Business; One-Time Surety Bond.","sectionRange":null,"content":"(a) If any person shall engage in or continue in any business for which a privilege tax is imposed by Section 40-23-2 as a condition precedent to engaging or continuing in such business, the person shall apply for and obtain from the Department of Revenue a license to engage in and to conduct such business for the current tax year upon the condition that the person shall pay the taxes accruing to the State of Alabama under this division; provided, that no license shall be issued under this division to any person who has not complied with this division, and this division shall not be construed as relieving any person from the payment of any license or privilege tax now or hereafter imposed by law.
(b)(1) Any person applying for an initial license or the renewal of an expired or cancelled license on or after January 1, 2020, who is in the business of selling at retail products that may be purchased from a seller, as defined in Section 40-23-260, shall be required to purchase and maintain a one-time surety bond for a two-year period, executed by the applicant as principal and by a corporate surety company qualified to do business in this state as surety, in the amount of twenty-five thousand dollars ($25,000). The bond shall be in a form to be approved by the commissioner and shall be conditioned upon the licensee collecting and remitting sales tax pursuant to this chapter and any rules adopted thereunder. The bond shall be payable to the commissioner and to his or her successors in office.
(2) Any person required to purchase and maintain a one-time surety bond as provided for in subdivision (1), in lieu of purchasing the surety bond, may deposit with the department certified funds equivalent to the amount of the surety bond.
(3) The department shall provide a waiver for the surety bond as required pursuant to subdivision (1) where the person applying for an initial license or the renewal of an expired or cancelled license and a current licensee are related parties as defined in Section 40-23-190(c), or members of a controlled group of corporations as defined in 26 U.S.C. § 1563, or with respect to any other business, whether or not incorporated, which would be members of a controlled group if similar rules applied to the business, and the related party’s current licensee has been compliant over the previous two-year period.
(c)(1) Any licensee who becomes non-compliant in the collection and remittance of sales tax during any period occurring on or after January 1, 2020, shall be required to purchase and maintain a one-time surety bond for a two-year period in the amount of the actual sales tax liability for the three months immediately preceding the non-compliant period; provided, however, the surety bond shall not be less than the amount as prescribed in subdivision (b)(1). For the purpose of this section, a licensee shall be deemed non-compliant when a final assessment that has been entered against the licensee is no longer subject to appeal and the licensee has not paid or otherwise satisfied the liability associated with the final assessment within 30 days from the date on which the final assessment was no longer subject to appeal. The surety bond shall be in a form to be approved by the commissioner and shall be conditioned upon the licensee collecting and remitting sales tax pursuant to this chapter and any rules adopted thereunder. The bond shall be payable to the commissioner and to his or her successors in office.
(2) Any licensee required to purchase and maintain a one-time surety bond as provided for in subdivision (1), in lieu of purchasing the surety bond, may deposit with the department certified funds equivalent to the amount of the surety bond.
(3) The department shall notify a licensee at his or her last known address by first class U.S. mail or by certified mail, return receipt requested, when a bond is being required pursuant to subdivision (1). The licensee, within 30 days from the date the notice is mailed by the department, shall file the bond or make a deposit of certified funds as requested by the department or file a notice of appeal with the Alabama Tax Tribunal as allowed under Section 40-2A-8(a). The department may immediately cancel a license upon the expiration of the 30-day period set out above if the licensee fails to either provide the required surety bond, make a deposit of certified funds, or timely appeal to the Alabama Tax Tribunal. Furthermore, a cancelled license shall not be renewed until the licensee provides the required surety bond or deposit of certified funds.
(d) After two years of continuous compliance, a licensee shall be exempt from the surety bond requirement so long as the licensee collects and timely remits sales tax pursuant to this chapter and any rules adopted thereunder.
","history":"(Acts 1959, 2nd Ex. Sess., No. 100, p. 298, §4; Act 2018-508, §1; Act 2022-53, §5.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38854,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38004,"codeId":51351,"versionId":47690,"parentId":18334,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-6.1","shortTitle":"Section 40-23-6.1","catchLine":"Reasonable Cause for Suspension, Revocation, Etc., of License.","title":"Section 40-23-6.1 Reasonable Cause for Suspension, Revocation, Etc., of License.","sectionRange":null,"content":"(a) The commissioner, subject to the appeal provisions allowed in Chapter 2A, may suspend or revoke a license, or deny a license application or renewal, issued under Section 40-12-221, 40-23-6, or 40-23-66 for reasonable cause including the following:
(1) Fraud practiced or any material misstatement in the license application.
(2) Changes of conditions in ownership or business structure after a license is granted or the failure to engage in or continue to engage in business for which the license is issued.
(3) Failure to comply with Chapter 12 and this chapter, or any rule adopted thereunder.
(4) Failure to provide or maintain a surety bond or in lieu of purchasing the surety bond, deposit with the department certified funds equivalent to the amount of the surety bond, as required in Section 40-23-6.
(b) The Department of Revenue may adopt rules to administer this section.
","history":"(Act 2019-253, §2; Act 2022-53, §5.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38855,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38005,"codeId":18414,"versionId":49738,"parentId":18334,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-7","shortTitle":"Section 40-23-7","catchLine":"Taxes Due Monthly; Filing of Reports; Estimated Payments Authorized; Election to File Quarterly, Semi-Annually, or Annually; Extension of Time for Making Return.","title":"Section 40-23-7 Taxes Due Monthly; Filing of Reports; Estimated Payments Authorized; Election to File Quarterly, Semi-Annually, or Annually; Extension of Time for Making Return.","sectionRange":null,"content":"(a) The taxes levied under this division, except as otherwise provided in subsection (d), shall be due and payable in monthly installments on or before the 20th day of the month next succeeding the month in which the tax accrues.
(b) Except as otherwise provided in subsection (d), on or before the 20th day of each month, every person on whom the taxes levied by this division are imposed shall report to the department, on a form prescribed by the department, a true and correct statement showing such information as the department may require, and shall pay to the department the amount of taxes shown to be due.
(c) Any taxpayer liable for taxes under this division whose average monthly state sales tax liability was twenty thousand dollars ($20,000) or greater during the preceding calendar year shall make estimated payments to the department on or before the 20th day of the month in which the liability occurs as follows:
(1) The amount of the first estimated payment shall be 66 2/3 percent of the taxpayer’s actual tax liability for the month of October 1983; thereafter the amounts of the payment shall be the lesser of 66 2/3 percent of the taxpayer’s actual tax liability for the same calendar month of the preceding year or 66 2/3 percent of the current month’s estimated liability.
(2) Any outstanding credit or deficit arising from the taxpayer’s overpayment or underpayment of his or her final liability shall be applied to either increase or reduce that month’s final tax liability which shall be reported and paid not later than the 20th day of the month next succeeding the month in which the tax accrues.
(3) This subsection shall not apply to Sections 11-51-180, 11-51-200, 40-12-4, nor to any municipal or county taxes levied by past or future special or local acts of the Legislature.
(d) Taxpayers meeting the criteria set forth in this subsection may elect to file quarterly, semi-annually, or annually. Any election to file quarterly, semi-annually, or annually shall be made in writing no later than February 20 of each year and shall be filed with the department in the manner prescribed by the department. Qualifying taxpayers electing to file quarterly, semi-annually, or annually, shall report to the department, on a form prescribed by the department, a true and correct statement showing such information as the department may require. Qualifying taxpayers shall pay to the department the amount of tax shown to be due on or before the applicable deadlines, under any rules as may be prescribed, as follows:
(1) When the total state sales tax for which any person is liable under this division is less than two thousand four hundred dollars ($2,400) during the preceding calendar year, the person may elect to file quarterly returns. Quarterly returns and payments of the amount of tax shown to be due shall be due on or before the 20th day of the month next succeeding the end of the quarter for which the tax is due.
(2) When the total state sales tax for which any person is liable under this division is less than one thousand two hundred dollars ($1,200) during the preceding calendar year, or the person liable for the tax has made retail sales in this state during no more than two, 30 consecutive day periods during the preceding calendar year, the person may file semi-annual returns. The semi-annual returns and payment of the amount of the tax shown to be due shall be due on or before July 20 and January 20 following the end of the six-month period for which the tax is due.
(3) When the total state sales tax for which any person is liable under this division during the preceding calendar year is less than six hundred dollars ($600), or the person liable for the tax has made retail sales in this state during no more than one, 30 consecutive day period during the preceding calendar year, the person may elect to file an annual return. The annual return and payment of the tax shown to be due shall be due on or before January 20 following the end of the annual period for which the tax is due.
(e) The department, for good cause, may extend the time for making any state or state-administered return required under this division, but the time for filing any such return shall not be extended for a period greater than 30 days from the date such return is due to be made.
","history":"(Acts 1959, 2nd Ex. Sess., No. 100, p. 298, §5; Acts 1984, No. 84-248, p. 391; Act 98-192, p. 310, §9; Act 2014-316, p. 1120, §2; Act 2019-253, §1; Act 2022-53, §5; Act 2023-422, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38856,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38006,"codeId":18423,"versionId":14654,"parentId":18334,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-8","shortTitle":"Section 40-23-8","catchLine":"Cash Sales and Credit Collections to Be Reported.","title":"Section 40-23-8 Cash Sales and Credit Collections to Be Reported.","sectionRange":null,"content":"Any person taxable under this division, having cash and credit sales, may report such cash sales, and the taxpayer shall thereafter include in each monthly report all credit collections made during the month preceding, and shall pay the taxes due thereon at the time of filing such report, but in no event shall the gross proceeds of credit sales be included in the measure of the tax to be paid until collections of such credit sales shall have been made.
","history":"(Acts 1959, 2nd Ex. Sess., No. 100, p. 298, §6.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38857,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38007,"codeId":18429,"versionId":14659,"parentId":18334,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-9","shortTitle":"Section 40-23-9","catchLine":"Records to Be Kept.","title":"Section 40-23-9 Records to Be Kept.","sectionRange":null,"content":"It shall be the duty of every person engaging or continuing in this state in any business for which a privilege tax is imposed by this division, to keep and preserve suitable records of the gross sales, gross proceeds of sales, and gross receipts or gross receipts of sales of such business and such other books or accounts as may be necessary to determine the amount of tax for which he is liable, under the provisions of this division. It shall be the duty of every person to keep and preserve all invoices of goods, wares, and merchandise purchased, for resale or otherwise, and all such books, invoices, and other records shall be open for examination by the Department of Revenue or its duly authorized agent. Any person selling both at wholesale and retail shall keep his books so as to show separately the gross proceeds of wholesale sales and the gross proceeds of retail sales. All sales shall be subject to tax in the absence of such separate records.
","history":"(Acts 1959, 2nd Ex. Sess., No. 100, p. 298, §7; Acts 1992, No. 92-186, p. 349, §65.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38858,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38008,"codeId":18435,"versionId":14664,"parentId":18334,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-10","shortTitle":"Section 40-23-10","catchLine":"Reports Under Oath.","title":"Section 40-23-10 Reports Under Oath.","sectionRange":null,"content":"The monthly reports herein required to be made are not required to be made on oath, but wherever in this division any report is required to be sworn to, the same shall be sworn to by the taxpayer or his agent before some officer authorized to administer oaths, and any false statement to a material fact made with intent to defraud shall constitute perjury, and upon conviction thereof, the person so convicted shall be punished as provided by law.
","history":"(Acts 1959, 2nd Ex. Sess., No. 100, p. 298, §8.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38859,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38009,"codeId":18441,"versionId":14668,"parentId":18334,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-11","shortTitle":"Section 40-23-11","catchLine":"Penalty for Failure to Make Reports or Keep Records.","title":"Section 40-23-11 Penalty for Failure to Make Reports or Keep Records.","sectionRange":null,"content":"Any person subject to the provisions of this division who shall fail to make the reports or any of them, as herein required, or who shall fail to keep the records as herein required, shall be guilty of a misdemeanor, and upon conviction shall be fined not less than $25 nor more than $500 for each offense. Each month of such failure shall constitute a separate offense.
","history":"(Acts 1959, 2nd Ex. Sess., No. 100, p. 298, §9.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38860,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38010,"codeId":18447,"versionId":14673,"parentId":18334,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-12","shortTitle":"Section 40-23-12","catchLine":"Penalty for Willful Refusal to Make Reports or Permit Examination of Records.","title":"Section 40-23-12 Penalty for Willful Refusal to Make Reports or Permit Examination of Records.","sectionRange":null,"content":"Any person subject to the provisions of this division willfully refusing to make the reports herein required, or who shall refuse to permit the examination of his records by the Department of Revenue, or its duly authorized agents, shall be guilty of a misdemeanor, and upon conviction shall be fined not less than $50 nor more than $500 for each offense, and in addition may be imprisoned in the county jail for a period not to exceed six months. Each month of failure to make such reports shall constitute a separate offense, and each refusal of a written demand of the department to examine, inspect or audit such records shall constitute a separate offense.
","history":"(Acts 1959, 2nd Ex. Sess., No. 100, p. 298, §10.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38861,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38011,"codeId":18454,"versionId":14678,"parentId":18334,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-24","shortTitle":"Section 40-23-24","catchLine":"Itinerant Vendors to File Bond.","title":"Section 40-23-24 Itinerant Vendors to File Bond.","sectionRange":null,"content":"For the purpose of securing the payment of any tax, penalties or interest due or which may become due under the provisions of this division, every itinerant vendor engaged in the business of selling tangible personal property at retail in this state is required to file a bond with the Department of Revenue, conditioned upon the payment of any tax, penalty or interest due or to become due under this division and upon faithful observance of the provisions of the division. Such bond shall be effective for a period of one year from date of issuance and shall be fixed by the department in an amount equal to the tax estimated due or to become due under the provisions of this division, but not less than $100 nor more than $1,000, and shall have a surety or sureties satisfactory to the department. It shall be filed with the department within 10 days after notice in writing has been issued by the commissioner or any person designated by him in writing for this purpose, and sent by registered or certified mail to the last known address of any itinerant vendor or has been personally served upon him by a duly accredited representative of the department. If such itinerant vendor fails to make any return due under this division or to pay any taxes or penalties due under this division or to keep books and records as required by this division or fails to perform any other duty or obligation imposed on him under this division, such bond shall thereupon be forfeited, and the department shall institute an action upon such bond in the name of the State of Alabama for the entire amount of said bond and costs.
","history":"(Acts 1959, 2nd Ex. Sess., No. 100, p. 298, §22.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38862,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38012,"codeId":18459,"versionId":14683,"parentId":18334,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-25","shortTitle":"Section 40-23-25","catchLine":"Person Selling Out or Quitting Business to File Return; Part of Purchase Money to Be Withheld.","title":"Section 40-23-25 Person Selling Out or Quitting Business to File Return; Part of Purchase Money to Be Withheld.","sectionRange":null,"content":"Any person subject to the provisions hereof who shall sell out his business or stock of goods, or shall quit business, shall be required to make out the return provided for under Section 40-23-7 within 30 days after the date he sold out his business or stock of goods, or quit business, and his successor in business shall be required to withhold sufficient of the purchase money to cover the amount of said taxes due and unpaid until such time as the former owner shall produce a receipt from the Department of Revenue showing that the taxes have been paid, or a certificate that no taxes are due. If the purchaser of a business or stock of goods shall fail to withhold purchase money as above provided the taxes shall be due and unpaid after the 30-day period allowed, he shall be personally liable for the payment of the taxes accrued and unpaid on account of the operation of the business by the former owner. If in such cases the department deems it necessary in order to collect the taxes due the state, it may make a jeopardy assessment as provided in Chapter 29 of this title.
","history":"(Acts 1959, 2nd Ex. Sess., No. 100, p. 298, §23; Acts 1992, No. 92-186, p. 349, §66.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38863,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38013,"codeId":18466,"versionId":14689,"parentId":18334,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-26","shortTitle":"Section 40-23-26","catchLine":"Tax to Be Added to Purchase Price; Refund Unlawful; Tax a Direct Tax on Retail Consumer.","title":"Section 40-23-26 Tax to Be Added to Purchase Price; Refund Unlawful; Tax a Direct Tax on Retail Consumer.","sectionRange":null,"content":"(a) Every person, firm, corporation, association or copartnership engaged in or continuing within this state in the business for which a license or privilege tax is required by this division shall add to the sales price and collect from the purchaser on all sales upon the gross receipts or gross proceeds of which there is levied by this division a sales tax at the rate of four percent, $.04 tax for each whole dollar of sales price; provided, that on that part of the sales price which is a fractional part of a dollar, in addition to whole dollars, and on sales of less than a dollar there shall be collected in addition to the tax collected on whole dollars, no tax on $.01 to and including $.10 of sales price, $.01 tax on $.11 to and including $.30 of sales price, $.02 tax on $.31 to and including $.54 of sales price, $.03 tax on $.55 to and including $.73 of sales price, and $.04 tax on $.74 to and including $.99 of sales price. Upon sales the gross receipts or gross proceeds of which are taxed by this division at a rate less than four percent, there shall be added to the sales price and collected from the purchaser by such person, firm, corporation, association or copartnership described in this section an amount equal to the prescribed percentage of such sales price.
(b) It shall be unlawful for any person, firm, corporation, association or copartnership described in this section to fail or refuse to add to the sales price and collect from the purchaser the amount required by this section to be so added to the sales price and collected from the purchaser; and it shall likewise be unlawful to refund or offer to refund all or any part of the amount collected, or to absorb or advertise directly or indirectly the absorption or refund of the amount required to be added to the sales price and collected from the purchaser, or any portion of such amount. Any person, firm, corporation, association or copartnership violating any of the provisions of this section shall be guilty of a misdemeanor, and upon conviction shall be fined in a sum of not less than $50 nor more than $100, or may be imprisoned in the county jail for not more than six months, or may be punished by both such fine and imprisonment, and each act in violation of the provisions of this division shall constitute a separate offense. The provisions of this section that there shall be added to the sale price and collected from the purchaser the amounts provided herein shall in no way relieve the person, firm, corporation, association or copartnership described in this section of the tax levied by this article; nor shall the inability, impracticability, refusal or failure to add to the sales price and collect from the purchaser the amounts provided herein relieve such person, firm, corporation, association or copartnership from the tax levied by this division.
(c) All taxes paid in pursuance to this division or any other statute enacted in this connection shall conclusively be presumed to be a direct tax on the retail consumer, precollected for the purpose of convenience and facility only.
(d) In the event that any sum is collected from a consumer that purports to be collected because of this section, whether or not the amount is actually provided for hereunder, then any such sum, except such as is collected solely because of rounding the correct amount of tax upward to the nearest cent, shall be paid to the Department of Revenue for the purposes provided in Section 40-23-35.
","history":"(Acts 1959, 2nd Ex. Sess., No. 100, p. 298, §24; Acts 1963, 2nd Ex. Sess., No. 106, p. 286, §2; Acts 1987, No. 87-662, p. 1170.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38864,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38014,"codeId":18476,"versionId":14696,"parentId":18334,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-27","shortTitle":"Section 40-23-27","catchLine":"Violator May Be Restrained from Continuing in Business.","title":"Section 40-23-27 Violator May Be Restrained from Continuing in Business.","sectionRange":null,"content":"Any taxpayer who shall violate any of the provisions of this division may be restrained from continuing in business, and the proper prosecution shall be instituted in the name of the State of Alabama by its Attorney General, by the counsel of the Department of Revenue or under their direction by any district attorney of the state until such person shall have complied with the provisions of this division.
","history":"(Acts 1959, 2nd Ex. Sess., No. 100, p. 298, §25.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38867,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38015,"codeId":18481,"versionId":14701,"parentId":18334,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-28","shortTitle":"Section 40-23-28","catchLine":"Sales Tax an Additional Tax.","title":"Section 40-23-28 Sales Tax an Additional Tax.","sectionRange":null,"content":"The tax imposed by this division shall be in addition to all other licenses and taxes levied by law as a condition precedent to engaging in any business taxable hereunder, except as in this division otherwise specifically provided.
","history":"(Acts 1959, 2nd Ex. Sess., No. 100, p. 298, §26.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38868,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38016,"codeId":18486,"versionId":14705,"parentId":18334,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-30","shortTitle":"Section 40-23-30","catchLine":"Administration and Enforcement of Division; Appointment, Etc., of Agents, Etc.","title":"Section 40-23-30 Administration and Enforcement of Division; Appointment, Etc., of Agents, Etc.","sectionRange":null,"content":"The administration of this division is vested in and shall be exercised by the Department of Revenue, except as otherwise herein provided, and the enforcement of any of the provisions of this division in any of the courts of the state shall be under the jurisdiction and supervision of the department, and the department may require the assistance of, and act through the district attorney and the Attorney General of the state, and any legal counsel of the Department of Revenue.
The department shall appoint as needed such agents, clerks and stenographers as may be necessary to enforce provisions of this division under the provisions of the merit system, who shall perform such duties as may be required, and such duly appointed and qualified agents are authorized to act for the department as it may direct and as is authorized by law.
Before entering upon the duties of their office, all agents of the department for the administration of the sales tax shall execute to the State of Alabama a bond, to be approved by the Governor, in the amount of $5,000, for the faithful performance of their duties.
","history":"(Acts 1943, No. 122, p. 123; Acts 1959, 2nd Ex. Sess., No. 100, p. 298, §28; Acts 1961, Ex. Sess., No. 208, p. 2190.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38869,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38017,"codeId":18491,"versionId":14709,"parentId":18334,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-31","shortTitle":"Section 40-23-31","catchLine":"Department to Make Rules and Regulations.","title":"Section 40-23-31 Department to Make Rules and Regulations.","sectionRange":null,"content":"The Department of Revenue shall from time to time promulgate such rules and regulations for making returns and for ascertainment, assessment and collection of the tax imposed hereunder as it may be deemed necessary to enforce its provisions; and upon request shall furnish any taxpayer with a copy of such rules and regulations. The department may adopt rules and regulations providing for the issuance of permits to manufacturers to purchase tangible personal property without the payment to the vendor of the sales tax, and providing for such manufacturer to report and pay such tax directly to the department, in instances where the department determines that it is practically impossible at the time of purchase for such manufacturer or his vendors to determine with any degree of certainty the applicability of such tax, and that such provisions will facilitate and expedite the collection of the tax which may be due from such consumer; and such provisions may also be made applicable to persons engaged in the business of mining, quarrying, compounding or processing tangible personal property, railroads, transportation companies and others.
","history":"(Acts 1959, 2nd Ex. Sess., No. 100, p. 298, §29.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38870,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38018,"codeId":18497,"versionId":14714,"parentId":18334,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-34","shortTitle":"Section 40-23-34","catchLine":"Proceeds of Tax to Be Deposited in Treasury.","title":"Section 40-23-34 Proceeds of Tax to Be Deposited in Treasury.","sectionRange":null,"content":"All taxes or other funds received or collected by the Department of Revenue under the provisions of this division shall be without delay deposited in the Treasury.
","history":"(Acts 1959, 2nd Ex. Sess., No. 100, p. 298, §31.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38871,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38020,"codeId":18515,"versionId":24297,"parentId":18334,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-36","shortTitle":"Section 40-23-36","catchLine":"Discounts.","title":"Section 40-23-36 Discounts.","sectionRange":null,"content":"(a) The Governor may, by executive order, authorize the Department of Revenue to provide by proper rules and regulations for the allowance of a discount, not to exceed five percent of the first $100 of taxes levied and two percent of the taxes levied over $100 by this division and due and payable to the state by any person licensed under the provisions hereof; provided, that no discount shall be authorized or allowed upon any taxes which are not paid before delinquency, as in this division provided.
(b) For any taxes collected by the license holder on or after June 1, 1996, the Governor may, by executive order, authorize the Department of Revenue to provide by proper rules and regulations for a maximum discount amount or rate to any license holder and shall be limited to that amount or rate for each retail license holder regardless of the number of retail locations of that license holder within the state.
","history":"(Acts 1959, 2nd Ex. Sess., No. 100, p. 298, §34; Acts 1996, No. 96-785, p. 1459, §2; Act 2000-731, p. 1578, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38873,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38021,"codeId":18528,"versionId":47798,"parentId":18334,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-37","shortTitle":"Section 40-23-37","catchLine":"Agricultural Machinery and Equipment - Tax Imposed; Rate.","title":"Section 40-23-37 Agricultural Machinery and Equipment - Tax Imposed; Rate.","sectionRange":null,"content":"There is hereby levied, in lieu of the state sales tax levied by Section 40-23-2, a privilege or license tax against the person on account of the business activities engaged in and in the amount to be determined by the application of rates against gross sales, or gross receipts, as the case may be as follows:
Upon every person, firm, or corporation engaged or continuing within this state in the business of selling at retail any machine, machinery, vessel, or equipment that is used in planting, cultivating, and harvesting farm products used in the capture, attempted capture, or processing of fish or other seafood by means of commercial fishing by a holder of a commercial license issued pursuant to Chapter 12 of Title 9; or used in connection with the production of agricultural produce or products, livestock or poultry on farms, and the parts of such machines, machinery, vessel, or equipment, attachments and replacements therefor which are made or manufactured for use on or in the operation of such machine, machinery, vessel, or equipment, and which are necessary to and customarily used in the operation of such machine, machinery, vessel, or equipment, an amount equal to one and one-half percent of the gross proceeds of the sale thereof; provided, that the one and one-half percent rate herein prescribed with respect to parts, attachments and replacements shall not apply to any automotive vehicle or trailer designed primarily for public highway use, except farm trailers used primarily in the production and harvesting of agricultural commodities.
Where any used machine, machinery, vessel, or equipment that is used in planting, cultivating and harvesting farm products, or used in connection with the production of agricultural produce or products, livestock, and poultry on farms is taken in trade or in a series of trades as a credit or part payment on a sale of a new or used machine, machinery, vessel, or equipment, the tax levied herein shall be paid on the net difference, that is, the price of the new or used machine, machinery, vessel, or equipment sold, less the credit for the used machine, machinery, vessel, or equipment taken in trade.
","history":"(Acts 1965, No. 383, p. 516, §1; Acts 1966, Ex. Sess., No. 405, p. 550; Acts 1973, No. 1072, p. 1826; Act 2022-199, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38874,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38022,"codeId":18535,"versionId":14737,"parentId":18334,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-38","shortTitle":"Section 40-23-38","catchLine":"Agricultural Machinery and Equipment - Enforcement; Application of Administrative Provisions of This Division.","title":"Section 40-23-38 Agricultural Machinery and Equipment - Enforcement; Application of Administrative Provisions of This Division.","sectionRange":null,"content":"Section 40-23-37 shall be enforced by the Commissioner of Revenue and the Department of Revenue in the same way, and subject to the same rules and regulations as the state sales tax is enforced as provided in this division, and the administrative and enforcement provisions of this division shall be applicable to the enforcement of Section 40-23-37 to the same extent as in the collection and enforcement of the state sales tax.
","history":"(Acts 1965, No. 383, p. 516, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38875,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38023,"codeId":18540,"versionId":22192,"parentId":18334,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-39","shortTitle":"Section 40-23-39","catchLine":"Refund of Sales Taxes Paid on Certain Property Purchased in State for Export to Foreign Country; Certain Passenger Vehicles and Trucks Exempt from Sales and Use Taxes.","title":"Section 40-23-39 Refund of Sales Taxes Paid on Certain Property Purchased in State for Export to Foreign Country; Certain Passenger Vehicles and Trucks Exempt from Sales and Use Taxes.","sectionRange":null,"content":"(a) Notwithstanding any other provision of law, the purchaser of tangible property purchased in the state, with the intent that the property is to be retained in the state only temporarily and is solely for export to a foreign country, shall be entitled to a refund from the Department of Revenue against the total amount of all sales taxes paid if the purchaser’s records reflect that it was the intent of the purchaser to use the property in a foreign country at the time of purchase and that, in fact, the property was exported from Alabama, and that when ocean transportation is required and scheduled service to the desired port overseas is available through the Port of Mobile, the Port of Mobile is used for shipment. This subsection shall apply to purchases made and stockpiled after July 1, 1996.
(b) Notwithstanding subsection (a) or any other provision of law, the purchase of a new passenger vehicle or new truck with a gross weight not exceeding 8,000 pounds:
(c) This section shall be read in pari materia with all other vehicle registration laws, specifically, Section 32-6-210.
","history":"(Acts 1996, No. 96-698, p. 1168, §1; Act 97-919, p. 310, §§ 3, 4; Act 97-936, p. 504, §§3, 4.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38876,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38025,"codeId":18572,"versionId":null,"parentId":18330,"effectiveDate":null,"supersessionDate":null,"type":"Division","displayId":"2","shortTitle":"Division 2","catchLine":"Street and Highway Contractors.","title":"Division 2 Street and Highway Contractors.","sectionRange":"§40-23-50","content":null,"history":null,"numChildren":1,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":38878,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38026,"codeId":18576,"versionId":14761,"parentId":18572,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-50","shortTitle":"Section 40-23-50","catchLine":"Tax Levied; Collection and Enforcement.","title":"Section 40-23-50 Tax Levied; Collection and Enforcement.","sectionRange":null,"content":"(a) There is hereby levied, in addition to all other taxes of every kind now imposed by law, and shall be collected, as herein provided, a privilege or license tax against the person on account of the business activities engaged in and in the amount to be determined by the application of rates against gross receipts, as follows:
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 five percent of the gross receipts derived from performance of such contracts. The term “gross receipts” is herein defined to include only those amounts derived and received by the contractor from the performance of such contracts.
(b) The proceeds of the taxes levied by this section, after deduction of the cost of administration and collection of such taxes, shall be distributed as follows:
(1) Fifteen percent of the residue remaining after deduction of the cost of administration and collection shall be paid into the State Treasury and shall be credited to the Pensions and Security Trust Fund to be used for general welfare purposes, and
(2) Eighty-five percent of the residue remaining after deduction of the cost of administration and collection shall be paid into the State Treasury and shall be credited to the Alabama Special Mental Health Fund to be used for mental health purposes.
(c) The taxes imposed pursuant to this section shall constitute a debt due the state and may be collected by civil action, in addition to all other methods provided by law and in this section. The said taxes, together with interest and penalties with respect thereto, shall constitute and be secured by a lien upon the property of any person from whom said taxes are due or who is required to pay said taxes. All provisions of the revenue laws of this state which apply to the enforcement of liens for license taxes due the state shall apply fully to the collection of the taxes levied herein, and the Department of Revenue shall collect such taxes and enforce this section and shall have and exercise for such collection and enforcement all rights and remedies that this state or the department has for collection of the state sales tax. All provisions of the state sales tax, with respect to definitions, except the definition of “gross receipts” contained therein, payment and assessment of the state sales tax, making of reports and keeping and preserving records with respect thereto, interest after the due date of tax, penalties for failure to pay tax or otherwise complying with the state sales tax statutes, the promulgation of rules and regulations and the administration and enforcement of the state sales tax statutes, which are not inconsistent with the provisions of this section when applied to the tax levied pursuant to subsection (a) of this section, shall apply to the tax levied herein. The Commissioner of Revenue and the state Department of Revenue shall have and exercise the same powers, duties and obligations with respect to the taxes levied herein as are imposed on the commissioner and the department by the state sales tax statutes. All provisions of the state sales tax statutes that are made applicable in this section to the taxes levied herein and to the administration of this section are incorporated herein by reference and made a part hereof as if fully set forth herein; provided, that the provisions of the state sales tax with respect to the collection by the taxpayer of the tax levied therein shall not apply, the taxes levied herein being levied against the person required to pay the tax to the state.
(d) The taxes levied herein shall not apply with respect to contracts made by the contractor with any county or incorporated city or town, except that contracts in which the State of Alabama is a joint party with the city, town or county shall be subject to the tax, nor to that portion of the gross receipts received by the contractor constituting additional amounts paid to the contractor under contractual escalation provisions allowing for an increase in the contract price for escalations in the cost of fuels, materials, and/or labor.
","history":"(Acts 1963, No. 308, p. 787; Acts 1971, No. 1517, p. 2635; Acts 1981, No. 81-682, p. 1151; Acts 1983, No. 83-723, p. 1177.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38879,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38027,"codeId":18603,"versionId":null,"parentId":18329,"effectiveDate":null,"supersessionDate":null,"type":"Article","displayId":"2","shortTitle":"Article 2","catchLine":"Use Tax.","title":"Article 2 Use Tax.","sectionRange":"§40-23-60 to §40-23-88","content":null,"history":null,"numChildren":16,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":38880,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38028,"codeId":18605,"versionId":50090,"parentId":18603,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-60","shortTitle":"Section 40-23-60","catchLine":"Definitions.","title":"Section 40-23-60 Definitions.","sectionRange":null,"content":"For the purpose of this article, the following terms have the respective meanings ascribed to them in this section:
(1) PERSON or COMPANY. Any individual, firm, company, partnership, association, corporation, receiver or trustee, or any other group or combination acting as a unit, and the plural as well as the singular number, unless the intention to give a more limited meaning is disclosed by the context.
(2) DEPARTMENT. The Department of Revenue of the State of Alabama.
(3) COMMISSIONER. The Commissioner of Revenue of the State of Alabama.
(4) WHOLESALE SALE or SALE AT WHOLESALE. Any one of the following:
a. A sale of tangible personal property by wholesaler to licensed retail merchants, jobbers, dealers, or other wholesalers for resale and does not include a sale by wholesalers to users or consumers, not for resale.
b. A sale of tangible personal property or products, including iron ore, and including the furnished container and label of such property or products, to a manufacturer or compounder which enter into and become an ingredient or component part of the tangible personal property or products which the manufacturer or compounder manufactures or compounds for sale, whether or not such tangible personal property or product used in manufacturing or compounding a finished product is used with the intent that it become a component of the finished product; provided, however, that it is the intent of this section that no sale of capital equipment, machinery, tools, or product shall be included in the term “wholesale sale.” The term “capital equipment, machinery, tools, or product” shall mean property that is subject to depreciation allowances for Alabama income tax purposes.
c. A sale of containers intended for one-time use only, and the labels thereof, when the containers are sold without contents to persons who sell or furnish the containers along with the contents placed therein for sale by such persons.
d. A sale of pallets intended for one-time use only when the pallets are sold without contents to persons who sell or furnish the pallets along with the contents placed thereon for sale by such persons.
e. A sale to a manufacturer or compounder of crowns, caps, and tops intended for one-time use employed and used upon the containers in which the manufacturer or compounder markets the manufacturer’s or compounder’s products.
f. A sale of containers to persons engaged in selling or otherwise supplying or furnishing baby chicks to growers thereof where the containers are used for the delivery of the chicks or a sale of containers for use in the delivery of eggs by the producer thereof to the distributor or packer of the eggs even though the containers used for delivery of baby chicks or eggs may be recovered for reuse.
g. A sale of bagging and ties used in preparing cotton for market.
h. A sale of commercial fish feed including concentrates, supplements, and other feed ingredients when such substances are used as ingredients in mixing and preparing feed for fish raised to be sold on a commercial basis.
i. A sale of bait used to capture or attempt to capture fish or other seafood in the process of commercial fishing, as defined in Section 40-23-1, by a holder of a commercial license issued pursuant to Chapter 12 of Title 9.
j. A sale of tangible personal property to any person engaging in the business of leasing or renting such tangible personal property to others, if the tangible personal property is purchased for the purpose of leasing or renting it to others under a transaction subject to the privilege or license tax levied in Article 4 of Chapter 12 against any person engaging in the business of leasing or renting tangible personal property to others.
k. A purchase or withdrawal of parts or materials from stock by any person licensed under this article where the parts or materials are used in repairing or reconditioning the tangible personal property of the licensed person which tangible personal property is a part of the stock of goods of the licensed person, offered for sale by the licensed person and not for use or consumption of the licensed person.
l. A sale to meat packers, manufacturers, compounders, or processors of meat products of all casings used in moulding or forming wieners and Vienna sausages, even though the casings may be recovered for reuse.
(5) SALE AT RETAIL or RETAIL SALE. All sales of tangible personal property except those above defined as wholesale sales. The quantities of goods sold or prices at which sold are immaterial in determining whether or not a sale is at retail. Sales of building materials to contractors, builders, or landowners for resale or use in the form of real estate are retail sales in whatever quantity sold. Sales of building materials, fixtures, or other equipment to a manufacturer or builder of modular buildings for use in manufacturing, building, or equipping a modular building ultimately becoming a part of real estate situated in the State of Alabama are retail sales, and the use, sale, or resale of such building shall not be subject to the tax. Sales of tangible personal property to undertakers and morticians are retail sales and subject to the tax at the time of purchase, but are not subject to the tax on resale to the consumer. Sales of tangible personal property or products to manufacturers, quarry operators, mine operators, or compounders, which are used or consumed by them in manufacturing, mining, quarrying, or compounding and do not become an ingredient or component part of the tangible personal property manufactured or compounded as provided in subdivision (4) are retail sales. The term “sale at retail” or “retail sale” shall also mean and include the withdrawal, use, or consumption of any tangible personal property by anyone who purchases same at wholesale, except property that has been previously withdrawn from the business or stock and so used or consumed and with respect to which property the tax has been paid because of such previous withdrawal, use, or consumption, except property that enters into and becomes an ingredient or component part of tangible personal property or products manufactured or compounded for sale as provided in subdivision (4); and not for the personal and private use or consumption of any person so withdrawing, using, or consuming the same, and such wholesale purchaser shall report and pay the taxes thereon; and except refinery, residue, or fuel gas, whether in a liquid or gaseous state, that has been generated by, or is otherwise a by-product of, a petroleum-refining process, which gas is then utilized in the process to generate heat or is otherwise utilized in the distillation or refining of petroleum products. The term “retail sale” or “sale at retail” shall also mean and include the sale of tangible personal property previously purchased at wholesale for the purpose of leasing or renting under a transaction subject to the privilege or license tax levied in Article 4 of Chapter 12, regardless of whether the sale is to the person who theretofore leased or rented the tangible personal property or to some other person.
(6) BUSINESS. All activities engaged in, or caused to be engaged in, with the object of gain, profit, benefit, or advantage, either direct or indirect, and not excepting subactivities producing marketable commodities used or consumed in the main business activity, each of which subactivities shall be considered business engaged in, taxable in the class in which it falls.
(7) STORAGE. Any keeping or retention in this state for any purpose except sale in the regular course of business or subsequent use solely outside this state of tangible personal property purchased at retail.
(8) USE. The exercise of any right or power over tangible personal property incident to the ownership of that property, or by any transaction where possession is given, except that it shall not include the sale of that property in the regular course of business.
(9) PURCHASE. Acquired for a consideration, whether such acquisition was effected by a transfer of title, or of possession or of both, or a license to use or consume; whether such transfer shall have been absolute or conditional, and by whatsoever means the same shall have been effected; and whether such consideration be a price or rental in money, or by way of exchange or barter.
(10) SALES PRICE. The total amount for which tangible personal property is sold, including any services, including transportation, that are a part of the sale, valued in money, whether paid in money or otherwise, and includes any amount for which credit is given to the purchaser by the seller, without any deduction therefrom on account of the cost of the property sold, the cost of the materials used, labor or service cost, interest charged, losses, or any other expenses whatsoever; provided, that cash discounts allowed and taken on sales shall not be included and sales price shall not include the amount charged for property returned by customers when the entire amount charged therefor is refunded either in cash or by credit.
(11) IN THIS STATE or IN THE STATE. Within the exterior limits of the State of Alabama, and includes all territory within such limits owned by or ceded to the United States of America.
(12) AUTOMOTIVE VEHICLE. A power shovel, dragline, crawler, crawler crane, ditcher or any similar machine which is self-propelled, in addition to self-propelled machines which are used primarily as instruments of conveyance.
(13) PREPAID TELEPHONE CALLING CARD. A sale of a prepaid telephone calling card or a prepaid authorization number, or both, shall be deemed the sale of tangible personal property subject to the tax imposed pursuant to this chapter. For purposes of this subdivision, the sale of prepaid wireless service that is evidenced by a physical card constitutes the sale of a prepaid telephone calling card, and the sale of prepaid wireless service that is not evidenced by a physical card constitutes the sale of a prepaid authorization number.
(14) PREPAID WIRELESS SERVICE. The right to use mobile telecommunications service, which must be paid for in advance and that is sold in predetermined units or dollars of which the number declines with use or the expiration of time in a known amount, and which may include rights to use non-telecommunications services or to download digital products or digital content. For purposes of this subdivision, mobile telecommunications service has the meaning ascribed by Section 40-21-120.
(15) REMOTE USE TAX. Amounts collected from out of state vendors who, on October 1, 2012, were or would have been remote sellers as defined in Section 40-23-171; and amounts remitted by consumers on the individual tax return.
(16) FOOD. Food as defined in 7 U.S.C. § 2012 for the purposes of the federal Supplemental Nutrition Assistance Program regardless of where or by what means food is sold. In the event that the federal Supplemental Nutrition Assistance Program definition no longer exists, the Legislature shall provide a new definition of “food” by general law.
","history":"(Acts 1939, No. 67, p. 96; Code 1940, T. 51, §787; Acts 1956, 2nd Ex. Sess., No. 106, p. 431; Acts 1959, 2nd Ex. Sess., No. 83, p. 267; Acts 1959, No. 111, p. 632; Acts 1963, No. 291, p. 747; Acts 1965, No. 699, p. 1301; Acts 1965, No. 792, p. 1482; Acts 1971, 1st Ex. Sess., No. 101, p. 179; Acts 1971, No. 2397, p. 3828; Acts 1983, No. 83-721, p. 1173; Acts 1986, Ex. Sess., No. 86-690, p. 93; Acts 1997, No. 97-648, p. 1201, §2; Act 97-867, 1st Sp. Sess., p. 208, §5; Act 99-570, p. 1255, §1; Act 2012-599, 1st Sp. Sess., p. 1924, §1; Act 2014-336, p. 1240, §2; Act 2022-199, §1; Act 2023-554, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38881,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38031,"codeId":18630,"versionId":47800,"parentId":18603,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-63","shortTitle":"Section 40-23-63","catchLine":"Agricultural Machinery or Equipment - Tax Imposed; Rate; Who Liable.","title":"Section 40-23-63 Agricultural Machinery or Equipment - Tax Imposed; Rate; Who Liable.","sectionRange":null,"content":"There is hereby levied and imposed an excise tax on the storage, use, or other consumption in this state of any machine, machinery, vessel, or equipment which is used in planting, cultivating, and harvesting farm products; used in the capture, attempted capture, or processing fish or other seafood by means of commercial fishing, as defined in Section 40-23-1, by a holder of a commercial license issued pursuant to Chapter 12 of Title 9; or used in connection with the production of agricultural produce or products, livestock or poultry on farms, and the parts of such machines, machinery, vessels, or equipment, attachments, and replacements therefor which are made or manufactured for use on or in the operation of such machine, machinery, vessel, or equipment, and which are necessary to and customarily used in the operation of such machine, machinery, vessel, or equipment, which is purchased at retail after October 1, 1966, for storage, use, or other consumption in this state, at the rate of one and one-half percent of the sales price of such property or the amount of tax collected by the seller, whichever is greater, provided, however, when the seller follows the Department of Revenue’s suggested use tax brackets and the records of the seller prove that following the brackets resulted in a net undercollection of tax for the month, the seller may report the tax due or tax collected whichever is less, regardless of whether the retailer is or is not engaged in business in this state. The tax herein levied and imposed shall be in lieu of the excise tax levied and imposed by Section 40-23-61; provided, that the one and one-half percent rate herein prescribed with respect to parts, attachments and replacements shall not apply to any automotive vehicle or trailer designed primarily for public highway use except farm trailers used primarily in the production and harvesting of agricultural commodities.
Every person storing, using, or otherwise consuming in this state such tangible personal property purchased at retail shall be liable for the tax imposed by this article, and the liability shall not be extinguished until the tax has been paid to this state; provided, that a receipt from a retailer maintaining a place of business in this state or a retailer authorized by the Department of Revenue under the rules as the Commissioner of Revenue may prescribe, to collect the tax imposed hereby and who shall for the purpose of this article be regarded as a retailer maintaining a place of business in this state, given to the purchaser in accordance with the provisions of Section 40-23-67, shall be sufficient to relieve the purchaser from further liability for a tax to which such receipt may refer.
","history":"(Acts 1965, No. 384, p. 518, §1; Acts 1965, 2nd Ex. Sess., No. 58, p. 83, §1; Acts 1966, Ex. Sess., No. 412, p. 557; Acts 1973, No. 1076, p. 1830; Acts 1987, No. 87-647, p. 1151, §2; Act 2022-199, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38884,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38032,"codeId":18636,"versionId":14802,"parentId":18603,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-64","shortTitle":"Section 40-23-64","catchLine":"Agricultural Machinery or Equipment - Enforcement; Application of Administrative Provisions of Article.","title":"Section 40-23-64 Agricultural Machinery or Equipment - Enforcement; Application of Administrative Provisions of Article.","sectionRange":null,"content":"Section 40-23-63 shall be enforced by the Commissioner of Revenue and state Department of Revenue in the same way, and subject to the same rules and regulations as the state use tax is enforced as provided in this article; and the administrative and enforcement provisions of this article shall be applicable to the enforcement of Section 40-23-63 to the same extent as in the collection and enforcement of the state use tax.
","history":"(Acts 1965, No. 384, p. 518, §2; Acts 1965, 2nd Ex. Sess., No. 58, p. 83, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38885,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38033,"codeId":18643,"versionId":14806,"parentId":18603,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-65","shortTitle":"Section 40-23-65","catchLine":"Credit for Sales or Use Tax Paid to Another State.","title":"Section 40-23-65 Credit for Sales or Use Tax Paid to Another State.","sectionRange":null,"content":"If a sales or use tax equal to or greater than the amount of the Alabama tax is paid to another state under a requirement of law, the property which is the subject of such tax when imported for use or consumption in Alabama is not subject to the use tax, which is required to be paid by Section 40-23-61. If the amount of tax paid to the other state is less than the Alabama tax, then the difference between the out-of-state tax and the Alabama tax must be paid. No credit will be allowed for taxes paid on tangible personal property in any state which does not give credit for taxes paid on similar property in Alabama. The Commissioner of Revenue shall require such proof of payment of tax to another state as he deems to be necessary and proper.
The Commissioner of Revenue shall adopt such rules and regulations as he deems necessary for the proper administration of this section.
","history":"(Acts 1965, No. 761, p. 1371.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38886,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38034,"codeId":18648,"versionId":14811,"parentId":18603,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-66","shortTitle":"Section 40-23-66","catchLine":"Retail Sellers to Register and Give Information.","title":"Section 40-23-66 Retail Sellers to Register and Give Information.","sectionRange":null,"content":"Every seller engaged in making retail sales of tangible personal property for storage, use or other consumption in this state, who:
shall register with the department and give the name and address of each agent operating in this state, the location of any and all distribution or sales houses or offices or other places of business in this state, the number of persons in Alabama to whom catalogs are delivered, by mail or otherwise, the number of persons in Alabama from whom orders are received, by mail or otherwise, together with the amount of the purchase price charged and received and such other information as the department may require with respect to matters pertinent to the enforcement of this article; provided, that this section shall not apply to a seller, holding a license obtained pursuant to the provisions of Division 1 of Article 1 of this chapter.
","history":"(Acts 1939, No. 67, p. 96; Code 1940, T. 51, §790; Acts 1945, No. 428, p. 671, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38887,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38035,"codeId":18655,"versionId":14816,"parentId":18603,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-67","shortTitle":"Section 40-23-67","catchLine":"Seller to Collect Tax; Seller Not to Assume or Absorb Tax.","title":"Section 40-23-67 Seller to Collect Tax; Seller Not to Assume or Absorb Tax.","sectionRange":null,"content":"Every such seller making sales of tangible personal property for storage, use or other consumption in this state, not exempted under the provisions of Section 40-23-62, shall at the time of making such sales or, if the storage, use or other consumption of the tangible personal property is not then taxable hereunder, at the time such storage, use or other consumption becomes taxable hereunder, collect the tax imposed by this article from the purchaser, and give to the purchaser a receipt therefor in the manner and form prescribed by the department. The tax required to be collected by the seller from the purchaser shall be displayed separately from the list, advertised in the premises, marked or other price on the sales check or other proof of sales. It shall be unlawful for any such seller to advertise or hold out or state to the public or to any customer, directly or indirectly, that the tax or any part thereof imposed by this article will be assumed or absorbed by the seller or that it will not be added to the selling price of the property sold, or if added that it or any part thereof will be refunded. Any person violating any of the provisions of this section shall be guilty of a misdemeanor. The tax herein required to be collected by the seller shall constitute a debt owned by the seller to this state.
","history":"(Acts 1939, No. 67, p. 96; Code 1940, T. 51, §791.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38888,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38036,"codeId":18660,"versionId":44010,"parentId":18603,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-68","shortTitle":"Section 40-23-68","catchLine":"Seller to File Returns.","title":"Section 40-23-68 Seller to File Returns.","sectionRange":null,"content":"(a) Except as otherwise provided in subsection (f), the tax imposed by this article shall be due and payable to the department monthly on or before the 20th day of the month next succeeding each month during which the storage, use, or other consumption of tangible personal property became taxable hereunder.
(b) Every seller or person engaged in making retail sales of tangible personal property for storage, use, or other consumption in this state, who alternatively:
(1) Maintains, occupies, or uses, permanently or temporarily, directly or indirectly, or through a subsidiary, or agent by whatever name called, an office, place of distribution, sales, or sample room or place, warehouse or storage place, or other place of business;
(2) Qualifies to do business or registers with the state to collect the tax levied by this chapter;
(3) Employs or retains under contract any representative, agent, salesman, canvasser, solicitor, or installer operating in this state under the authority of the person or its subsidiary for the purpose of selling, delivering, or the taking of orders for the sale of tangible personal property or any services taxable under this chapter or otherwise solicits and receives purchases or orders by any agent or salesman;
(4) Solicits, pursuant to a contract with a broadcaster or publisher located in this state, orders for tangible personal property by means of advertising which is disseminated primarily to consumers located in this state and only secondarily to bordering jurisdictions;
(5) Solicits orders for tangible personal property by mail if the solicitations are substantial and recurring and if the retailer benefits from any banking, financing, debt collection, telecommunication, or marketing activities occurring in this state or benefits from the location in this state of authorized installation, servicing, or repair facilities. Notwithstanding the previous sentence, a seller who contracts with a provider of call center services shall not be deemed to benefit from telecommunication activities occurring in this state or from the location in this state of authorized installation, servicing, or repair facilities merely as a result of contracting for and receiving only call center services from a call center located in this state. The preceding sentence shall only apply for call centers, as authorized or specified in Division 3 of Article 17 of Chapter 10 of Title 41, and placed in service in this state on or before October 1, 2003;
(6) Has, under a franchise or licensing arrangement or contract, a franchisee or licensee operating under its trade name;
(7) Solicits, pursuant to a contract with a cable television operator located in this state, orders for tangible personal property by means of advertising which is transmitted or distributed over a cable television system in this state;
(8) Solicits orders for tangible personal property by means of a telecommunication or television shopping system which is intended by the person to be broadcast by cable television or other means of broadcasting, to consumers located in this state;
(9) Maintains any other contact with this state that would allow this state to require the seller to collect and remit the tax due under the provisions of the Constitution and laws of the United States; or
(10) Distributes catalogs or other advertising matter and by reason thereof receives and accepts orders from residents, within the State of Alabama, shall be subject to all the provisions of this chapter and, except as otherwise provided in subsection (f), on or before the 20th day of the month following the close of each month, shall file with the department a return for the preceding month in such form as may be prescribed by the department showing the total sales price of the tangible personal property sold by such seller, the storage, use, or consumption of which became subject to the tax imposed by this article during the preceding month and such other information as the department may deem necessary for the proper administration of this article.
(c) The return shall be accompanied by a remittance of the amount of tax herein required to be collected by the seller during the period covered by the return. Returns shall be signed by the seller or his or her duly authorized agent but need not be verified by oath.
(d) Except as otherwise provided in subsection (f), every person purchasing tangible personal property, the storage, use, or other consumption of which is subject to the tax imposed by this article, and who has not paid the tax due with respect thereto to a seller required or authorized hereunder to collect the tax, on or before the 20th day of the month following the close of each month, shall file with the department a return for the preceding month in such form as may be prescribed by the department showing the total sales price of the tangible personal property purchased by such person, the storage, use, or other consumption of which became subject to the tax imposed by this article during the preceding month and with respect to which the tax was not paid to a seller required or authorized hereunder to collect the tax, and such other information as the department may deem necessary for the proper administration of this article. The return shall be accompanied by a remittance of the amount of tax herein imposed and not paid to a seller required or authorized hereunder to collect the tax during the period covered by the return. Returns shall be signed by the person liable for the tax or his duly authorized agent, but need not be verified by oath.
(e) For the purpose of the proper administration of this article and to prevent evasion of the tax and the duty to collect the same herein imposed, it shall be presumed that tangible personal property sold by any person for delivery in this state is sold for storage, use, or other consumption in this state unless the person selling such property has taken from the purchaser a certificate signed by and bearing the name and address of the purchaser to the effect that the property was purchased for resale, and it shall be further presumed that tangible personal property shipped to this state by the purchaser thereof was purchased from a retailer on and after March 1, 1939, for storage, use, or other consumption in this state. Except as otherwise provided in subsection (f), any seller making cash and credit sales for storage, use, or other consumption in Alabama may report such cash sales and shall thereafter include in each monthly report all credit collections made during the preceding month, and shall pay the taxes due thereon at the time of filing such report, but in no event shall the gross proceeds of credit sales be included in the measure of the tax to be paid until collections of such credit sales shall have been made.
(f) Taxpayers meeting the criteria set forth in this subsection may elect to file quarterly, semi-annually, or annually. Any election to file quarterly, semi-annually, or annually shall be made in writing no later than February 20 of each year and shall be filed with the department in the manner prescribed by the department. The department, for good cause, may extend the time for making any return required under this chapter, but the time for filing any such return shall not be extended for a period greater than 30 days from the date such return is due to be made. Qualifying taxpayers electing to file quarterly, semi-annually, or annually shall report to the department, on a form prescribed by the department, a true and correct statement showing such information as the department may require. Qualifying taxpayers shall pay to the department the amount of tax shown to be due on or before the applicable deadlines, under any rules as may be prescribed, as follows:
(1) When the total state use tax for which any person is liable under this article is less than two thousand four hundred dollars ($2,400) during the preceding calendar year, the person may elect to file quarterly returns. Quarterly returns and payment of the amount of tax shown to be due shall be due on or before the 20th day of the month next succeeding the end of the quarter for which the tax is due under such rules as may be prescribed by the department.
(2) When the total state use tax for which any person is liable under this article is less than one thousand two hundred dollars ($1,200) for the preceding calendar year or the person liable for the tax has made no more than two transactions subject to use tax during the preceding calendar year, the person may elect to file semi-annual returns. The semi-annual returns and payment of the tax shown to be due shall be due on or before July 20 and January 20 following the end of the six-month period for which the tax is due.
(3) When the total state use tax for which any person is liable under this article during the preceding calendar year is less than six hundred dollars ($600) or the person liable for the tax has made no more than one transaction subject to use tax during the preceding calendar year, the person may elect to file an annual return. The annual return and payment of the tax shown to be due shall be due on or before January 20 following the end of the annual period for which the tax is due.
","history":"(Acts 1939, No. 67, p. 96; Code 1940, T. 51, §792; Acts 1945, No. 428, p. 671, §3; Acts 1991, No. 91-576, p. 1060, §1; Acts 1991, No. 91-624, p. 1165, §1; Act 98-192, p. 310, §9; Act 2002-418, p. 1068, §6; Act 2002-525, p. 1371, §1; Act 2019-253, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38889,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38037,"codeId":18663,"versionId":14822,"parentId":18603,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-74","shortTitle":"Section 40-23-74","catchLine":"Extension of Time for Making Return.","title":"Section 40-23-74 Extension of Time for Making Return.","sectionRange":null,"content":"The department for good cause may extend for not to exceed 30 days the time for making any return required under the provisions of this article.
","history":"(Acts 1939, No. 67, p. 96; Code 1940, T. 51, §798.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38890,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38038,"codeId":18672,"versionId":14827,"parentId":18603,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-75","shortTitle":"Section 40-23-75","catchLine":"Deposit of Security.","title":"Section 40-23-75 Deposit of Security.","sectionRange":null,"content":"The department, whenever it deems it necessary to insure compliance with the provisions of this article, may require any person subject thereto to deposit with it such security as the department may determine. The same may be sold by the department at public auction if it becomes necessary so to do in order to recover any tax, or any amount herein required to be collected, interest or penalty due. Notice of such sale may be served upon the person who deposited such security personally or by certified or registered mail; if by mail, service shall be made by certified or registered notice, return receipt requested, addressed to the person at his address as the same appears in the records of the department. Upon any such sale, the surplus, if any, above the amounts due under this article shall be returned to the person who deposited the security.
","history":"(Acts 1939, No. 67, p. 96; Code 1940, T. 51, §799.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38891,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38039,"codeId":18676,"versionId":33571,"parentId":18603,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-77","shortTitle":"Section 40-23-77","catchLine":"Discount; Distribution and Expenditure.","title":"Section 40-23-77 Discount; Distribution and Expenditure.","sectionRange":null,"content":"A discount of three percent of the taxes levied by this article due and payable to the state shall be allowed to the seller or vendor; provided, that the taxes due by such seller are paid before same becomes delinquent, as in this article provided.
Effective June 1, 2001, the Governor may, by executive order, authorize the Department of Revenue to provide by proper rules and regulations for the allowance of a discount, not to exceed three percent (3%) of the taxes levied by this article due and payable to the state by the seller or vendor; provided that the taxes due by such seller are paid before same becomes delinquent, as in this article provided.
For any taxes collected by the seller or vendor on or after June 1, 2001, the Governor may, by executive order, authorize the Department of Revenue to provide by proper rules and regulations for a maximum discount amount or rate for each seller or vendor regardless of the number of locations of that seller or vendor within the state.
Beginning June 1, 2001, until September 30, 2002, the balance of the sum equal to the increase in receipts due to any maximum discount amount or rate as provided herein shall first be credited to the Department of Conservation and Natural Resources for (1) the sum equal to the interest the Game and Fish Fund and the Seafood Fund would have earned on the sale of hunting and/or fishing licenses, which is required to be credited to the funds by Federal Regulation 50 CFR 80.4a(3), and (2) a sum equal to one million dollars ($1,000,000) for the Coastal Programs; and any remaining balance shall be credited to the State General Fund.
Beginning October 1, 2002, and each fiscal year thereafter the lesser of five hundred thousand dollars ($500,000) or the entire amount of the sum equal to the increase in receipts due to any maximum discount amount or rate as provided herein shall be credited to the Department of Human Resources and expended for the foster children program. Any remaining balance shall first be credited to the Department of Conservation and Natural Resources to be allocated in whole or in part to the following: (1) To the Game and Fish Fund and the Seafood Fund in an amount at least equal to the interest that each fund would have earned on the sale of hunting and/or fishing licenses which is required to be credited to the funds by the Federal Regulation 50 CFR 80.4a(3), and (2) to the Coastal Programs, a sum equal to one million dollars ($1,000,000); and any remaining balance shall be credited to the State General Fund. Notwithstanding the foregoing, for the fiscal years ending September 30, 2012, and September 30, 2013, only, the one million dollars ($1,000,000) that would otherwise be distributed to the Coastal Programs shall instead be distributed to the State General Fund.
","history":"(Acts 1939, No. 67, p. 96; Code 1940, T. 51, §801; Acts 1943, No. 278, p. 239; Acts 1992, No. 92-186, p. 349, §67; Act 2001-669, p. 1402, §1; Act 2011-642, p. 1633, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38892,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38040,"codeId":18683,"versionId":14836,"parentId":18603,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-82","shortTitle":"Section 40-23-82","catchLine":"Final Return of Retailer Selling Out; Purchaser to Retain Part of Purchase Money.","title":"Section 40-23-82 Final Return of Retailer Selling Out; Purchaser to Retain Part of Purchase Money.","sectionRange":null,"content":"If any retailer liable for an amount of tax herein required to be collected shall sell out his business or stock of goods or shall quit the business, he shall make a final return and payment within 15 days after the date of selling or quitting business. His successor, successors or assigns, if any, shall be required to withhold sufficient of the purchase money to cover the amount of such taxes herein required to be collected and interest or penalties due and unpaid until such time as the former owner shall produce a receipt from the department showing that they have been paid, or a certificate stating that no amount is due. If the purchaser of a business or stock of goods shall fail to withhold purchase money as above provided, he shall be personally liable for the payment of the amount of taxes herein required to be collected by the former owner, interest and penalties accrued and unpaid by any former owner, owners or assignors.
","history":"(Acts 1939, No. 67, p. 96; Code 1940, T. 51, §805.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38893,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38041,"codeId":18689,"versionId":14841,"parentId":18603,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-83","shortTitle":"Section 40-23-83","catchLine":"Records to Be Kept; Enforcement of Article; Promulgation of Regulations, Etc.","title":"Section 40-23-83 Records to Be Kept; Enforcement of Article; Promulgation of Regulations, Etc.","sectionRange":null,"content":"Every seller and every person storing, using or otherwise consuming in this state tangible personal property purchased from a retailer shall keep such records, receipts, invoices and other pertinent papers in such form as the department may require. The department or any person authorized in writing by it is hereby authorized to examine the books, papers, records and equipment of any person selling tangible personal property and any person liable for the tax imposed by this article and to investigate the character of the business of any such person in order to verify the accuracy of any return made, or if no return was made by such person, to ascertain and determine the amount required to be paid hereunder.
The department is hereby charged with the enforcement of the provisions of this article and is hereby authorized and empowered to prescribe, adopt and enforce rules and regulations relating to the administration and enforcement of the provisions of this article and to employ such accountants, auditors, investigators, assistants and clerks as may be determined to be necessary for the efficient administration of this article, under the provision of the merit system.
","history":"(Acts 1939, No. 67, p. 96; Code 1940, T. 51, §806.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38894,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38043,"codeId":18699,"versionId":14848,"parentId":18603,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-88","shortTitle":"Section 40-23-88","catchLine":"Penalties.","title":"Section 40-23-88 Penalties.","sectionRange":null,"content":"Any seller or other person failing or refusing to furnish any return hereby required to be made, or failing or refusing to furnish a supplemental return or other data required by the department, or rendering a false or fraudulent return, shall be guilty of a misdemeanor and subject to a fine of not exceeding $500 for each such offense. Any person required to make, render, sign or verify any report as aforesaid who makes any false or fraudulent return, with intent to defeat or evade the determination of an amount due required by law to be made shall be guilty of a misdemeanor, and shall for each such offense be fined not less than $300 and not more than $5,000 or be imprisoned not exceeding one year in the county jail or be subject to both said fine and imprisonment in the discretion of the court. Any violation of the provisions of this article, except as otherwise herein provided, shall be a misdemeanor and punishable as such.
","history":"(Acts 1939, No. 67, p. 96; Code 1940, T. 51, §811.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38896,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38044,"codeId":18713,"versionId":null,"parentId":18329,"effectiveDate":null,"supersessionDate":null,"type":"Article","displayId":"3","shortTitle":"Article 3","catchLine":"Taxes on Sale, Storage, and Use of Automotive Vehicles, Motorboats, Truck Trailers, Etc.","title":"Article 3 Taxes on Sale, Storage, and Use of Automotive Vehicles, Motorboats, Truck Trailers, Etc.","sectionRange":"§40-23-100 to §40-23-111","content":null,"history":null,"numChildren":11,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":38897,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38045,"codeId":18716,"versionId":14859,"parentId":18713,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-100","shortTitle":"Section 40-23-100","catchLine":"Definitions.","title":"Section 40-23-100 Definitions.","sectionRange":null,"content":"As used in this article, unless the context otherwise requires, the following terms shall have the following meanings:
(1) JUDGE OF PROBATE. The judge of probate or other licensing authority in a county.
(2) LICENSING OFFICIAL. The county official required by law to issue licenses for any automotive vehicle, motorboat, truck trailer, trailer, semitrailer, or travel trailer taxed under this article.
(3) MOTOR BOAT. A boat with one or more built-in motors or a boat with an outboard type motor or motors attached thereto by attachments intended to be permanent rather than readily removable and which motor or motors are controlled with remote controls built on or into the hull of the boat.
","history":"(Acts 1981, No. 81-665, p. 1086, §1; Acts 1994, No. 94-622, p. 1162, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38898,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38046,"codeId":18722,"versionId":14866,"parentId":18713,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-101","shortTitle":"Section 40-23-101","catchLine":"Sales Tax Levied on Automotive Vehicles, Motorboats, Truck Trailers, Manufactured Homes, Etc.; Additional Receipts and Taxes Collected.","title":"Section 40-23-101 Sales Tax Levied on Automotive Vehicles, Motorboats, Truck Trailers, Manufactured Homes, Etc.; Additional Receipts and Taxes Collected.","sectionRange":null,"content":"(a) There is hereby levied and shall be collected as herein provided a sales tax upon every person, firm, or corporation purchasing within this state, other than at wholesale, any automotive vehicle, motorboat, truck trailer, trailer, semitrailer, or travel trailer required to be registered or licensed with the judge of probate of any county in this state from any person, firm or corporation that is not a licensed dealer engaged in selling automotive vehicles, motorboats, truck trailers, trailers, semitrailers, or travel trailers in an amount equal to two percent of the purchase price.
(b) Commencing October 1, 1989, there is hereby levied and shall be collected, as provided for under the provisions of subsection (e) of Section 40-23-104, a sales tax in the amount equal to two percent of the purchase price on the sale of any manufactured home as defined in subsection (n) of Section 40-12-255, purchased other than at wholesale in this state from any person, firm, or corporation which is not a licensed dealer engaged in selling manufactured homes.
(c) In addition to the two percent state sales tax, there shall also be collected any applicable municipal gross receipts or sales taxes and county sales taxes on the vehicles listed in subsection (a) of this section authorized by general or local law for the local taxing jurisdiction in which the purchaser resides or, if a business, the business location. Penalties for falsifying or misrepresenting the correct taxing jurisdictions shall be as provided in subsection (b) of Section 40-29-115.
","history":"(Acts 1981, No. 81-665, p. 1086, §2; Acts 1988, 1st Ex. Sess., No. 88-867, p. 265, §4; Acts 1989, No. 89-691, p. 1358, §4; Acts 1989, No. 89-752, p. 1526, §1; Acts 1994, No. 94-622, p. 1162, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38899,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38047,"codeId":18729,"versionId":14869,"parentId":18713,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-102","shortTitle":"Section 40-23-102","catchLine":"Excise Tax Levied on Storage or Use of Automotive Vehicles, Motorboats, Truck Trailers, Manufactured Homes, Etc.; Additional Receipts and Taxes Collected.","title":"Section 40-23-102 Excise Tax Levied on Storage or Use of Automotive Vehicles, Motorboats, Truck Trailers, Manufactured Homes, Etc.; Additional Receipts and Taxes Collected.","sectionRange":null,"content":"(a) There is hereby levied and shall be collected as herein provided, in lieu of the excise tax levied by subsection (c) of Section 40-23-61, an excise or use tax upon every person, firm, or corporation purchasing outside the state, other than at wholesale, any automotive vehicle, motorboat, truck trailer, trailers, semitrailer, or travel trailer, required to be registered or licensed with the judge of probate of any county in this state for use, storage, or other consumption within this state a tax in an amount equal to two percent of the purchase price.
(b) Commencing October 1, 1989, there is hereby levied and shall be collected, as provided for under the provisions of subsection (e) of Section 40-23-104, an excise or use tax in the amount equal to two percent of the purchase price on the storage, use, or other consumption in the state of any manufactured home as defined in subsection (n) of Section 40-12-255 purchased other than at wholesale outside the state on or after October 1, 1989, for storage, use, or other consumption in this state.
(c) In addition to the two percent state use tax, there shall also be collected any applicable municipal and county use tax authorized by general or local law for the local taxing jurisdiction in which the purchaser resides, or, if a business, the business location on any automotive vehicle, motorboat, truck trailer, trailer, semitrailer, or travel trailer purchased from dealers doing business outside the State of Alabama and from licensed Alabama dealers where municipal and county sales taxes were not collected at the time of purchase. Penalties for falsifying or misrepresenting the correct taxing jurisdiction shall be as provided in subsection (b) of Section 40-29-115.
","history":"(Acts 1981, No. 81-665, p. 1086, §3; Acts 1988, 1st Ex. Sess., No. 88-867, p. 265, §5; Acts 1989, No. 89-691, p. 1358, §5; Acts 1989, No. 89-752, p. 1526, §2; Acts 1994, No. 94-622, p. 1162, §3.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38900,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38048,"codeId":18734,"versionId":14872,"parentId":18713,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-103","shortTitle":"Section 40-23-103","catchLine":"Sales Tax Levied on Sale Price Less Credit for Trade-In.","title":"Section 40-23-103 Sales Tax Levied on Sale Price Less Credit for Trade-In.","sectionRange":null,"content":"Where any used automotive vehicle, motorboat, truck trailer, semitrailer, or house trailer is taken in trade or in a series of trades as a credit or part payment on the sale of a new or used automotive vehicle, motorboat, truck trailer, semitrailer, or house trailer, the tax levied in this article shall be paid on the net difference, that is, the price of the new or used vehicle, motorboat, or trailer sold less the credit for the used vehicle, motorboat, or trailer taken in trade.
","history":"(Acts 1981, No. 81-665, p. 1086, §4; Acts 1994, No. 94-622, p. 1162, §4.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38901,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38049,"codeId":18741,"versionId":14876,"parentId":18713,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-104","shortTitle":"Section 40-23-104","catchLine":"Collection of Taxes Before Registration or Licensing; Proof of Purchase Price; Proof of Payment of Tax.","title":"Section 40-23-104 Collection of Taxes Before Registration or Licensing; Proof of Purchase Price; Proof of Payment of Tax.","sectionRange":null,"content":"(a) The licensing official shall collect all of the following:
(1) The taxes levied by this article.
(2) The municipal gross receipts or sales taxes and county sales taxes authorized by general or local law on sales made by a person or firm other than a licensed dealer.
(3) The municipal and county use taxes authorized by general or local law on sales made by dealers doing business outside the State of Alabama and on sales made by licensed Alabama dealers where municipal and county sales taxes were not collected at the time of purchase.
(4) The state use tax on any such automotive vehicle, motorboat, truck trailer, trailer, semitrailer, or travel trailer required to be registered or licensed by the judge of probate.
(b) The licensing official shall require, as proof of the purchase price of the automotive vehicle, motorboat, truck trailer, trailer, semitrailer, or travel trailer to be taxed, when purchased from a licensed dealer in this state, documentation of the price upon which any state, county, or municipal sales tax was paid and which reflects the amount of such state, county, or municipal sales tax paid and any other evidence of the purchase price as shall be prescribed by the Department of Revenue. All licensed dealers in this state shall furnish to the purchaser of any of the vehicles documentation showing the amount and rate of sales or gross receipts tax collected at the time of purchase for the state and for the municipality and county where the sale was made.
(c) The licensing official shall require, as proof of the purchase price of any other automotive vehicle, motorboat, truck trailer, trailer, semitrailer, or travel trailer to be taxed, the presentment of a sworn report by the purchaser reflecting such purchase price on a form to be provided by the Department of Revenue accompanied by a properly executed bill of sale or other satisfactory evidence prescribed by the Department of Revenue.
(d) In lieu of the requirements contained in subsection (c) of this section, the purchaser may stipulate to the licensing official that the purchase price of the automotive vehicle, motorboat, truck trailer, trailer, semitrailer, or travel trailer to be taxed is equivalent to a standard value for the year, make, and model established by the Department of Revenue for the taxable item. The purchase price so stipulated shall be conclusively presumed to be the purchase price of the item for all purposes under this article.
(e) Before the registration of or licensing of any such automotive vehicle, motorboat, truck trailer, trailer, semitrailer, or travel trailer, the licensing official shall require proof of payment of the tax levied under this article deemed necessary and proper.
(f) Before the decal, which is provided for by Section 40-7-1, is issued to evidence payment of the ad valorem tax due on a manufactured home in this state, and before any homestead exemption is granted for a manufactured home, payment of the tax levied either under Section 40-23-101(b) or Section 40-23-102(b) shall be made to the licensing official of the county in which the manufactured home will be initially sited as evidenced by a properly executed bill of sale. If, however, the sales or use tax specified in either Sections 40-23-101(b) or 40-23-102(b) has been paid prior to the due date of the ad valorem tax on the manufactured home, then proof of payment for the sales or use taxes will be evidenced by a receipt and shall be deemed acceptable by the licensing official.
(g) Any law to the contrary notwithstanding, the licensing official shall remit all county and municipal sales, gross receipts, and use taxes collected directly to the appropriate county or municipal tax recipient as otherwise provided by law, within 20 days following the last day of the month in which those taxes were collected. In addition to all other penalties, the penalty for failure to comply with this section shall be as provided in Chapter 29, Article 6.
","history":"(Acts 1981, No. 81-665, p. 1086, §5; Acts 1989, No. 89-691, p. 1358, §6; Acts 1989, No. 89-752, p. 1526, §3; Acts 1994, No. 94-622, p. 1162, §5.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38902,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38050,"codeId":18748,"versionId":14882,"parentId":18713,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-105","shortTitle":"Section 40-23-105","catchLine":"Applicability of Certain Title 40 Provisions.","title":"Section 40-23-105 Applicability of Certain Title 40 Provisions.","sectionRange":null,"content":"Except as herein otherwise provided, the tax herein shall be subject to all definitions, exceptions, exemptions, proceedings, requirements, rules, regulations, provisions, penalties, fines, punishments, deductions, and discounts in accordance with the provisions of Sections 40-23-1 through 40-23-36 and the assessment and refund procedures set out in Chapter 2A of this title.
","history":"(Acts 1981, No. 81-665, p. 1086, §6; Acts 1992, No. 92-186, p. 349, §68.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38903,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38051,"codeId":18759,"versionId":14889,"parentId":18713,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-106","shortTitle":"Section 40-23-106","catchLine":"Reciprocity.","title":"Section 40-23-106 Reciprocity.","sectionRange":null,"content":"If a sales or use tax equal to or in excess of the amount of the tax imposed by this article is paid to another state under a requirement of the law of that state, the automotive vehicle, motorboat, truck trailer, semitrailer, or house trailer which is the subject of the tax when it is imported for use, storage, or consumption in this state shall not be subject to the use tax imposed by this article. If the amount of the tax paid to another state is less than that imposed by this article, then the difference shall be paid. However, no credit shall be allowed for taxes paid on any automotive vehicles, motorboats, truck trailers, semitrailers, or house trailers in any other state which does not extend credit for taxes paid on similar property in Alabama. The licensing official shall require proof of payment of tax in another state deemed necessary and proper.
","history":"(Acts 1981, No. 81-665, p. 1086, §7; Acts 1994, No. 94-622, p. 1162, §6.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38904,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38052,"codeId":18763,"versionId":14892,"parentId":18713,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-107","shortTitle":"Section 40-23-107","catchLine":"Fees.","title":"Section 40-23-107 Fees.","sectionRange":null,"content":"For making the collection of taxes levied under authority of this article, the licensing official shall be entitled to a fee in an amount equal to five percent of all revenue collected under this article each month. The fee shall be for the use of the licensing official. The fee shall be deducted from the tax collections each month and the remainder of the collections shall be remitted to the Department of Revenue. Notwithstanding the foregoing, the fee shall be disallowed unless the collections are remitted to the Department of Revenue within the time allowed by law. In all counties where the licensing official is paid on a salary instead of a fee basis, all fees allowed under the terms of this section to be paid to the licensing official shall be paid, by the licensing official, into the county treasury, or to the official performing the duties of county treasurer.
","history":"(Acts 1981, No. 81-665, p. 1086, §8; Acts 1994, No. 94-622, p. 1162, §7.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38905,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38053,"codeId":18766,"versionId":24170,"parentId":18713,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-108","shortTitle":"Section 40-23-108","catchLine":"Disposition of Funds.","title":"Section 40-23-108 Disposition of Funds.","sectionRange":null,"content":"The licensing official shall, after the deduction of the fee as provided in Section 40-23-107, remit the revenue collected hereunder to the Department of Revenue for deposit as follows:
Of the total two cents ($.02) tax on each dollar of sale, 58% of the total tax generated shall be deposited to the credit of the Education Trust Fund; and 42% of the total tax generated shall be deposited to the credit of the State General Fund. Provided, however, of the total of those funds derived from the state sales and use taxes collected on motorboats, 50 percent shall be paid to the State General Fund and 50 percent to the Education Trust Fund.
","history":"(Acts 1981, No. 81-665, p. 1086, §9; Acts 1988, 1st Ex. Sess., No. 88-867, p. 265, §6; Acts 1994, No. 94-622, p. 1162, §8; Act 99-650, 2nd Sp. Sess., p. 96, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38906,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38054,"codeId":18772,"versionId":14897,"parentId":18713,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-110","shortTitle":"Section 40-23-110","catchLine":"Penalty for Failure to Pay Tax.","title":"Section 40-23-110 Penalty for Failure to Pay Tax.","sectionRange":null,"content":"Any person failing to pay the tax levied under the provisions of this article shall be guilty of a Class C misdemeanor and upon conviction thereof, be punished as prescribed by law for such offense.
","history":"(Acts 1981, No. 81-665, p. 1086, §11.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38907,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38055,"codeId":18776,"versionId":14901,"parentId":18713,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-111","shortTitle":"Section 40-23-111","catchLine":"Authority to Adopt and Enforce Rules and Regulations.","title":"Section 40-23-111 Authority to Adopt and Enforce Rules and Regulations.","sectionRange":null,"content":"The Department of Revenue is authorized to adopt, promulgate, and enforce reasonable rules and regulations relating to the administration and enforcement of Article 3, commencing with Section 40-23-100, Chapter 23, Title 40, not in conflict with the specific provisions hereof.
","history":"(Acts 1994, No. 94-622, p. 1162, §10.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38908,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38056,"codeId":18790,"versionId":null,"parentId":18329,"effectiveDate":null,"supersessionDate":null,"type":"Article","displayId":"4","shortTitle":"Article 4","catchLine":"Violation of Tax Exempt Privilege.","title":"Article 4 Violation of Tax Exempt Privilege.","sectionRange":"§40-23-120 to §40-23-121","content":null,"history":null,"numChildren":2,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":38909,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38057,"codeId":18791,"versionId":14911,"parentId":18790,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-120","shortTitle":"Section 40-23-120","catchLine":"Good Faith Violations.","title":"Section 40-23-120 Good Faith Violations.","sectionRange":null,"content":"Any law to the contrary notwithstanding, any retailer, who relies in good faith on any state sales tax exemption number that has been authorized by the state Revenue Department and the exemption claim has been made on a form provided or approved for use by the Revenue Department, when a state tax exemption number holder violates the tax exempt privilege or uses such number illegally, shall not subsequently be liable to the state Revenue Department or others for the sales tax on purchases.
","history":"(Acts 1989, No. 89-690, p. 1357, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38910,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38058,"codeId":18796,"versionId":14915,"parentId":18790,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-121","shortTitle":"Section 40-23-121","catchLine":"Authorization to Collect or Recover Sales Taxes Due on Illegal Purchases.","title":"Section 40-23-121 Authorization to Collect or Recover Sales Taxes Due on Illegal Purchases.","sectionRange":null,"content":"The state Revenue Department is authorized to use its powers and responsibilities, in accord with the general laws of this state, to collect or recover any sales taxes due on purchases made illegally with state tax exempt numbers from the party or parties using such number and the person or persons who benefited from such illegal use of the tax exempt number, if the retailers acted in good faith and reasonably believe the purchase was legal.
","history":"(Acts 1989, No. 89-690, p. 1357, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38911,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38059,"codeId":18803,"versionId":null,"parentId":18329,"effectiveDate":null,"supersessionDate":null,"type":"Article","displayId":"5","shortTitle":"Article 5","catchLine":"Taxes on Sale of Gasoline and Motor Fuel.","title":"Article 5 Taxes on Sale of Gasoline and Motor Fuel.","sectionRange":"§40-23-130","content":null,"history":null,"numChildren":1,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":38912,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38060,"codeId":18805,"versionId":14922,"parentId":18803,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-130","shortTitle":"Section 40-23-130","catchLine":"Calculation of Municipal or County Gross Receipts Tax.","title":"Section 40-23-130 Calculation of Municipal or County Gross Receipts Tax.","sectionRange":null,"content":"Any gross receipts tax imposed by a municipality or county on the sale of gasoline and motor fuel shall be based on the gross receipts from the sale of gasoline and motor fuel minus any taxes imposed on the sale of gasoline and motor fuel by the state, federal, or local governments.
","history":"(Acts 1994, 1st Ex. Sess., No. 94-792, p. 98, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38913,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38061,"codeId":30744,"versionId":null,"parentId":18329,"effectiveDate":null,"supersessionDate":null,"type":"Article","displayId":"6","shortTitle":"Article 6","catchLine":"Tax on Remote Sellers.","title":"Article 6 Tax on Remote Sellers.","sectionRange":"§40-23-150 to §40-23-205","content":null,"history":null,"numChildren":4,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":38914,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38062,"codeId":30745,"versionId":null,"parentId":30744,"effectiveDate":null,"supersessionDate":null,"type":"Division","displayId":"1","shortTitle":"Division 1","catchLine":"Application and Implementation.","title":"Division 1 Application and Implementation.","sectionRange":"§40-23-150","content":null,"history":null,"numChildren":1,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":38915,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38063,"codeId":30746,"versionId":25528,"parentId":30745,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-150","shortTitle":"Section 40-23-150","catchLine":"Education Trust Fund Rainy Day Account.","title":"Section 40-23-150 Education Trust Fund Rainy Day Account.","sectionRange":null,"content":"Repealed by Act 2012-599, 1st Sp. Sess., §2, effective October 1, 2012.
","history":"(Act 2001-1122, 4th Sp. Sess., p. 1190, §§1-3.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38916,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38064,"codeId":30875,"versionId":null,"parentId":30744,"effectiveDate":null,"supersessionDate":null,"type":"Division","displayId":"2","shortTitle":"Division 2","catchLine":"Delegation to Discuss Sales and Use Tax Collection from Remote Sales.","title":"Division 2 Delegation to Discuss Sales and Use Tax Collection from Remote Sales.","sectionRange":"§40-23-170 to §40-23-174","content":null,"history":null,"numChildren":5,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":38917,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38065,"codeId":30876,"versionId":25608,"parentId":30875,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-170","shortTitle":"Section 40-23-170","catchLine":"Legislative Findings.","title":"Section 40-23-170 Legislative Findings.","sectionRange":null,"content":"The Legislature finds that the State of Alabama should participate in negotiations with other states to simplify and modernize tax administration in order to substantially reduce the burden of tax compliance for all sellers, to reduce the costs of the administration, and to provide a means by which sales and use taxes may be levied and collected from those remote sellers located outside of this state which deliver inside this state items sold through catalogs, Internet, and other means.
","history":"(Act 2002-418, p. 1068, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38918,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38066,"codeId":30877,"versionId":25609,"parentId":30875,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-171","shortTitle":"Section 40-23-171","catchLine":"Definitions.","title":"Section 40-23-171 Definitions.","sectionRange":null,"content":"As used in this division, the following terms shall have the following meanings:
(1) AGREEMENT. An interstate agreement for simplification and uniformity of taxation among member states in order to reduce the burden of tax compliance for sellers and for all types of commerce and to provide a means by which sales and use taxes may be collected from remote sellers.
(2) REMOTE SELLER. An individual, trust, estate, fiduciary, partnership, limited liability company, limited liability partnership, corporation, or other similar legal entity that sells tangible personal property or a service, but does not have nexus in this state.
(3) SALES AND USE TAXES. Sales and use taxes and gross receipts taxes in the nature of a sales tax imposed pursuant to Alabama law.
(4) STATE. A state of the United States and the District of Columbia.
","history":"(Act 2002-418, p. 1068, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38919,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38067,"codeId":30878,"versionId":25610,"parentId":30875,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-172","shortTitle":"Section 40-23-172","catchLine":"Delegates for Participation in Multistate Discussions.","title":"Section 40-23-172 Delegates for Participation in Multistate Discussions.","sectionRange":null,"content":"(a) There is created a delegation to participate in multistate discussions regarding the simplification and modernization of tax administration. Delegates shall be appointed as follows:
(1) One representative of municipal government appointed by the Alabama League of Municipalities.
(2) One representative of county government appointed by the Association of County Commissions of Alabama.
(3) The Commissioner of the Alabama Department of Revenue or his or her designee.
(4) One representative of the retail community appointed by the Alabama Retail Association.
(5) One representative of the accounting profession appointed by the Alabama Society of Certified Public Accountants.
(b) Delegates shall serve at the pleasure of the appointing authority. Delegates shall be reimbursed by the State of Alabama for all reasonable and necessary expenses in the discharge of their duties.
(c) Delegates shall, by majority vote of the membership, make recommendations to the Legislature and to the Governor.
(d) The delegation shall reflect the racial and ethnic diversity of the state.
","history":"(Act 2002-418, p. 1068, §3.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38920,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38068,"codeId":30879,"versionId":25611,"parentId":30875,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-173","shortTitle":"Section 40-23-173","catchLine":"Duties of Delegates; Agreement.","title":"Section 40-23-173 Duties of Delegates; Agreement.","sectionRange":null,"content":"(a) Delegates shall enter into multistate discussions on behalf of the State of Alabama to consider whether the state should enter into an agreement with one or more states to do the following:
(1) Simplify and modernize tax administration in order to substantially reduce the burden of tax compliance for sellers and for all types of commerce and to provide a means by which sales and use taxes may be collected from remote sellers.
(2) Establish requirements for multistate sellers.
(b) The agreement may provide a mechanism among the member states to establish and maintain a cooperative, simplified system for the application and administration of sales and use taxes from remote sellers under the duly adopted law of each state. No law of this state, nor the application thereof, may be declared invalid as to any person or circumstance on the ground that the provision or application is inconsistent with the agreement. No provision of this division, in whole or in part, invalidates or amends any provision of law in Alabama. Implementation of any condition of any agreement, whether adopted before, at, or after membership of this state in the agreement, must be made by law enacted by the Legislature of this state.
","history":"(Act 2002-418, p. 1068, §4.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38921,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38069,"codeId":30880,"versionId":34603,"parentId":30875,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-174","shortTitle":"Section 40-23-174","catchLine":"Distribution of Proceeds.","title":"Section 40-23-174 Distribution of Proceeds.","sectionRange":null,"content":"(a) Should the enactment of a national agreement for the collection of sales and use taxes from remote sellers establish a single national tax rate on such remote sales or should the agreement provide for the State of Alabama to establish a single statewide rate on such remote sales, the proceeds shall be distributed as follows:
(1) One-half of such proceeds shall be distributed to the State of Alabama of which 75% shall be deposited into the General Fund, and 25% shall be deposited into the Education Trust Fund.
(2) One-quarter shall be distributed to the governing body of the municipality in which the delivery is made, if the delivery is made into a municipality.
(3) The remainder shall be distributed to the county governing body in the county in which the delivery is made.
(b) The tax proceeds distributed to a municipality or county shall be expended by the governing body of the municipality or county as required and provided by law for other sales and use tax proceeds levied and collected by the county or municipality including any bonded indebtedness.
","history":"(Act 2002-418, p. 1068, §5; Act 2012-599, p. 1924, 1st Sp. Sess., §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38922,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38070,"codeId":31221,"versionId":null,"parentId":30744,"effectiveDate":null,"supersessionDate":null,"type":"Division","displayId":"3","shortTitle":"Division 3","catchLine":"Conditions for Remote Entity Nexus.","title":"Division 3 Conditions for Remote Entity Nexus.","sectionRange":"§40-23-190 to §40-23-199.3","content":null,"history":null,"numChildren":2,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":38923,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38071,"codeId":47151,"versionId":null,"parentId":31221,"effectiveDate":null,"supersessionDate":null,"type":"Part","displayId":"1","shortTitle":"Part 1","catchLine":"General Provisions.","title":"Part 1 General Provisions.","sectionRange":"§40-23-190","content":null,"history":null,"numChildren":1,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":38924,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38072,"codeId":31222,"versionId":42939,"parentId":47151,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-190","shortTitle":"Section 40-23-190","catchLine":"Conditions for Remote Entity Nexus.","title":"Section 40-23-190 Conditions for Remote Entity Nexus.","sectionRange":null,"content":"(a) An out-of-state vendor has substantial nexus with this state for the collection of both state and local use tax if:
(1) The out-of-state vendor and an in-state business maintaining one or more locations within this state are related parties; and
(2) The out-of-state vendor and the in-state business use an identical or substantially similar name, tradename, trademark, or goodwill, to develop, promote, or maintain sales, or the in-state business and the out-of-state vendor pay for each other’s services in whole or in part contingent upon the volume or value of sales, or the in-state business and the out-of-state vendor share a common business plan or substantially coordinate their business plans, or the in-state business provides services to, or that inure to the benefit of, the out-of-state business related to developing, promoting, or maintaining the in-state market.
(b) An out-of-state vendor that is an eligible seller participating in the Simplified Sellers Use Tax Remittance Program, as these terms are defined in Section 40-23-191, that establishes a substantial nexus in this state only through the acquisition of an in-state business and thereafter meets the provisions of subsection (a) may elect to satisfy the requirements to collect and remit tax for the out-of-state vendor’s Alabama sales by continued participation in the Simplified Sellers Use Tax Remittance Program.
(c) Two entities are related parties under this section if one of the entities meets at least one of the following tests with respect to the other entity:
(1) One or both entities is a corporation, and one entity and any party related to that entity in a manner that would require an attribution of stock from the corporation to the party or from the party to the corporation under the attribution rules of Section 318 of the Internal Revenue Code owns directly, indirectly, beneficially, or constructively at least 50 percent of the value of the corporation’s outstanding stock;
(2) One or both entities is a limited liability company, partnership, estate, or trust and any member, partner, or beneficiary, and the limited liability company, partnership, estate, or trust and its members, partners, or beneficiaries own directly, indirectly, beneficially, or constructively, in the aggregate, at least 50 percent of the profits, or capital, or stock, or value of the other entity or both entities; or
(3) An individual stockholder and the members of the stockholder’s family, as defined in Section 318 of the Internal Revenue Code, owns directly, indirectly, beneficially, or constructively, in the aggregate, at least 50 percent of the value of both entities’ outstanding stock.
","history":"(Act 2003-390, §1; Act 2018-539, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38925,"hierarchyLevel":5,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38073,"codeId":47152,"versionId":null,"parentId":31221,"effectiveDate":null,"supersessionDate":null,"type":"Part","displayId":"2","shortTitle":"Part 2","catchLine":"Simplified Seller Use Tax Remittance Act.","title":"Part 2 Simplified Seller Use Tax Remittance Act.","sectionRange":"§40-23-191 to §40-23-199.3","content":null,"history":null,"numChildren":13,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":38926,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38074,"codeId":47153,"versionId":43320,"parentId":47152,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-191","shortTitle":"Section 40-23-191","catchLine":"Short Title; Definitions.","title":"Section 40-23-191 Short Title; Definitions.","sectionRange":null,"content":"(a) This part shall be titled The Simplified Seller Use Tax Remittance Act.
(b) For the purpose of this part, the following terms shall have the respective meanings ascribed to them in this section:
(1) DEPARTMENT. The Alabama Department of Revenue.
(2) ELIGIBLE SELLER. A seller that sells tangible personal property or a service, but does not have a physical presence in this state or is not otherwise required to collect and remit state and local sales or use tax for sales delivered into the state. The seller shall remain eligible for participation in the Simplified Use Tax Remittance Program unless the seller establishes a presence through a physical business address for the purpose of making in-state retail sales within the State of Alabama or becomes otherwise required to collect and remit sales or use tax pursuant to Section 40-23-190 through an affiliate making retail sales at a physical business address in Alabama. The term also includes a marketplace facilitator as defined in Section 40-23-199.2(a)(2) for all sales made through the marketplace facilitator’s marketplace by or on behalf of a marketplace seller.
(3) LOCALITY. A county, municipality, or other local governmental taxing authority which levies a local sales and/or use tax.
(4) SELLER. An individual, trust, estate, fiduciary, partnership, limited liability company, limited liability partnership, corporation, or other legal entity.
(5) SIMPLIFIED SELLERS USE TAX. The tax to be collected, reported, and remitted by eligible sellers who are participating in the program pursuant to requirements and procedures established pursuant to this part.
(6) SIMPLIFIED USE TAX REMITTANCE PROGRAM or PROGRAM. The program established in this part to provide a mechanism for eligible sellers to collect, report, and remit the simplified sellers use tax established pursuant to this part.
(7) STATE. The State of Alabama.
","history":"(Act 2015-448, p. 1443, §1; Act 2016-110, §1; Act 2017-82, §2; Act 2018-539, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38927,"hierarchyLevel":5,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38075,"codeId":47154,"versionId":39248,"parentId":47152,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-192","shortTitle":"Section 40-23-192","catchLine":"Simplified Sellers Use Tax Remittance Program.","title":"Section 40-23-192 Simplified Sellers Use Tax Remittance Program.","sectionRange":null,"content":"(a) There is hereby established The Simplified Sellers Use Tax Remittance Program designed to allow an eligible seller who participates in the program to collect, report, and remit the simplified sellers use tax authorized herein in lieu of the sales or use taxes otherwise due by or on behalf of Alabama customers who have purchased items from the eligible seller that were shipped or otherwise delivered into Alabama by the eligible seller. Participation in the program shall be by election of the eligible seller and only those eligible sellers accepted into the program as set out herein shall collect and remit the simplified sellers use tax. Participation in the program shall not be construed as subjecting an eligible seller to franchise, income, occupation, or any other type of taxes or licensing requirements levied or imposed by the state of Alabama or any locality.
(b) The program shall be administered by the department, which pursuant to this part, shall develop and make available to the eligible seller an easily accessible, online system in which to collect, report, and remit the simplified sellers use tax. Participants in the program shall be required to collect, report, and remit the simplified sellers use tax for all sales delivered into the state as long as remaining a participant in the program. Eligible sellers may continue in the program as long as they comply with all provisions of this part and procedures adopted by the department for participation in the program.
(c) In order to participate in the program, an eligible seller shall make application with the department on a form designed by the department for that purpose. The application shall require, at a minimum, that the eligible seller:
(1) Certifies that he or she is an eligible seller as defined herein.
(2) Agrees to collect, report, and remit the simplified sellers use tax for all sales delivered into the state as long as he or she remains a participant in the program.
(3) Agrees to provide the department with information related to sales to Alabama customers as required by this part or requested by the department.
(4) Agrees to comply with all program reporting requirements established under program procedures.
Any applicant who falsely certifies on his or her application that he or she is an eligible seller with the State of Alabama shall be subject to the negligence and/or fraud penalties under procedures found in Section 40-2A-11.
(d) The department shall review all applications for participation, and where an applicant is determined to satisfy requirements to participate in the program, shall establish a simplified sellers use tax account for the eligible seller which will allow the eligible seller to report and remit all simplified sellers use tax collected pursuant to this part.
(e) A participating eligible seller shall be removed from the program if:
(1) He or she substantially fails to collect, report, and remit simplified sellers use taxes.
(2) He or she fails to submit required reports on a timely basis.
(3) Upon a determination that the seller is no longer an eligible seller, as defined by this part.
(4) There is any other finding by the department that the participant is not in compliance with the terms authorizing participation in the program.
Any participant who fails to report that he or she is no longer eligible for participation in the program or falsely certifies on any report that he or she is eligible shall be subject to the negligence and/or fraud penalties under procedures found in Section 40-2A-11. Removal from the program or assessment of the fraud or negligence penalty shall be subject to appeal rights and procedures established in this title.
","history":"(Act 2015-448, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38928,"hierarchyLevel":5,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38076,"codeId":47155,"versionId":44453,"parentId":47152,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-193","shortTitle":"Section 40-23-193","catchLine":"Collection and Remittance of Simplified Sellers Use Tax; Reporting; Statement.","title":"Section 40-23-193 Collection and Remittance of Simplified Sellers Use Tax; Reporting; Statement.","sectionRange":null,"content":"(a) The simplified sellers use tax due under the program is eight percent of the sales price on any tangible personal property sold or delivered into Alabama by an eligible seller participating in the program. The collection and remittance of simplified sellers use tax relieves the eligible seller and the purchaser from any additional state or local sales and use taxes on the transaction.
(b) The simplified sellers use tax collected by the eligible seller, at the rate of eight percent, shall be electronically reported in the manner prescribed by the department on or before the 20th day of the month next succeeding the month in which the tax accrues. The eligible seller shall remit the tax at the required rate or the amount of the tax collected, whichever is greater. The required monthly reporting from the eligible seller shall only include statewide totals of the simplified sellers use taxes collected and remitted, and shall not require information related to the location of purchasers or amount of sales into a specific locality. The department may not require an eligible seller to report and remit the simplified sellers use tax more frequently than is required for other sellers.
(c) No eligible seller shall be required to collect the tax at a rate greater than eight percent, regardless of the combined actual tax rates that may otherwise be applicable. Additionally, no sales for which the simplified sellers use tax is collected shall be subject to any additional sales or use tax from any locality levying a sales or use tax with respect to the purchase or use of the property, regardless of the actual tax rate that might have otherwise been applicable.
(d) The participating eligible seller shall collect the tax on all purchases delivered into Alabama unless the purchaser furnishes the eligible seller with a valid exemption certificate, sales tax license, or direct pay permit issued by the department. The eligible seller shall retain all exemption certificates, sales tax licenses, or direct pay permits in its files, or in such other manner as directed by the department.
(e) The eligible seller shall provide the purchaser with a statement or invoice showing that the simplified sellers use tax was collected and is to be remitted on the purchaser’s behalf. The statement shall be in a manner prescribed by the department.
(f) The simplified sellers use tax levied under this section shall not be collected and remitted in lieu of the sales and use tax collected by a licensing official pursuant to Section 40-23-104.
","history":"(Act 2015-448, p. 1443, §1; Act 2017-82, §2; Act 2019-382, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38929,"hierarchyLevel":5,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38077,"codeId":47156,"versionId":42940,"parentId":47152,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-194","shortTitle":"Section 40-23-194","catchLine":"Discount.","title":"Section 40-23-194 Discount.","sectionRange":null,"content":"Eligible sellers may deduct and retain a discount equal to two percent of the simplified sellers use tax properly collected and then remitted to the department in a timely manner, provided that for tax periods beginning on or after January 1, 2019, the allowance for discount shall not apply to any taxes collected and then remitted which are in excess of four hundred thousand dollars ($400,000). The department is authorized to prescribe rules for administering the discount. No discount shall be allowed for any taxes which are not timely reported and remitted to the department pursuant to program procedures.
","history":"(Act 2015-448, p. 1443, §1; Act 2018-539, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38930,"hierarchyLevel":5,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38078,"codeId":47157,"versionId":40882,"parentId":47152,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-195","shortTitle":"Section 40-23-195","catchLine":"Rulemaking Authority; Recordkeeping.","title":"Section 40-23-195 Rulemaking Authority; Recordkeeping.","sectionRange":null,"content":"(a) The department may adopt, promulgate, and enforce reasonable rules and regulations related to the implementation, administration, and participation in the program. The department shall have exclusive responsibility for reviewing and accepting applications for participation and for the administration, return processing, and review of the eligibility of sellers participating in the program. Eligible sellers participating in the program shall not be subject to audit or review by any Alabama locality. Eligible sellers shall maintain records of all sales delivered into Alabama, including copies of invoices showing the purchaser, address, purchase amount, and simplified sellers use tax collected. Such records shall be made available for review and inspection upon request by the department.
(b) The department may disclose the name of eligible sellers, the effective date the eligible seller began participating in the program and, if applicable, the cease date the eligible seller ceased to participate in the program.
","history":"(Act 2015-448, p. 1443, §1; Act 2017-82, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38931,"hierarchyLevel":5,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38079,"codeId":47158,"versionId":39249,"parentId":47152,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-196","shortTitle":"Section 40-23-196","catchLine":"Refund or Credit of Excess Taxes Paid.","title":"Section 40-23-196 Refund or Credit of Excess Taxes Paid.","sectionRange":null,"content":"(a) Any taxpayer who pays a simplified sellers use tax through this program that is higher than the actual state and local sales or use tax levied in the locality where the sale was delivered may file for a refund or credit of the excess amount paid to the eligible seller participating in the program. A business taxpayer who has a registered consumer use tax account with the department may claim credit for the overpayment of simplified use tax on their consumer use tax return in a manner prescribed by the department. All other taxpayers may file a petition for refund in the manner prescribed by the department. The petition for refund may only be filed once per year. In the event the amount due to be refunded in a year is less than twenty-five ($25.00) dollars, payment of the refund may be deferred by the department and combined with amounts due to be paid pursuant to subsequent annual refund petitions for a period of up to three years.
(b) Any taxpayer seeking a refund or credit of excess taxes paid to an eligible seller participating in the program shall maintain records documenting the amount of simplified sellers use tax paid. Refund or credit requests shall require proper documentation of amounts paid by the taxpayer and shall be submitted to the department with the petition for refund.
(c) Notwithstanding any other provision of law, interest due on any refund of taxes paid directly to the department under this division shall be paid beginning 90 days after the receipt date of the properly documented refund petition with interest accruing beginning on the 91st day.
","history":"(Act 2015-448, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38932,"hierarchyLevel":5,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38080,"codeId":47159,"versionId":42941,"parentId":47152,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-197","shortTitle":"Section 40-23-197","catchLine":"Disposition of Funds.","title":"Section 40-23-197 Disposition of Funds.","sectionRange":null,"content":"(a) The proceeds of simplified sellers use tax paid pursuant to this part shall be appropriated to the department, which shall retain the amount necessary to fund the administrative costs of implementing and operating the program and to cover the amounts paid for refunds authorized in Section 40-23-196. The balance of the amounts collected shall be distributed as follows:
(1) Fifty percent to the State Treasury and allocated 75 percent to the General Fund and 25 percent to the Education Trust Fund.
(2) Twenty-five percent to each county in the state on a prorated basis according to population as determined in the most recent federal census prior to the distribution.
(3) Twenty-five percent of funds to be distributed to each municipality in the state on a prorated basis according to population as determined in the most recent federal census prior to the distribution.
(b) Effective for tax periods beginning on or after January 1, 2019, the net proceeds after the distribution provided in subdivision (1) of subsection (a) shall be distributed 60 percent to each municipality in the state on a basis of the ratio of the population of each municipality to the total population of all municipalities in the state as determined in the most recent federal census prior to distribution and 40 percent to each county in the state, and deposited into the general fund of the respective county commission, on a basis of the ratio of the population of each county to the total population of all counties in the state as determined in the most recent federal census prior to the distribution.
(c) The distribution of the proceeds from the simplified sellers use tax paid to counties and municipalities shall occur quarterly in a manner prescribed by the department.
","history":"(Act 2015-448, p. 1443, §1; Act 2018-539, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38933,"hierarchyLevel":5,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38081,"codeId":48865,"versionId":41114,"parentId":47152,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-197.1","shortTitle":"Section 40-23-197.1","catchLine":"Distributions of Simplified Sellers Use Tax Proceeds.","title":"Section 40-23-197.1 Distributions of Simplified Sellers Use Tax Proceeds.","sectionRange":null,"content":"Notwithstanding the provisions of Section 40-23-197, the department may initiate monthly distributions of the proceeds from the simplified sellers use tax paid to counties and municipalities.
","history":"(Act 2017-82, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38934,"hierarchyLevel":5,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38082,"codeId":47160,"versionId":40245,"parentId":47152,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-198","shortTitle":"Section 40-23-198","catchLine":"Applicability of Part 2.","title":"Section 40-23-198 Applicability of Part 2.","sectionRange":null,"content":"In the event that the enactment of federal legislation removes current federal limitations on states’ ability to enforce their sales and use tax jurisdiction against businesses that lack an instate physical presence, the provisions of this part shall be inapplicable as to any eligible seller who is not registered with the department as a participant in the program at least six months prior to the date of such change in law. In such event, the provisions of this part will continue to apply to any eligible seller who has been approved by the department as a participant in the program at least six months prior to the change in law and to any taxpayer who has paid or pays the simplified sellers use tax authorized under this part provided the eligible seller continues to collect, report, and remit the simplified sellers use tax and otherwise complies with all procedures and requirements of the program. Eligible sellers participating in the program pursuant to this subsection may continue to receive a discount of two percent (2%) on all simplified sellers use taxes properly remitted under the provisions of this part and shall continue to report sales under the conditions set out in Section 40-23-193.
","history":"(Act 2015-448, §1; Act 2016-110, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38935,"hierarchyLevel":5,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38083,"codeId":47161,"versionId":43540,"parentId":47152,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-199","shortTitle":"Section 40-23-199","catchLine":"Amnesty for Certain Uncollected Remote Use Tax.","title":"Section 40-23-199 Amnesty for Certain Uncollected Remote Use Tax.","sectionRange":null,"content":"(a) Subject to the limitations set out in this section, an eligible seller participating in the program shall be granted amnesty for any uncollected remote use tax that may have been due on sales made to purchasers in the state for all periods preceding October 1, 2019.
(1) The amnesty precludes assessment for uncollected simplified sellers use tax together with any penalty or interest for sales made during a period prior to October 1, 2019.
(2) The amnesty provided in this section shall be granted to any eligible seller who applies to participate in the program following acceptance into the program by the department.
(3) Amnesty is not available to an eligible seller with respect to any matter or matters for which the eligible seller has received notice of the commencement of an audit and the audit is not yet finally resolved, including any related administrative and judicial processes.
(4) Amnesty is not available for any simplified sellers use tax already paid or remitted to the state or for taxes collected by the eligible seller.
(5) Amnesty is fully effective, absent the eligible seller’s fraud or intentional misrepresentation of a material fact, as long as the eligible seller continues his or her participation in the program and continues to collect, report, and remit applicable simplified sellers use tax for a period of at least 36 months.
(6) Amnesty is applicable only to simplified sellers use tax due from an eligible seller in his or her capacity as an eligible seller and not to remote use taxes due from a seller in his or her capacity as a buyer.
(b) No class action may be brought against an eligible seller in any court of this state on behalf of customers for an overpayment of simplified sellers use tax collected and remitted on sales made by the eligible seller.
","history":"(Act 2015-448, p. 1443, §1; Act 2019-382, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38936,"hierarchyLevel":5,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38084,"codeId":51099,"versionId":43321,"parentId":47152,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-199.1","shortTitle":"Section 40-23-199.1","catchLine":"Amnesty for Certain Uncollected Remote Use Tax.","title":"Section 40-23-199.1 Amnesty for Certain Uncollected Remote Use Tax.","sectionRange":null,"content":"The Simplified Sellers Use Tax Remittance Program may not be used to report sales tax obligations subject to the sales tax imposed by Chapter 23 of this title or any local law or municipal ordinance or any county ordinance enacted pursuant to Section 40-12-4 imposing a sales tax for those sales of tangible personal property which are sold at a retail location in this state.
","history":"(Act 2018-539, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38937,"hierarchyLevel":5,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38085,"codeId":51100,"versionId":43322,"parentId":47152,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-199.2","shortTitle":"Section 40-23-199.2","catchLine":"Marketplace Facilitators.","title":"Section 40-23-199.2 Marketplace Facilitators.","sectionRange":null,"content":"(a) For the purpose of Act 2018-539, the following terms shall have the respective meanings ascribed to them:
(1) DEPARTMENT. The Alabama Department of Revenue.
(2) MARKETPLACE FACILITATOR. A person that contracts with marketplace sellers to facilitate for a consideration, regardless of whether deducted as fees from the transaction, the sale of the marketplace seller’s products through a physical or electronic marketplace operated by a person, and engages:
a. Either directly or indirectly, through one or more affiliated persons in any of the following:
1. Transmitting or otherwise communicating the offer or acceptance between the purchaser and marketplace seller;
2. Owning or operating the infrastructure, electronic or physical, or technology that brings purchasers and marketplace sellers together;
3. Providing a virtual currency that purchasers are allowed or required to use to purchase products from the marketplace seller; or
4. Software development or research and development activities related to any of the activities described in paragraph b. if such activities are directly related to a physical or electronic marketplace operated by a person or an affiliated person, and
b. In any of the following activities with respect to the marketplace seller’s products:
1. Payment processing services;
2. Fulfillment or storage services;
3. Listing products for sale;
4. Setting prices;
5. Branding sales as those of the marketplace facilitator;
6. Order taking;
7. Advertising or promotion; or
8. Providing customer service or accepting or assisting with returns or exchanges.
(3) MARKETPLACE SELLER. A seller that is not a related party, as prescribed in Section 40-23-190(c), to a marketplace facilitator and that makes sales through any physical or electronic marketplaces operated by a marketplace facilitator.
(4) PERSON. As defined in Section 40-23-1 (a)(1).
(5) PURCHASER. A person who purchases or contracts to purchase tangible personal property as defined in Section 40-12-220.
(6) QUALIFYING AMOUNT. Two hundred and fifty thousand dollars ($250,000) or an amount as otherwise prescribed by the department.
(7) RETAIL SALE. As defined in Section 40-23-1(a)(10), other than sales of motor vehicles as defined in Section 40-12-240.
(8) SELLER. An individual, trust, estate, fiduciary, partnership, limited liability company, limited liability partnership, corporation, or other legal entity.
(9) SIMPLIFIED SELLERS USE TAX. The tax as levied under Section 40-23-193.
(10) STATE. The State of Alabama.
(b) By no later than January 1, 2019, marketplace facilitators must either register with the department to collect and remit simplified sellers use tax on retail sales made through the marketplace facilitator’s marketplace by or on behalf of a marketplace seller that are delivered in Alabama, whether by the marketplace facilitator or another person, or report such retail sales and provide customer notifications pursuant to subsection (m). This subsection shall apply to any marketplace facilitator that has more than the qualifying amount in retail sales in Alabama for the preceding 12 months. Such retail sales shall include those made directly by the marketplace facilitator and shall also include those retail sales made by marketplace sellers through the marketplace facilitator’s marketplace. The collection and reporting requirements of this subsection shall not apply to retail sales other than those made through a marketplace facilitator’s marketplace.
(c) Marketplace facilitators that collect simplified sellers use tax under this section shall report and remit the tax in accordance with the provisions of Section 40-23-193 and shall maintain records of all sales delivered to a location in Alabama, including copies of invoices showing the purchaser, address, purchase amount, and simplified sellers use tax collected. Such records shall be made available for review and inspection upon request by the department.
(d) Marketplace facilitators who properly collect and then remit to the department in a timely manner simplified sellers use tax on sales in accordance with the provisions of this section by or on behalf of marketplace sellers shall be eligible for the discount provided under Section 40-23-194.
(e) The collection and remittance of simplified sellers use tax relieves the marketplace facilitator, the marketplace seller, and the purchaser from any additional state or local sales and use taxes on the transactions for which simplified sellers use tax was collected and remitted.
(f) Marketplace facilitators that collect simplified sellers use tax shall not be subject to audit or review by any Alabama locality for simplified sellers use tax. Sales by marketplace sellers for which simplified sellers use tax has been collected shall not be subject to audit or review by an Alabama locality for simplified sellers use tax. This exclusion shall not preclude an Alabama locality from auditing or reviewing any other sales by a marketplace seller for which sales or use tax would be due.
(g) Marketplace sellers for whom marketplace facilitators collect and remit simplified sellers use tax in accordance with the provisions of this section on all sales made by or on behalf of the marketplace seller that are delivered in Alabama shall be granted the continued participation and amnesty protections provided for eligible sellers under Sections 40-23-198 and 40-23-199.
(h) The marketplace facilitator shall provide the purchaser with a statement or invoice showing that the simplified sellers use tax was collected and shall be remitted on the purchaser’s behalf. The statement shall be in a manner prescribed by the department.
(i) No class action may be brought against a marketplace facilitator in any court of this state on behalf of customers for an overpayment of simplified sellers use tax collected and remitted on sales facilitated by the marketplace facilitator.
(j) Any taxpayer who remits simplified sellers use tax pursuant to this section shall be entitled to refunds or credits to the same extent and in the same manner provided for in Section 40-23-196 for taxes collected and remitted through the Simplified Sellers Use Tax Remittance Program.
(k) Marketplace facilitators shall be subject to the penalty provisions and procedures of Section 40-2A-11 and reporting requirements of Section 40-2-11(7)(b).
(l) The distribution of simplified sellers use tax remitted by marketplace facilitators shall be made in accordance with Sections 40-23-197 and 40-23-197.1.
(m) Effective January 1, 2019, any marketplace facilitator who does not collect and remit sales, use, or simplified sellers use tax on Alabama retail sale transactions of qualifying amounts shall be required to report such retail sales and provide customer notifications, within constitutional limitations, pursuant to Section 40-2-11(7)(b) and rules promulgated thereunder.
(n) The department may adopt, promulgate, and enforce reasonable rules and regulations for the administration and enforcement of Act 2018-539.
","history":"(Act 2018-539, §3.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38938,"hierarchyLevel":5,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38086,"codeId":51101,"versionId":43323,"parentId":47152,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-199.3","shortTitle":"Section 40-23-199.3","catchLine":"Online Application Process.","title":"Section 40-23-199.3 Online Application Process.","sectionRange":null,"content":"By no later than January 1, 2019, the department shall initiate an online application process to simplify refunds requested pursuant to Section 40-23-196.
","history":"(Act 2018-539, §4.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38939,"hierarchyLevel":5,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38087,"codeId":41419,"versionId":null,"parentId":30744,"effectiveDate":null,"supersessionDate":null,"type":"Division","displayId":"4","shortTitle":"Division 4","catchLine":"Alabama Streamlined Sales and Use Tax Commission.","title":"Division 4 Alabama Streamlined Sales and Use Tax Commission.","sectionRange":"§40-23-200 to §40-23-205","content":null,"history":null,"numChildren":6,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":38940,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38088,"codeId":41420,"versionId":33747,"parentId":41419,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-200","shortTitle":"Section 40-23-200","catchLine":"Definitions.","title":"Section 40-23-200 Definitions.","sectionRange":null,"content":"For purposes of this division, the following words or phrases shall have the following meanings:
(1) AGREEMENT. The Streamlined Sales and Use Tax Agreement.
(2) COMMISSION. The Alabama Streamlined Sales and Use Tax Commission created in this division to develop, implement, and administer programs necessary to come into compliance with the provisions of the Streamlined Sales and Use Tax Agreement.
(3) COMMISSIONER. The Commissioner of the Department of Revenue.
(4) DEPARTMENT. The Department of Revenue.
(5) SINGLE ENTITY ADMINISTRATION. A program to provide state-level administration of state and local jurisdiction sales and use tax in compliance with the provisions of the Streamlined Sales and Use Tax Agreement.
(6) STREAMLINED SALES AND USE TAX AGREEMENT. The multi-state agreement by that name or any subsequent name the purpose of which is to simplify and modernize sales and use tax administration in member states in order to reduce the burden of tax compliance, as in effect from time to time.
","history":"(Act 2011-563, p. 1071, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38941,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38089,"codeId":41421,"versionId":33748,"parentId":41419,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-201","shortTitle":"Section 40-23-201","catchLine":"Creation; Composition; Meetings.","title":"Section 40-23-201 Creation; Composition; Meetings.","sectionRange":null,"content":"(a) There is hereby established the Alabama Streamlined Sales and Use Tax Commission, created to identify, develop, implement, and administer the procedures and programs the State of Alabama would need to come into compliance with the Streamlined Sales and Use Tax Agreement in the event that federal legislation implementing the agreement or the general concepts of the agreement, which includes a requirement that remote sellers collect and remit sales and use taxes to member states, becomes law. The recommendations of the commission, if ratified by the Legislature pursuant to this division, shall not be implemented until and unless federal legislation adopting the Streamlined Sales and Use Tax Agreement becomes law.
(b) The commission shall be composed of 10 members, appointed as follows:
(1) Two representatives of municipal government, who shall be municipal employees or officials, appointed by the Alabama League of Municipalities.
(2) Two representatives of county government, who shall be county employees or officials, appointed by the Association of County Commissions of Alabama.
(3) Four employees of the Department of Revenue appointed by the Commissioner of the Department of Revenue.
(4) One representative of the retail community, appointed by the Alabama Retail Association.
(5) One representative of the business community, appointed by the Business Council of Alabama.
(c) All appointments to the commission shall be made before August 8, 2011, and each member of the commission shall serve at the pleasure of his or her appointing authority. Commission members shall receive no additional compensation for service on the commission, but shall be reimbursed by the State of Alabama for expenses in accordance with state law and travel policy regarding reimbursement for state employees’ travel related to their official work duties. The department shall provide administrative support necessary for the commission to carry out its duties.
(d) The commission, in all respects, shall be subject to the Alabama Open Meetings Act, Title 36, Chapter 25A. The organizational meeting of the commission shall take place by September 7, 2011. The commissioner of the department or his or her designee shall call the organizational meeting and serve as chair until the election of a chair as provided in this division. At the organizational meeting, the commission shall elect a chair and vice chair, who shall serve at the pleasure of the commission. The vice chair shall serve as acting chair whenever the chair is unable to preside at a meeting of the commission. A quorum for all meetings of the commission shall consist of seven members. If a quorum is not present at the beginning of any meeting, the members present shall have the authority to establish an alternate meeting date. A minimum of seven affirmative votes of the members of the commission shall be required for approval of any matter considered by the commission.
(e) The membership of the commission shall be inclusive and reflect the racial, gender, geographic, urban/rural, and economic diversity of the state.
","history":"(Act 2011-563, p. 1071, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38942,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38090,"codeId":41422,"versionId":33749,"parentId":41419,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-202","shortTitle":"Section 40-23-202","catchLine":"Duties.","title":"Section 40-23-202 Duties.","sectionRange":null,"content":"The duties of the commission shall include identification and development of each of the following as necessary for compliance with the Streamlined Sales and Use Tax Agreement:
(1) The development of a system for single entity administration of state and local tax collection and distribution.
(2) The development of a system designed to provide proper notice of changes in state or local sales and use taxes or rates to taxpayers and the single entity administrator.
(3) The development of a system designed to provide proper implementation of changes in state or local sales and use taxes or rates.
(4) The development of a system providing for taxpayer audits by persons or entities other than the single entity administrator as authorized by the agreement.
(5) The development of a database of all state and local sales and use tax rates.
(6) Any other systems, programs, or policies the commission determines are required for compliance with the agreement.
","history":"(Act 2011-563, p. 1071, §3.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38943,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38091,"codeId":41423,"versionId":33750,"parentId":41419,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-203","shortTitle":"Section 40-23-203","catchLine":"Report; Implementation and Administration of Recommendations.","title":"Section 40-23-203 Report; Implementation and Administration of Recommendations.","sectionRange":null,"content":"(a) The commission shall make a preliminary written report of its recommended implementation plan regarding necessary systems and programs within three months of the initial meeting of the commission. The preliminary report approved by the commission shall be distributed for comment to the department, all Alabama counties and municipalities, the Business Council of Alabama, and the Alabama Retail Association. The report shall also be posted on the website of the Department of Revenue at all times during the comment period with information about how persons or entities can provide comment to the commission. Any comments from persons, entities, and organizations shall be submitted in writing to the commission within 45 days of the date distributed and posted. The commission shall review all written comments and make changes to its preliminary report as it deems appropriate.
(b) The commission shall make and file with the Legislature a final written report of its recommended implementation and administrative supervision of needed systems, programs, and procedures necessary to bring the state into compliance with the agreement no later than the fifth legislative day of the 2012 Regular Session of the Legislature. The report shall include proposed plans and estimated costs for implementation of the systems identified and developed pursuant to Section 40-23-202.
(c) If ratified and approved by the Legislative Council, the recommendations of the commission shall be implemented and administered only in the event that federal legislation adopting the Streamline Sales and Use Tax Agreement or the general concepts of the agreement which include a requirement that remote sellers collect and remit sales and use taxes to member states, becomes law.
","history":"(Act 2011-563, p. 1071, §4.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38944,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38092,"codeId":41424,"versionId":33751,"parentId":41419,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-204","shortTitle":"Section 40-23-204","catchLine":"Recommended Changes in Existing Tax Laws.","title":"Section 40-23-204 Recommended Changes in Existing Tax Laws.","sectionRange":null,"content":"(a) In addition to the duties set out in Section 40-23-202, the commission shall research Alabama’s existing tax laws to identify what changes in existing law will be necessary in order to bring Alabama in compliance with the agreement in the event that federal legislation adopting the agreement becomes law. The commissioner of the department, or his or her designee, shall assist the commission as necessary in carrying out this function, and once the commission’s research is completed, shall assist the commission in drafting legislation proposing the changes it identifies as necessary to bring the state into compliance with the agreement.
(b) The commission shall make preliminary recommendations regarding necessary changes in Alabama’s existing tax laws within six months of filing the written report required in subsection (b) of Section 40-23-203. The preliminary recommendations approved by the commission shall be distributed for comment to the department, the Association of County Commissions of Alabama, the Alabama League of Municipalities, the Business Council of Alabama, and the Alabama Retail Association. The report shall also be posted on the website of the department at all times during the comment period with information about how persons or entities can provide comment to the commission. Any comments from persons, entities, and organizations shall be submitted in writing to the commission within 45 days of the date distributed and posted. The commission shall review all written comments and make changes to its preliminary recommendations as it deems appropriate and shall submit a written report of its final recommendations to the Legislature by the third legislative day of the first regular session following the enactment of federal legislation implementing the agreement or the general concepts of the agreement, which includes a requirement that remote sellers collect and remit sales and use taxes to member states, becomes law.
","history":"(Act 2011-563, p. 1071, §5.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38945,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38093,"codeId":41425,"versionId":33752,"parentId":41419,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-205","shortTitle":"Section 40-23-205","catchLine":"Funding.","title":"Section 40-23-205 Funding.","sectionRange":null,"content":"The Legislature shall appropriate such funds from the general funds of the State of Alabama as necessary for the reasonable and necessary expenses of the commission, including the implementation and administration of programs developed pursuant to this division.
","history":"(Act 2011-563, p. 1071, §6.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38946,"hierarchyLevel":4,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38094,"codeId":32025,"versionId":null,"parentId":18329,"effectiveDate":null,"supersessionDate":null,"type":"Article","displayId":"7","shortTitle":"Article 7","catchLine":"School Items Annual Sales Tax Holiday.","title":"Article 7 School Items Annual Sales Tax Holiday.","sectionRange":"§40-23-210 to §40-23-213","content":null,"history":null,"numChildren":4,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":38947,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38096,"codeId":32027,"versionId":40894,"parentId":32025,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-211","shortTitle":"Section 40-23-211","catchLine":"Tax Exemption on Covered Items.","title":"Section 40-23-211 Tax Exemption on Covered Items.","sectionRange":null,"content":"Covered items, as defined herein, are exempted from paying the state sales and use tax during the period from 12:01 a.m. on the third Friday in July of each year and ending at 12 midnight the following Sunday. Items normally sold in pairs shall not be separated to qualify for the exemption provided for in this article.
","history":"(Act 2006-574, p. 1507, §2; Act 2017-120, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38949,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38097,"codeId":32028,"versionId":27126,"parentId":32025,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-212","shortTitle":"Section 40-23-212","catchLine":"Rules and Regulations.","title":"Section 40-23-212 Rules and Regulations.","sectionRange":null,"content":"The Commissioner of the Department of Revenue shall promulgate any rules necessary to implement and administer this article including, but not limited to, a list of those articles and items qualifying for the exemption pursuant to this article, that do not conflict with the streamlined sales and use tax agreement.
","history":"(Act 2006-574, p. 1507, §3.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38950,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38099,"codeId":42331,"versionId":null,"parentId":18329,"effectiveDate":null,"supersessionDate":null,"type":"Article","displayId":"8","shortTitle":"Article 8","catchLine":"Severe Weather Preparedness Tax Holiday.","title":"Article 8 Severe Weather Preparedness Tax Holiday.","sectionRange":"§40-23-230 to §40-23-233","content":null,"history":null,"numChildren":4,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":38952,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38101,"codeId":42333,"versionId":34645,"parentId":42331,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-231","shortTitle":"Section 40-23-231","catchLine":"Tax Exemption on Covered Items.","title":"Section 40-23-231 Tax Exemption on Covered Items.","sectionRange":null,"content":"Purchases of covered items, as defined herein, are exempted from the state sales and use tax during the period from 12:01 a.m. on the first Friday in July in 2012 and ending at twelve midnight the following Sunday. In subsequent years, purchases of covered items are exempted from state sales and use tax during the period from 12:01 a.m. on Friday of the last full weekend in February and ending at twelve midnight the following Sunday. Items normally sold in pairs or packages shall not be separated to qualify for the exemption provided for in this article.
","history":"(Act 2012-256, p. 492, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38954,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38102,"codeId":42334,"versionId":34646,"parentId":42331,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-232","shortTitle":"Section 40-23-232","catchLine":"Rules and Regulations.","title":"Section 40-23-232 Rules and Regulations.","sectionRange":null,"content":"The Commissioner of the Department of Revenue shall promulgate any rules necessary to implement and administer this article including, but not limited to, a list of those articles and items qualifying for the exemption pursuant to this article, that do not conflict with the Streamlined Sales and Use Tax Agreement.
","history":"(Act 2012-256, p. 492, §3.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38955,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38104,"codeId":42440,"versionId":null,"parentId":18329,"effectiveDate":null,"supersessionDate":null,"type":"Article","displayId":"9","shortTitle":"Article 9","catchLine":"Optional Network Election for Single Point Online Transactions.","title":"Article 9 Optional Network Election for Single Point Online Transactions.","sectionRange":"§40-23-240 to §40-23-244","content":null,"history":null,"numChildren":5,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":38957,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38105,"codeId":42441,"versionId":38034,"parentId":42440,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-240","shortTitle":"Section 40-23-240","catchLine":"Development and Implementation of System.","title":"Section 40-23-240 Development and Implementation of System.","sectionRange":null,"content":"(a) No later than September 30, 2013, the Department of Revenue shall develop and make available a system which allows any taxpayer required to file and remit a state, county, or municipal sales or use tax or a state, county, or municipal leasing or rental tax or a state, county, or municipal lodgings tax the ability to file and remit such sales and use tax or leasing or rental tax or lodgings tax returns and payments through an electronic single point of filing program. The system shall be known as the Optional Network Election for Single Point Online Transactions or “ONE SPOT.” The system shall be available for use by any taxpayer for tax periods after September 30, 2013, provided the taxpayer complies with this article and any rules promulgated by the department for the administration of the system. The ONE SPOT system shall allow for sales and use tax or leasing or rental tax or lodgings tax return filing and tax remittance only and may not provide for the administration or enforcement of local sales and use taxes and rental or leasing and lodgings tax.
(b) There shall be no charge to local taxing jurisdictions for utilization of the ONE SPOT system by taxpayers or the local taxing jurisdiction or its designee. Beginning no later than January 2013, the department shall provide financial assistance of up to one million dollars ($1,000,000) for three years to assist local taxing jurisdictions as necessary to ensure that their local system is capable of effectively interfacing with the ONE SPOT system.
(c) The system developed and implemented pursuant to subsection (a) shall have the capability to allow a taxpayer to file an electronic tax return for state sales and use taxes and leasing or rental taxes and lodgings tax and for each local taxing jurisdiction in which the taxpayer is required to file and remit a sales or use tax or leasing or rental tax or lodgings tax. The electronic tax return shall contain all information included in the standard multiple jurisdictional tax returns developed pursuant to Section 11-51-210, and all information included in the electronic tax return shall be electronically available to each appropriate local taxing jurisdiction without delay. The department shall consult with the State and Local Advisory Committee established in Section 40-23-242 regarding development and implementation of the ONE SPOT system.
(d) As required in Section 11-51-210, every local taxing jurisdiction levying or administering a sales or use tax or leasing or rental tax or lodgings tax shall submit to the department a list of the sales and use taxes and leasing or rental taxes and lodgings taxes levied or administered by that local taxing jurisdiction including current rates and shall submit to the department written notification of any new or amended sales or use tax or leasing or rental tax or lodgings tax. Failure to notify the department may not invalidate the levy of the tax unless otherwise provided for by law; except that the department may not be required to program new sales or use taxes and leasing or rental taxes or lodgings taxes or tax rates in the system until such time as notice is provided as required in this article and pursuant to Section 11-51-210.
","history":"(Act 2012-279, p. 563, §1; Act 2015-52, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38958,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38106,"codeId":42442,"versionId":41043,"parentId":42440,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-241","shortTitle":"Section 40-23-241","catchLine":"Authorization of System; Jurisdictional Requirements; Use by Taxpayers; Penalties and Interest.","title":"Section 40-23-241 Authorization of System; Jurisdictional Requirements; Use by Taxpayers; Penalties and Interest.","sectionRange":null,"content":"(a) All Alabama taxing jurisdictions shall authorize utilization of the ONE SPOT system for any taxpayer required to file a state or local sales or use tax or leasing or rental tax or lodgings tax return or remit the tax payments; provided, however, that any taxpayer utilizing the ONE SPOT system for filing an electronic tax return for a local taxing jurisdiction shall be required to simultaneously remit payment through the system or through another electronic method of payment accepted by the local taxing jurisdiction or its designee for which payment is being made. A local taxing jurisdiction may not accept a tax return from a taxpayer without payment through the system unless the taxpayer has prior approval from the local taxing jurisdiction to utilize a different approved electronic method of payment.
(b) No later than June 30, 2013, each local taxing jurisdiction shall provide the department with necessary information to allow all sales and use tax or leasing or rental tax or lodgings tax payments to be remitted directly to the bank account or other account designated by the local taxing jurisdiction. Each non-state administered local taxing jurisdiction shall set up their accounts to allow dishonored payments to be reversed. All tax payments made through the ONE SPOT system for non-state administered local taxing jurisdictions shall be remitted directly from the taxpayer to the designated bank account or other account of the local taxing jurisdiction with the ONE SPOT system serving as a conduit only.
(c) No taxpayer shall be required to use the ONE SPOT system for tax return filing and remittance of local sales and use taxes and leasing or rental taxes or lodgings taxes; provided, however, that any taxpayer utilizing the system shall comply with this article and any rules promulgated by the department for the administration of this article. Additionally, any taxpayer utilizing the system shall comply with any rules of the local taxing jurisdiction regarding the administration of the local sales or use tax or leasing or rental tax or lodgings tax.
(d) All penalties and interest shall be assessed according to state law and the rules of the department. Additionally, the state discount rate shall be applied except that a local taxing jurisdiction discount rate shall be applied if the local taxing jurisdiction notifies the department of such election in a manner prescribed by the department. A taxpayer who desires a waiver of any penalty assessed in relation to a return filed for a local taxing jurisdiction shall apply directly to that local taxing jurisdiction for the waiver.
","history":"(Act 2012-279, p. 563, §2; Act 2015-52, p. 189, §1; Act 2017-415, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38959,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38107,"codeId":42443,"versionId":34729,"parentId":42440,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-242","shortTitle":"Section 40-23-242","catchLine":"State and Local Advisory Committee.","title":"Section 40-23-242 State and Local Advisory Committee.","sectionRange":null,"content":"(a)(1) To ensure that local taxing jurisdictions have meaningful input into the development and operation of ONE SPOT, a State and Local Advisory Committee is hereby established to review the design and operation of the system and to make recommendations regarding system requirements and functionality to the Commissioner of Revenue.
(2) The committee shall consist of the following individuals:
a. Three representatives of county government, appointed by the Association of County Commissions of Alabama.
b. Three representatives of municipal government, appointed by the Alabama League of Municipalities.
c. One representative of the business community, appointed by the Business Council of Alabama.
d. One representative of the retail community, appointed by the Alabama Retail Association.
e. One representative of a county or municipality which levies a lease or rental tax appointed by the Speaker of the House of Representatives who shall be a nonvoting member.
f. One representative of the business community appointed by the President Pro Tempore of the Senate who shall be a nonvoting member.
(3) The committee members shall receive no compensation or reimbursement of expenses from the state for serving on the committee.
(b) The committee shall meet with the Commissioner of Revenue and with other employees of the department as the commissioner deems appropriate. The initial meeting shall be at a time and place to be determined by the commissioner and shall be held no later than September 30, 2012. At the initial meeting, the committee shall organize itself and shall determine the timing and frequency of subsequent meetings.
(c) The role of the committee shall be limited to providing input and recommendations on the development and functionality of the ONE SPOT system with relation to the filing of sales and use tax or leasing or rental tax returns and remittance of payments utilizing the ONE SPOT system. The committee shall make no review of the department’s administration of state taxes, of state-administered local taxes, nor of any other department matter beyond the ONE SPOT system.
(d) If the commissioner fails to act on recommendations made by the committee regarding ONE SPOT, the committee, by majority vote, may appeal to the Legislative Council for a determination on whether the committee’s recommendations shall be implemented. The determination of the Legislative Council shall be final.
","history":"(Act 2012-279, p. 563, §3.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38960,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38108,"codeId":42444,"versionId":34730,"parentId":42440,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-243","shortTitle":"Section 40-23-243","catchLine":"Construction of Article.","title":"Section 40-23-243 Construction of Article.","sectionRange":null,"content":"Nothing in this article shall be construed to authorize the Department of Revenue to impose fees on the local taxing jurisdictions or their designees for the maintenance or operation of the ONE SPOT system.
","history":"(Act 2012-279, p. 563, §4.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38961,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38109,"codeId":46741,"versionId":38897,"parentId":42440,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-244","shortTitle":"Section 40-23-244","catchLine":"Uniform Due Date for Eligible Taxes.","title":"Section 40-23-244 Uniform Due Date for Eligible Taxes.","sectionRange":null,"content":"Notwithstanding any other provisions of law, the due date for any taxes which are eligible to be filed through the ONE SPOT system set out in this article shall be the same due date as the corresponding state tax whether or not payment is made through the ONE SPOT system.
","history":"(Act 2015-52, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38962,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38110,"codeId":49032,"versionId":null,"parentId":18329,"effectiveDate":null,"supersessionDate":null,"type":"Article","displayId":"10","shortTitle":"Article 10","catchLine":"Wholesale to Retail Accountability Program","title":"Article 10 Wholesale to Retail Accountability Program","sectionRange":"§40-23-260 to §40-23-263","content":null,"history":null,"numChildren":4,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":38963,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38111,"codeId":49036,"versionId":41270,"parentId":49032,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-260","shortTitle":"Section 40-23-260","catchLine":"Program Established; Definitions; Informational Reports; Wholesale and Distributor Reporting Advisory Group.","title":"Section 40-23-260 Program Established; Definitions; Informational Reports; Wholesale and Distributor Reporting Advisory Group.","sectionRange":null,"content":"(a) This article shall establish the Wholesale to Retail Accountability Program or “WRAP”.
(b) For the purpose of this article, the following words shall have the following meanings:
(1) DEPARTMENT. The State Department of Revenue.
(2) LICENSED BEER OR WINE DISTRIBUTOR. A distributor, as licensed by the Alabama Alcoholic Beverage Control Board, selling or distributing beer or wine in this state.
(3) PERSON. Any individual, firm, partnership, association, corporation, limited liability company, receiver, trustee, or any other entity.
(4) RETAILER. A person or group of persons that have a relationship with each other as defined in Section 267(b) of the federal Internal Revenue Code whose primary business is the sale of tangible personal property at retail, including supporting operations such as warehousing, shipping, and storage of product, and who holds a license pursuant to Section 40-23-6 or 40-23-66.
(5) SELLER. A manufacturer, wholesaler, or distributor of beer, wine, or tobacco products who sells to a retailer in this state. The term also includes a wholesale club or warehouse club that sells tobacco under a membership.
(c) For the purpose of enforcing the collection of taxes levied by this chapter, on the sale of tangible personal property, every seller of tobacco products making sales within this state on which sales or use tax was not collected at the time of the sale and every beer or wine distributor, shall file informational reports with the department pursuant to subsection (d) as follows:
(1) Each licensed beer or wine distributor shall report sales of any beer or wine made to licensees for which an exemption from sales or use tax collection was claimed at the time of the sale. A licensed beer or wine distributor who donates beer or wine in the same manner as a retailer making a gift pursuant to Section 40-23-1(f) shall not be required to report such transaction under this article and is subject to the same exemption as a retailer making a gift pursuant to Section 40-23-1(f).
(2) Each seller of tobacco products, selling or distributing to retailers in this state, shall report sales of tobacco products for which exemptions from sales or use tax were claimed at the time of the sale.
(d) The informational report shall be filed in the following manner as provided by the department:
(1) The information provided in the report from each seller or distributor required in subdivision (1) of subsection (c) shall include seller’s legal name, seller’s address, seller’s beverage license number, if applicable, retailer’s name, retailer’s address, total dollar amount sold for the reporting period, invoice period, invoice date and applicable Alabama Alcoholic Beverage Control Board license number provided by the retailer.
(2) The information provided in the report from each seller or distributor required in subdivision (2) of subsection (c) shall include the seller’s legal name, seller’s address, retailer’s name, retailer’s address, total dollar amount sold for the reporting period, and applicable sales tax number provided by the retailer. The department shall allow the seller to file a consolidated report to meet the requirements of Section 40-25-16.1 and this article.
(3) The department shall provide an electronic filing mechanism for submission of the informational report to the department.
(4) The informational report shall be due on or before the 20th day of the month next succeeding the month in which a sale occurs. The first informational report due shall be for sales occurring on or after July 1, 2018.
(e) If a seller fails to properly file the required informational report in good faith with the department on or before the prescribed date, the following penalties shall apply on or after January 1, 2019, and each reporting period thereafter:
(1) The first violation of this section shall result in a written notice from the department. The notice shall advise the seller of the non-compliance and the penalty for future non-compliance if the required informational reports are not filed within 30 days from the written notice as provided herein.
(2) The second violation of this section shall result in a penalty not to exceed five hundred dollars ($500).
(3) The third and each subsequent violation of this section shall result in a penalty not to exceed one thousand dollars ($1,000).
(f) The department shall not initiate an automated assessment or automated audit based solely on data provided to the department in the informational reports.
(g) The informational report filed with the department shall be subject to the exchange of information provisions set forth in Section 40-2A-10 for municipal and county government agencies in this state. Effective January 1, 2022, the department shall be the sole source for municipal and county government agencies to obtain sales information that is required to be provided under this article to the department.
(h)(1) To ensure that taxpayers and industry have meaningful input into the informational reports, a Wholesale and Distributor Reporting Advisory Group is hereby established to make recommendations regarding the reporting of the informational reports required herein.
(2) The advisory group shall consist of the following individuals:
a. One representative from the Alabama Department of Revenue as designated by the Commissioner who shall serve as chair of the group.
b. One representative of county government, appointed by the Association of County Commissions of Alabama.
c. One representative of municipal government, appointed by the Alabama League of Municipalities.
d. One representative of the industry community, appointed by the Alabama Wholesale Beer Association.
e. One representative of the tobacco industry community, appointed by the Alabama Wholesale Distributors Association.
f. One representative of the retail community, appointed by the Alabama Retail Association.
g. One representative from the Alabama Alcoholic Beverage Control Board as designated by the Administrator.
h. One representative of the industry community, appointed by the Alabama Beer Association.
i. One representative of the industry community, appointed by the Alabama Grocers Association.
j. One representative of the industry community, appointed by the Petroleum and Convenience Marketers of Alabama.
k. One representative of the industry community, appointed by the Cigar Association of America, Inc.
l. Three additional industry representatives as designated by the Commissioner of Revenue.
(3) The designating and appointing authorities shall coordinate their designations and appointments to assure the advisory group is inclusive and reflects the racial, gender, geographic, urban, rural, and economic diversity of the state.
(4) a. The advisory group shall receive no compensation or reimbursement of expense from the state for serving on the committee.
b. The advisory group shall meet with the designee of the Commissioner of Revenue and with other employees of the department as the commissioner deems appropriate. The meeting times and place will be determined by the designee of the commissioner.
c. The role of the advisory group shall be limited to providing industry input and recommendations towards the filing of required informational reports. The group shall make no review of any other department matter beyond the recommendation of required reporting by this article.
(i) By no later than January 15, 2020, the department shall submit a report regarding the implementation, administration, achievements, and suggested improvements related to the WRAP Program to the Chairs of the House Ways and Means General Fund and Education Trust Fund Committees and the Senate Finance and Taxation General Fund and Education Trust Fund Committees and the Legislative Service Agency, Fiscal Division.
","history":"(Act 2017-294, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38964,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38112,"codeId":49034,"versionId":41268,"parentId":49032,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-261","shortTitle":"Section 40-23-261","catchLine":"Filing of Duplicate Information Returns.","title":"Section 40-23-261 Filing of Duplicate Information Returns.","sectionRange":null,"content":"(a) The department is authorized to require that every payment settlement entity, third party settlement organization, electronic payment facilitator, or other third party acting on behalf of a payment settlement entity, all as defined in Section 6050W of the Internal Revenue Code and referred to herein as a reporting entity, required to file information reports pursuant to that section , within 30 days of the filing due date, shall file with the department in such form and manner as prescribed by the department either a duplicate of all such information returns or a duplicate of such information returns related to taxpayers or participating payees, as defined in Section 6050W of the Internal Revenue Code, with an Alabama address. The department may require that such duplicate information returns be filed electronically.
(b) The information received by the department on a duplicate information return filed pursuant to this section shall be used only for taxes administered by the department.
(c) Any reporting entity failing to file a duplicate information return with the department on or before the prescribed date shall be subject to the following penalties:
(1) The first violation shall result in a written notice from the department. The notice shall advise the reporting entity of the non-compliance and the penalty for future non-compliance if the required duplicate information return is not filed within 30 days from the written notice as provided herein.
(2) The subsequent violation(s) shall result in a penalty not to exceed one-thousand dollars ($1,000) for each month or fraction of a month during which each failure continues.
","history":"(Act 2017-294, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38965,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38113,"codeId":49035,"versionId":41269,"parentId":49032,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-262","shortTitle":"Section 40-23-262","catchLine":"Submission of Information on Municipal Business Privilege License Applications.","title":"Section 40-23-262 Submission of Information on Municipal Business Privilege License Applications.","sectionRange":null,"content":"(a) Information on all municipal business privilege license applications for new licenses and renewals issued on or after October 1, 2019, shall be electronically transmitted to the department by the licensing official or agent in the same manner as privilege licenses issued pursuant to Chapter 12.
(b) The department may adopt rules to administer and implement this section.
","history":"(Act 2017-294, §3.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38966,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38114,"codeId":49033,"versionId":41267,"parentId":49032,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-23-263","shortTitle":"Section 40-23-263","catchLine":"Construction of Section 40-23-260.","title":"Section 40-23-263 Construction of Section 40-23-260.","sectionRange":null,"content":"Section 40-23-260 is limited to the reporting of certain information to the Department of Revenue and shall not be construed as limiting or changing the existing record keeping requirements as provided in Section 40-23-9.
","history":"(Act 2017-294, §4.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38967,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38115,"codeId":18835,"versionId":null,"parentId":40,"effectiveDate":null,"supersessionDate":null,"type":"Chapter","displayId":"24","shortTitle":"Chapter 24","catchLine":"Securities Tax. [Repealed]","title":"Chapter 24 Securities Tax. [Repealed]","sectionRange":"§40-24-1 to §40-24-8","content":null,"history":null,"numChildren":8,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":38968,"hierarchyLevel":1,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38116,"codeId":18838,"versionId":14946,"parentId":18835,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-24-1","shortTitle":"Section 40-24-1","catchLine":"Definitions.","title":"Section 40-24-1 Definitions.","sectionRange":null,"content":"Repealed by Act 99-665, 2nd Sp. Sess., § 9. As to effective date, see the Code Commissioner’s Notes in the code supplement.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §365.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38969,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38117,"codeId":18842,"versionId":14949,"parentId":18835,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-24-2","shortTitle":"Section 40-24-2","catchLine":"Owner May File List of Securities.","title":"Section 40-24-2 Owner May File List of Securities.","sectionRange":null,"content":"Repealed by Act 99-665, 2nd Sp. Sess., § 9. As to effective date, see the Code Commissioner’s Notes in the code supplement.
","history":"(Acts 1935, No. 194, p. 256; Acts 1936-37, Ex. Sess., No. 88, p. 105; Code 1940, T. 51, §366.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38970,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38118,"codeId":18847,"versionId":14955,"parentId":18835,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-24-3","shortTitle":"Section 40-24-3","catchLine":"Recordation of Lists in Bound Books.","title":"Section 40-24-3 Recordation of Lists in Bound Books.","sectionRange":null,"content":"Repealed by Act 99-665, 2nd Sp. Sess., § 9. As to effective date, see the Code Commissioner’s Notes in the code supplement.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §367.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38971,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38119,"codeId":18852,"versionId":14960,"parentId":18835,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-24-4","shortTitle":"Section 40-24-4","catchLine":"Fees for Filing and Recording.","title":"Section 40-24-4 Fees for Filing and Recording.","sectionRange":null,"content":"Repealed by Act 99-665, 2nd Sp. Sess., § 9. As to effective date, see the Code Commissioner’s Notes in the code supplement.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §368.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38972,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38120,"codeId":18857,"versionId":14965,"parentId":18835,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-24-5","shortTitle":"Section 40-24-5","catchLine":"When List Operates as Record; Receipt.","title":"Section 40-24-5 When List Operates as Record; Receipt.","sectionRange":null,"content":"Repealed by Act 99-665, 2nd Sp. Sess., § 9. As to effective date, see the Code Commissioner’s Notes in the code supplement.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §369.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38973,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38121,"codeId":18862,"versionId":14970,"parentId":18835,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-24-6","shortTitle":"Section 40-24-6","catchLine":"Access to Record Books; Transcripts.","title":"Section 40-24-6 Access to Record Books; Transcripts.","sectionRange":null,"content":"Repealed by Act 99-665, 2nd Sp. Sess., § 9. As to effective date, see the Code Commissioner’s Notes in the code supplement.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §370.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38974,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38122,"codeId":18869,"versionId":14976,"parentId":18835,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-24-7","shortTitle":"Section 40-24-7","catchLine":"Recording as Notice.","title":"Section 40-24-7 Recording as Notice.","sectionRange":null,"content":"Repealed by Act 99-665, 2nd Sp. Sess., § 9. As to effective date, see the Code Commissioner’s Notes in the code supplement.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §371.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38975,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38123,"codeId":18873,"versionId":14980,"parentId":18835,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-24-8","shortTitle":"Section 40-24-8","catchLine":"Privilege or License Tax on Lists of Securities.","title":"Section 40-24-8 Privilege or License Tax on Lists of Securities.","sectionRange":null,"content":"Repealed by Act 99-665, 2nd Sp. Sess., § 9. As to effective date, see the Code Commissioner’s Notes in the code supplement.
","history":"(Acts 1935, No. 194, p. 256; Acts 1936-37, Ex. Sess., No. 88, p. 105; Code 1940, T. 51, §372.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38976,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38124,"codeId":18883,"versionId":null,"parentId":40,"effectiveDate":null,"supersessionDate":null,"type":"Chapter","displayId":"25","shortTitle":"Chapter 25","catchLine":"Tobacco and Vaping Tax.","title":"Chapter 25 Tobacco and Vaping Tax.","sectionRange":"§40-25-1 to §40-25-85","content":null,"history":null,"numChildren":5,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":38977,"hierarchyLevel":1,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38125,"codeId":18884,"versionId":null,"parentId":18883,"effectiveDate":null,"supersessionDate":null,"type":"Article","displayId":"1","shortTitle":"Article 1","catchLine":"Sales Tax.","title":"Article 1 Sales Tax.","sectionRange":"§40-25-1 to §40-25-29","content":null,"history":null,"numChildren":36,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":38978,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38128,"codeId":42646,"versionId":34905,"parentId":18884,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25-2.1","shortTitle":"Section 40-25-2.1","catchLine":"Tax on Cigar Wrappers.","title":"Section 40-25-2.1 Tax on Cigar Wrappers.","sectionRange":null,"content":"(a) For the purposes of this section, the following terms shall have the respective meanings ascribed to them by this section:
(1) CIGAR WRAP. An individual tobacco wrapper that is made wholly or in part from tobacco, including reconstituted tobacco, whether in the form of tobacco leaf, sheet, or tube, if the wrap is designed to be offered to or purchased by a consumer.
(2) COMMISSIONER. The Commissioner of the Department of Revenue of the State of Alabama.
(3) DEPARTMENT. The Department of Revenue of the State of Alabama.
(4) NET TAX PROCEEDS. The entire proceeds from the tax herein levied less costs of collection, refunds, grants, and credits as may be authorized by law.
(5) PERSON. Individuals, firms, corporations, partnerships, companies, or other agencies, associations, incorporated or otherwise, singular or plural.
(6) STATE. The State of Alabama.
(7) WHOLESALE SALE. A sale of tangible personal property by wholesalers to licensed retail merchants, jobbers, dealers, or other wholesalers for resale and shall not include a sale by wholesalers to users or consumers, not for resale.
(b) There is hereby levied a tax upon all cigar wrappers manufactured using tobacco sold at wholesale in this state or imported into this state for use, consumption, or sale at retail. The tax shall be levied upon each package in the following amounts: Weighing not more than one and one-eighth ounces, four cents ($.04); over one and one-eighth ounces, not exceeding two ounces, ten cents ($.10); over two ounces, not exceeding three ounces, sixteen cents ($.16); over three ounces, not exceeding four ounces, twenty-one cents ($.21); and six cents ($.06) additional tax for each ounce or fractional part thereof over four ounces.
(c) Notwithstanding subsection (b), nothing in this section shall be construed to apply to a cigar manufacturer using wrappers made from tobacco applying those wrappers on a finished cigar for sale at retail.
(d) Before any person engages in the business of selling any of the items on which the tax levied by this section has not been paid to the department, the person shall make application to the department upon forms prepared by the department for a license. The license shall be a condition precedent to engaging or continuing in the business of selling the items taxed under this chapter.
(e) On or before the 20th day of each month, each person on whom the tax levied by this chapter is imposed shall render to the department on forms prescribed by the department a true and correct statement showing the amounts utilized in the measurement of the tax and all other information as the department may require and shall pay to the department the amount of tax shown due.
(f) Any person subject to this section who shall fail to make any report required of them by the department or shall fail to keep any of the records required herein shall be guilty of a Class B misdemeanor. Each month of such failure shall constitute a separate offense.
(g) The tax imposed by this section shall be in addition to all other licenses and taxes levied by law as a condition precedent to engaging in any business taxable hereunder.
(h) Any taxpayer who shall violate this section may be restrained from continuing in business, and the proper prosecution shall be instituted in the name of the State of Alabama by its Attorney General or by the counsel of the department until such person shall have complied with this chapter.
(i) The department shall enforce this section and may prescribe, adopt, promulgate, and enforce rules relating to any matter or thing pertaining to the administration and enforcement of this section and the collection of taxes, penalties, and interest imposed by this section.
(j) The department for good cause may grant up to a 30-day extension for the time for making any return required under this section.
(k) All revenue collected under the provisions of this section shall be paid to the department and shall be distributed as is provided for the distribution of funds received from tobacco products other than cigarettes in Section 40-25-23(3).
(l) The amount of money as shall be appropriated for each fiscal year by the Legislature to the department with which to pay the salaries and the cost of operation and management of the department shall be deducted, as a first charge thereon, from the taxes collected under the provisions of this section; provided, however, that the expenditure of such sum so appropriated shall be budgeted and allotted pursuant to Sections 41-4-80 to 41-4-96, inclusive, and limited to the amount appropriated to defray the expenses of operating the department for each fiscal year.
","history":"(Act 2012-425, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38981,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38129,"codeId":47341,"versionId":39422,"parentId":18884,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25-2.2","shortTitle":"Section 40-25-2.2","catchLine":"Floor-Stock Tax on Tobacco Products Owned by Permitted Wholesaler.","title":"Section 40-25-2.2 Floor-Stock Tax on Tobacco Products Owned by Permitted Wholesaler.","sectionRange":null,"content":"(a) There is hereby imposed a floor-stock tax on tobacco products owned by any permitted wholesaler as of the effective date of any tax increase regarding any tobacco products enumerated in Sections 40-25-2 and 40-25-2.1.
(b) For the purpose of tax revaluation, at the close of business on the day before the effective date of the tobacco tax rate increase, each permitted wholesaler shall take a physical inventory of tax-paid tobacco products, stamped cigarettes and unaffixed revenue stamps currently owned which are affected by the tax increase. Each person subject to the tax increase shall:
(1) File a report on forms prescribed by the Department of Revenue, setting forth the additional tax due for each product type and stamp subject to the increase; and
(2) Pay the additional tax imposed under Sections 40-25-2 and 40-25-2.1, along with the above report, to the Department of Revenue no later than 30 days following the effective date of the tax increase.
Any permitted wholesaler owning tobacco products and revenue stamps as of the effective date of the tax increase shall be liable for the tax, and it shall be paid in the manner prescribed by the Department of Revenue.
(c) Notwithstanding any other provision of this chapter, revenue from the additional tax in subsection (a) imposed by Act 2015-535 shall be deposited into the State General Fund for the Medicaid Program.
","history":"(Act 2015-535, 2nd Sp. Sess., §§2, 4.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38982,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38130,"codeId":18899,"versionId":15001,"parentId":18884,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25-3","shortTitle":"Section 40-25-3","catchLine":"Design, Name, Etc., of Stamps.","title":"Section 40-25-3 Design, Name, Etc., of Stamps.","sectionRange":null,"content":"The Department of Revenue shall design the form and kind of stamps to be used and shall duly adopt and promulgate such form of stamps. Such stamps so adopted and promulgated shall be known and termed as “Alabama Revenue Stamp,” and in any information or indictment, it shall be sufficient to describe the stamps as “Alabama Revenue Stamps.”
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §730.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38983,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38133,"codeId":18909,"versionId":39378,"parentId":18884,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25-5","shortTitle":"Section 40-25-5","catchLine":"Discounts Allowed for Handling Stamps; Consignment of Stamps.","title":"Section 40-25-5 Discounts Allowed for Handling Stamps; Consignment of Stamps.","sectionRange":null,"content":"The Department of Revenue is hereby authorized and directed to have prepared and distributed stamps suitable for denoting the tax on all articles enumerated herein. Any person, firm, corporation, or association of persons, other than the Department of Revenue, who sells tobacco tax stamps not affixed to tobacco sold and delivered by them, whether the stamps be genuine or counterfeit, shall be guilty of a felony and punishable as set out in Section 40-25-6. When wholesalers or jobbers have qualified as such with the Department of Revenue, as provided in Section 40-25-16, and desire to purchase stamps as prescribed herein for use on taxable tobaccos sold and delivered by them, the Department of Revenue shall allow on such sales of tobacco tax stamps a discount of 4.75 percent on the entire amount of the sale. Where wholesalers or jobbers are entitled to purchase stamps at a discount as herein provided, instead of the Department of Revenue selling such stamps to such jobbers or wholesalers for cash, it may consign such stamps, if and when such wholesaler or jobber shall give to the Department of Revenue a good and sufficient bond executed by some surety company authorized to do business in this state, conditioned to secure the payment for the stamps so consigned when and as they are used on manufactured tobacco products by such wholesaler or jobber. Every wholesaler or jobber purchasing stamps on consignment as described herein, shall be required to make a full and complete accounting and remittance on or before the twentieth of each month for all stamps used on taxable tobaccos during the preceding month. Every wholesaler or jobber refusing or failing to comply with this section shall forfeit the commission or discount on stamps used which he failed or refused to account or remit for in the time allowed, and in addition shall be charged interest on such delinquent amount for each day delinquent at the rate of eight percent per annum.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §728; Acts 1951, No. 296, p. 590, §3; Acts 1955, No. 532, p. 1181; Act 2015-535, 2nd Sp. Sess., §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38986,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38134,"codeId":18914,"versionId":15013,"parentId":18884,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25-6","shortTitle":"Section 40-25-6","catchLine":"Fraud in Use or Reuse of Stamps; Counterfeit Stamps.","title":"Section 40-25-6 Fraud in Use or Reuse of Stamps; Counterfeit Stamps.","sectionRange":null,"content":"Whoever removes or otherwise prepares any Alabama Revenue Stamps with intent to use, or cause the same to be used, after it has already been used, or buys, sells, offers for sale or gives away any such washed, removed, or restored stamps to any person for using or who used the same, or has in his possession any washed, restored, removed, or altered stamp which has been removed from the article to which it has been previously affixed, or whoever for the purpose of indicating the payment of any tax hereunder reuses any stamp which has heretofore been used for the purpose of paying any tax provided in this article, or whoever except the Department of Revenue sells any Alabama Revenue Stamps not affixed to taxable tobaccos as provided herein, is guilty of a felony and, upon conviction, shall be punished by imprisonment in the penitentiary for not less than a year and a day, nor more than five years, and in addition may be fined not less than $1,000 nor more than $5,000.
Whoever manufactures, buys, sells, offers for sale or has in his or its possession any reproduction or counterfeit of the Alabama Revenue Stamps provided for in this article is guilty of a felony and, upon conviction, shall be punished by imprisonment in the penitentiary for not less than a year and a day, nor more than 10 years, and in addition, may be fined not less than $2,000 nor more than $10,000.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §734.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38987,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38135,"codeId":18920,"versionId":37242,"parentId":18884,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25-7","shortTitle":"Section 40-25-7","catchLine":"Drop Shipments.","title":"Section 40-25-7 Drop Shipments.","sectionRange":null,"content":"Any retail dealer or semijobber of tobacco products enumerated and defined in this article purchasing, or receiving such commodities from without the state, whether the same shall have been ordered or purchased through a wholesaler or jobber in this state, or by drop shipment or otherwise, shall within 12 hours of receipt of such tobacco products, provide electronically, a true duplicate invoice of all such purchases or receipts to the Department of Revenue, the invoice carrying the name of the person or firm from whom or through whom such purchases or shipments of the tobacco products so received, showing kinds and quantities. Any retail dealer or semijobber failing or refusing to furnish duplicate invoices, in both the manner and time allowed, may be subject to a department imposed penalty of not less than one thousand dollars ($1,000) nor more than five thousand dollars ($5,000), to be multiplied by the sum of the current violation plus prior violations of this subsection. Tobacco products imported by retail dealers and semijobbers in which a true and duplicate invoice has not been received by the department are considered contraband and subject to confiscation as provided for in this chapter.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §720; Act 2014-262, p. 827, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38988,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38138,"codeId":55221,"versionId":48254,"parentId":18884,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25-8.2","shortTitle":"Section 40-25-8.2","catchLine":"Transportation of Certain Tobacco Products - Proof of Destination.","title":"Section 40-25-8.2 Transportation of Certain Tobacco Products - Proof of Destination.","sectionRange":null,"content":"(a) Proof of the destination of tobacco products being transported shall be provided upon request of any law enforcement officer in this state. The proof shall be verifiable by the law enforcement officer.
(b) This section shall not apply to tobacco products transported upon the public highways, roads, and streets of this state if the tobacco products are being transported in interstate commerce.
(c) A person failing to present documentation required by this section may be subject to the following civil penalties to be assessed by the department:
(1) On the first violation of this section, the owner or driver shall be assessed a civil penalty of one hundred dollars ($100).
(2) On a second or subsequent violation within a three-year period, a civil penalty of one hundred dollars ($100) multiplied by the total number of violations within the three-year period shall be assessed.
(3) A person transporting tobacco products without possession of proper documentation shall be guilty of a Class A misdemeanor. Any person who has been convicted under this section shall be guilty of a Class C felony for a second or subsequent violation of this section, regardless of the amount of tobacco products involved in the violation.
(d) This section shall not apply to individuals transporting tobacco for personal consumption as provided in Section 40-25-25.
","history":"(Act 2022-352, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38991,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38139,"codeId":18931,"versionId":37244,"parentId":18884,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25-9","shortTitle":"Section 40-25-9","catchLine":"Procedure When Goods Are Confiscated.","title":"Section 40-25-9 Procedure When Goods Are Confiscated.","sectionRange":null,"content":"In all cases of seizure of any goods, wares, merchandise, or other property hereafter made as being subject to forfeiture under provisions of this article:
(1) The officer or person making the seizure shall cause a list containing a particular description of the goods, wares, merchandise or other property seized to be prepared in duplicate. The list shall be properly attested by the officer.
(2) The Department of Revenue shall then proceed to post a notice for three weeks on its web site describing the articles and stating the time and place and cause of their seizure and requiring any person claiming them to appear and make such claim in writing within 30 days from the date of the first posting of such notice.
(3) Any person claiming the goods, wares or merchandise or other property so seized as contraband within the time specified in the notice may file with the Department of Revenue a claim in writing, stating the person’s interest in the articles seized and may execute a bond to the Department of Revenue in a penal sum equal to double the value of the goods so seized, but in no case shall the bond be less than the sum of $200, with sureties to be approved by the clerk of the circuit court in the county in which the goods are seized, conditioned that in the case of condemnation of the articles so seized, the obligors shall pay to the Department of Revenue the full value of the goods so seized and all costs and expenses of the proceedings to obtain such condemnation, including a reasonable attorney’s fee. And upon the delivery of such bond to the Department of Revenue, it shall transmit the same with the duplicate list or description of the goods seized to the district attorney of the circuit in which such seizure was made, and the district attorney shall file a complaint in the circuit court of the county where the seizure was made to secure the forfeiture of the goods, wares, merchandise or other property. Upon the filing of the bond, the goods shall be delivered to the claimant pending the outcome of the case; provided, that the claimant must purchase the proper stamps to be affixed to each article of tobacco before the goods are delivered to the claimant by the Department of Revenue.
(4) If no claim is interposed and no bond given within the time above specified, such goods, wares, merchandise or other property shall be forfeited without further proceedings and the same shall be destroyed, if tobacco goods, or sold at auction, if a vehicle. The proceeds of sale when received by the Department of Revenue shall be turned in to the Treasury as other revenues are required by law to be turned in. The proceedings against goods, merchandise or other property pursuant to the provisions of this article shall be considered as proceedings in rem unless otherwise provided. Should the Department of Revenue have to resort to the courts for collection of the tax due and assessed, no advertisement shall be made and the confiscated tobaccos may be held as evidence pending the results of court action.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §722; Act 2014-262, p. 827, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38992,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38140,"codeId":18935,"versionId":15030,"parentId":18884,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25-10","shortTitle":"Section 40-25-10","catchLine":"Department May Compromise Confiscation; Rules and Regulations Governing Interstate Common Carriers.","title":"Section 40-25-10 Department May Compromise Confiscation; Rules and Regulations Governing Interstate Common Carriers.","sectionRange":null,"content":"The Department of Revenue may in its discretion return any goods confiscated under this article or any part thereof when it is shown that there was no intention to violate the provisions of this article. When any goods, merchandise or other property are confiscated under the provisions of this article, the Department of Revenue may, in its discretion, return such goods to the parties from whom they are confiscated if and when such parties shall pay to the Department of Revenue, or its duly authorized representative, an amount equal to the tax due under this article on the goods confiscated, and in such cases no advertisement shall be made or notices posted in connection with said confiscation.
The Department of Revenue may promulgate rules and regulations governing the stamping of any articles or commodities enumerated herein handled by persons, firms or corporations operating on interstate common carriers. Any rules or regulations of the Department of Revenue, when duly made and promulgated shall have the full force and effect of law. Any person violating such rule when duly made and promulgated, shall be guilty of a misdemeanor and shall upon conviction be fined not less than $50 nor more than $100 for each offense.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §723.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38993,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38142,"codeId":18946,"versionId":15039,"parentId":18884,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25-12","shortTitle":"Section 40-25-12","catchLine":"Enforcement by Inspection; Penalties for Interfering with Inspection.","title":"Section 40-25-12 Enforcement by Inspection; Penalties for Interfering with Inspection.","sectionRange":null,"content":"It shall be provided by regulations of the Department of Revenue the methods of breaking packages, forms and kinds of containers and methods of affixing stamps that shall be employed by persons, firms or corporations subject to the tax imposed by this article which will make possible the enforcement of payment by inspection and any person, firm or corporation subject to this tax, engaging in or permitting such practices as are prohibited by regulations of the Department of Revenue or in any other practice which makes it difficult to enforce the provisions of this article by inspection, or if any person, firm, or corporation, agent or officer thereof, who shall upon demand of the Department of Revenue, any officer or agent of the Department of Revenue, refuses to allow full inspection of the premises or any part thereof, or who shall hinder or in anywise delay or prevent such inspection when demand is made therefor, or in any way interferes with any agent of the Department of Revenue in the performance of his duties in enforcing this article, confiscation of tobaccos deemed by agent of the Department of Revenue to be contraband is hereby declared to be one of the duties of an agent of the Department of Revenue, shall be deemed to be guilty of a misdemeanor and shall, upon conviction, be fined not less than $100 nor more than $200 for each offense, or imprisonment in the county jail for a period not exceeding 90 days, or both, in the discretion of the court.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §725.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38995,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38143,"codeId":18949,"versionId":37245,"parentId":18884,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25-13","shortTitle":"Section 40-25-13","catchLine":"Records.","title":"Section 40-25-13 Records.","sectionRange":null,"content":"It shall be the duty of every person, firm, corporation, club, or association of persons, receiving, storing, selling, or handling tobacco products enumerated herein in any manner whatsoever to keep and preserve all invoices, books, papers, cancelled checks, or other memoranda touching the purchase, sale, exchange, or receipt of any and all tobacco products enumerated herein. All such invoices, books, papers, cancelled checks, or other memoranda shall be subject to audit and inspection by any duly authorized representative of the Department of Revenue at any and all times. Each operator of a retail outlet shall receive, examine, and retain the purchase invoice from the source of the tobacco products for every purchase of tobacco products for a period of 90 days at the retail location. At the end of the 90 days, the purchase records shall be maintained with the required books and records for a period of three years from the date of purchase. Invoices received by the retailer dealer must be computer or machine generated and must show the seller’s or supplier’s name. Invoices cannot be handwritten. Failure to acquire appropriate invoices, substantiate tax payment or retain invoices in the above manner may result in confiscation of the tobacco products in accordance with the procedures of this chapter. Any person, firm, corporation, club, or association of persons who fails or refuses to keep and preserve the records as herein required, or who upon request by a duly authorized agent of the Department of Revenue fails or refuses to allow an audit or inspection of records as hereinabove provided may be subject to a department imposed penalty of not less than five hundred dollars ($500) nor more than one thousand dollars ($1,000). This penalty is multiplied by the number of violations of this subsection.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §726; Acts 1992, No. 92-186, p. 349, §69; Act 2014-262, p. 827, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38996,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38145,"codeId":18957,"versionId":15045,"parentId":18884,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25-15","shortTitle":"Section 40-25-15","catchLine":"Nontaxable Sales.","title":"Section 40-25-15 Nontaxable Sales.","sectionRange":null,"content":"(a) A wholesaler or jobber, as defined in Section 40-25-1 and who is duly qualified as such wholesaler or jobber under Section 40-25-16, may sell tobacco products enumerated herein without the Alabama Revenue Stamps affixed thereto; provided, that: Such products are sold and shipped or delivered in interstate commerce to a person outside of this state, and such wholesaler or jobber shall have on file, for a period of three years, subject to inspection by the department, a record of such sale, and also the original purchase order, and a copy of the invoice therefor, and a receipt from a common carrier, contract carrier or post office showing shipment for delivery in such other state, or, if delivered by such dealer to the purchaser at a point outside of the State of Alabama, a receipt showing such delivery in addition to the record, original purchase order and copy of the invoice relating to such sale.
(b) Such duly qualified wholesaler or jobber may sell tobacco products enumerated herein without the Alabama Revenue Stamps affixed thereto; provided, that:
and such wholesaler or jobber shall have on file, for a period of three years, subject to inspection by the department, a record of such sale, the original purchase order and copy of invoice therefor, a receipt from such purchase showing that such purchase was made exclusively for resale in such other state, and a record showing the purchase and use of such revenue stamps of such other state.
(c) Tobacco products enumerated herein may be sold by such duly qualified wholesalers or jobbers, without revenue stamps affixed thereto, when sold to the United States or to any instrumentality thereof for resale to or for use or consumption by members of the Armed Services of the United States; provided, that the books and records, including original purchase orders and copy of invoices showing such sales are kept on file for a period of three years, subject to inspection by the department.
(d) Tobacco products enumerated herein may be sold by such duly qualified wholesalers or jobbers, without revenue stamps affixed thereto, when sold and delivered to ships regularly engaged in foreign commerce or coastwise shipping between points in this state and points outside of this state for resale to or for use or consumption upon such ship or in foreign commerce.
(e) The department is authorized to adopt rules and regulations with respect to the enforcement of the provisions of this section, to prevent any evasion of the tax herein imposed.
(f) A failure to comply with any provision of this section with respect to any sale of unstamped tobacco products shall subject the wholesaler or jobber to the payment of the tax thereon imposed by this article. Any person, including any firm, corporation or association of persons, who violates any of the provisions of this section shall be guilty of a misdemeanor, and upon conviction shall be punished by a fine of not less than $100 nor more than $500, or by imprisonment in the county jail for a period not to exceed six months, either or both, at the discretion of the court.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §729; Acts 1943, No. 484, p. 446.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":38998,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38146,"codeId":18961,"versionId":15049,"parentId":18884,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25-16","shortTitle":"Section 40-25-16","catchLine":"Persons Not Qualifying as Wholesalers or Jobbers; Permit for Wholesalers or Jobbers; Revocation Procedure.","title":"Section 40-25-16 Persons Not Qualifying as Wholesalers or Jobbers; Permit for Wholesalers or Jobbers; Revocation Procedure.","sectionRange":null,"content":"No person, firm, corporation, association, or copartnership operating more than one retail store or mercantile establishment within this state under the same ownership, supervision, or management, or operating a wholesale and retail business under the same roof, shall be included within the meaning of the words “wholesaler or jobber,” as the same are used in this article. This provision is made in the exercise of the police power of the state, as well as for the purpose of raising revenue.
Every wholesaler or jobber who desires to qualify as such with the Department of Revenue, shall make application to the Department of Revenue on blanks prescribed for this purpose, which shall be supplied upon request. Said application blanks will require such information relative to the nature of business engaged in by said wholesaler or jobber as the Department of Revenue deems necessary to the qualifying of said wholesaler or jobber. When the application is received by the Department of Revenue and it believes said wholesaler or jobber to be qualified, it shall issue to said wholesaler or jobber a permit qualifying him as a wholesaler or jobber, as defined in this article, and he shall be allowed the discount on purchases of stamps as set out herein for wholesalers or jobbers purchasing stamps for their individual use. The Department of Revenue shall not sell any stamps or allow any discount on any sale of stamps to any wholesaler or jobber until said wholesaler or jobber shall have complied with all of the provisions of this section. The Department of Revenue may at any time revoke the permit issued to any wholesaler, pursuant to the applicable notice and appeal procedures set forth in Chapter 2A of this title, if the wholesaler has violated any of the provisions of this chapter, or any of the rules of the Department of Revenue adopted and promulgated under authority of this article, and refuse to sell any wholesaler or jobber, any stamps until such time as his permit shall be restored.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §730; Acts 1992, No. 92-186, p. 349, §70.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39000,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38148,"codeId":18967,"versionId":15055,"parentId":18884,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25-17","shortTitle":"Section 40-25-17","catchLine":"Sales by Wholesale Dealer.","title":"Section 40-25-17 Sales by Wholesale Dealer.","sectionRange":null,"content":"Every wholesale dealer in this state shall before shipping, delivering or sending out any one or more articles taxed herein, to any dealer in this state or for sale in this state, cause the same to have the requisite denominations and amount of stamp, or stamps, to represent the tax affixed as stated herein and cause the same to be cancelled by writing or stamping across the face thereof the number of such wholesale dealer, said number to be supplied by the Department of Revenue, and every other wholesale dealer shall at the time of shipping or delivering any one or more articles taxed herein make a true duplicate invoice of the same showing the date, amount and value of each class of articles shipped or delivered and retain a duplicate thereof, subject to the audit and inspection of the Department of Revenue, its authorized agents and representatives, for three years. Wholesale dealers in this state who ship, deliver or send any one or more articles taxed herein to the United States government for sale or distribution to any military, naval or marine reservation owned by the United States government within this state shall be required to carry out the provisions set out in this article for such sales or deliveries.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §731.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39002,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38150,"codeId":18974,"versionId":15061,"parentId":18884,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25-19","shortTitle":"Section 40-25-19","catchLine":"Transporting and Distributing Tobacco Products.","title":"Section 40-25-19 Transporting and Distributing Tobacco Products.","sectionRange":null,"content":"Each and every person, firm, corporation, club, or association transporting and distributing in any manner whatsoever any tobacco products as enumerated and defined herein within the State of Alabama who has not a privilege license as prescribed in Sections 40-12-72 and 40-12-73 shall before transporting or distributing any of such tobacco products as enumerated and defined herein secure a permit from the Department of Revenue. The Department of Revenue shall, before issuing such permit, charge and collect annually a fee of $50 from each such person, firm, corporation, club, or association for transporting or distributing in any manner whatsoever any tobacco products as enumerated and defined herein. Each person, firm, corporation, club, or association securing a permit as hereinbefore provided for, shall be allowed for each such permit so secured one vehicle for the purpose of transporting or distributing such tobacco products as enumerated herein, and said permit and fee is required of such person, firm, corporation, club, or association for each vehicle which is so operated. Said permit shall be transferable as to person or vehicle under rules and regulations promulgated by the Department of Revenue. The permit provided herein shall be conspicuously displayed on each vehicle so used or operated. Failure to properly display the permit as hereinbefore required shall be deemed a violation of this section. Any person, firm, corporation, club, or association having been issued a permit who engages in any practices which are deemed by the Department of Revenue to obstruct or prevent in any way the collection of the tax provided herein, may have their permit revoked by the Department of Revenue and no further permit shall be issued for six months and not then unless the Department of Revenue deems it advisable and expedient to do so. Duplicate permit cards will be issued to replace permits lost or damaged upon application and the payment of a fee of $1. Any person, firm, corporation, club, or association found transporting or distributing any tobacco products defined herein, without first securing a permit as provided above, shall be deemed a violator of this section and upon conviction shall be punishable by a fine of not more than $1,000 for each such offense.
","history":"(Acts 1935, No. 194, p. 256; Acts 1939, No. 665, p. 1058, §1; Code 1940, T. 51, §733; Acts 1951, No. 983, p. 1658.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39004,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38151,"codeId":18978,"versionId":37246,"parentId":18884,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25-20","shortTitle":"Section 40-25-20","catchLine":"Reusing or Refilling Boxes, Packages and Containers.","title":"Section 40-25-20 Reusing or Refilling Boxes, Packages and Containers.","sectionRange":null,"content":"Any person, firm, corporation, club, or association of persons, who shall reuse or refill with any tobacco products enumerated herein any box, package or container from which tobacco products theretofore tax-paid have been removed, or who otherwise violates any provision of this chapter, may be subject to a department imposed penalty of not less than five hundred dollars ($500) nor more than one thousand dollars ($1,000). This penalty is multiplied by the number of violations of this section.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §737; Act 2014-262, p. 827, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39005,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38152,"codeId":18982,"versionId":15068,"parentId":18884,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25-22","shortTitle":"Section 40-25-22","catchLine":"Effect of Federal Legislation.","title":"Section 40-25-22 Effect of Federal Legislation.","sectionRange":null,"content":"Should the collection of any taxes under this article be prevented by the operation of the provisions of the Constitution of the United States relating to interstate or foreign commerce, the Legislature hereby declares that should the Congress of the United States pass any legislation authorizing the taxation by the states of interstate or foreign commerce, sales, shipments or receipts, or commodities transported therein, or receipts of sales therein, then the provisions of this article shall apply to such sales, shipments or receipts as fully and completely as provided herein as to intrastate sales, shipments and receipts, to the extent that such act or acts of Congress authorizes and permits.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §740.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39006,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38153,"codeId":18986,"versionId":26252,"parentId":18884,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25-23","shortTitle":"Section 40-25-23","catchLine":"Disposition of Funds.","title":"Section 40-25-23 Disposition of Funds.","sectionRange":null,"content":"All revenues collected under the provisions of this article, except as otherwise provided, shall be paid to the Department of Revenue by check or draft made payable to the Treasurer of Alabama, and shall be distributed in the following manner:
(1) All of the revenue derived from the tax levied upon cigarettes by Sections 40-25-2 and 40-25-41 shall be deposited in the State Treasury and 38.82 percent of such revenue shall be divided as follows:
a. Six and six one-hundredths percent to the credit of the State Public Welfare Trust Fund, which is hereby appropriated for general welfare purposes. In this section, “general welfare purposes” means:
1. The administration of public assistance as set out in Sections 38-2-5 and 38-4-1;
2. Services, including supplementation and supplementary services under the federal Social Security Act, to or on behalf of persons to whom such public assistance may be given under Section 38-4-1;
3. Services to and on behalf of dependent, neglected, or delinquent children; and
4. Investigative and referral services to and on behalf of needy persons.
b. Nine and nine one-hundredths percent shall be set apart and used for the following purposes only and in the following order:
1. So much thereof as may be necessary for such purpose is hereby appropriated and shall be used by the State Treasurer to pay at their respective maturities the principal and interest that will mature during the then current fiscal year on all bonds at the time outstanding that may have been issued by the State Industrial Development Authority under the provisions of the following acts:
(i) Acts 1967, No. 231;
(ii) Acts 1971, No. 1420;
(iii) Acts 1973, No. 1039;
(iv) Acts 1975, No. 1217;
(v) Acts 1978, 2nd Ex. Sess., No. 99;
(vi) Acts 1981, No. 81-843;
(vii) Acts 1983, No. 83-925; and
(viii) Acts 1987, No. 87-550.
2. The balance thereafter remaining during each fiscal year shall be paid into a special fund in the State Treasury to be designated the “General and Mental Health Fund,” and is hereby appropriated and shall be distributed as follows:
(i) Thirty-six percent of the said balance shall be expended by the State Health Officer, with the approval of the state Board of Health, for salaries, other expenses and equipment purchases, incident to general health work;
(ii) Fifty-eight percent of the said balance shall be paid to the Department of Mental Health created in Chapter 50 of Subtitle 2 of Title 22, to be expended by the said department for such purposes as it may designate for the provision of mental health services; and
(iii) Six percent of said balance shall be paid to the Alabama Mental Health Board to be expended by said board for such purposes as it may designate for the provision of services to people with an intellectual disability.
c. Twelve and twelve one-hundredths percent shall be set apart and used for the following purposes only and in the following order:
1. So much thereof as may be necessary for such purpose is hereby appropriated to the purpose of acquiring and constructing mental health facilities in the state, and to that end shall be used by the State Treasurer to pay, at their respective maturities, the principal and interest that will mature during the then current fiscal year on whichever of the following may be issued:
(i) Any bonds of the state that may be issued for acquisition and construction of mental health facilities under Amendment 266 of the Constitution of Alabama; or
(ii) Any bonds that may be issued by the Alabama Mental Health Finance Authority under the provisions of Acts 1988, Act No. 88-475.
2. The balance thereafter remaining during each fiscal year shall be paid into a special fund in the State Treasury, designated the “General and Mental Health Fund,” and is hereby appropriated and shall be distributed as follows:
(i) Thirty percent of said balance shall be expended by the State Health Officer, with the approval of the state Board of Health, for salaries, other expenses, and equipment purchases incident to general health work; and
(ii) Seventy percent of the said balance shall be paid to the Department of Mental Health created in Chapter 50 of Subtitle 2 of Title 22, and shall be used by the said department for mental health purposes in the state.
d. Six and six one-hundredths percent shall be set apart and used for the following purposes only and in the following order:
1. So much thereof as may be necessary for such purposes is hereby appropriated and shall be used by the State Treasurer to pay, at their respective maturities, the principal and interest that will mature during the then current fiscal year on all bonds that may be issued by the State Parks Development Authority under the provisions of Acts 1967, No. 272, which provided for the creation of said authority and also provided for the submission of a constitutional amendment to authorize the issuance of general obligation bonds by said authority.
2. The balance thereafter remaining during each fiscal year shall be deposited into a special fund in the State Treasury to be designated the “State Parks Fund” and is hereby appropriated and shall be distributed as follows: Said fund may be expended by the State Director of Conservation at his discretion and with the approval of the Governor for salaries, other expenses, land acquisitions, equipment purchases, capital additions or improvements, or other lawful expenses relating to the state division of parks, monuments, and historical sites.
e. Sixty-six and sixty-seven one-hundredths percent to the credit of the General Fund.
(2) The remaining 61.18 percent of the revenue derived from the tax levied on cigarettes by Sections 40-25-2 and 40-25-41 shall be deposited into the State Treasury and allocated as follows:
a. Up to $2 million received annually shall be allocated to the various counties of the state levying a cigarette tax to offset the administrative expenses of obtaining local stamps to affix to cigarettes sold in their jurisdiction for the purpose of collecting their local cigarette tax and to provide a discount to wholesalers and jobbers for affixing such stamps. These funds shall be distributed by the Comptroller pro rata based on the actual administrative expenses reported to the Comptroller by the counties at the conclusion of each quarter of the fiscal year. The Comptroller shall insure that such funds are distributed as soon as possible following the receipt of such reports. Failure of any county to submit such a report shall not prohibit the Comptroller from distributing funds to the remaining counties.
b. Remaining revenues to the General Fund to be used for Medicaid services.
(3) All of the revenue derived from the tax levied by Sections 40-25-2 and 40-25-41 upon tobacco products other than cigarettes shall be deposited in the State Treasury to the credit of the State General Fund.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §741; Acts 1955, 2nd Ex. Sess., No. 73, p. 188, §2; Acts 1959, 2nd Ex. Sess., No. 101, p. 318, §3; Acts 1965, No. 654, p. 1177, §3; Acts 1967, No. 230, p. 599; Acts 1967, No. 275, p. 784, §3; Acts 1967, No. 309, p. 850, §3; Acts 1969, No. 168, p. 453; Acts 1969, No. 551, p. 1034, §3; Acts 1971, No. 1402, p. 2362; Acts 1973, No. 819, p. 1285; Acts 1973, No. 1021, p. 1558; Acts 1975, No. 1175, p. 2306; Acts 1978, 2nd Ex. Sess., No. 100, p. 1813; Acts 1981, 3rd Ex. Sess., No. 81-1141, p. 419; Acts 1983, 4th Ex. Sess., No. 83-922, p. 202; Acts 1984, No. 84-309, p. 684, §2; Acts 1987, No. 87-554, p. 857; Acts 1988, No. 88-78, p. 79; Acts 1988, No. 88-476, p. 749; Act 99-650, 2nd Sp. Sess., p. 96, §1; Act 2004-545, p. 1157, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39007,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38154,"codeId":18992,"versionId":15075,"parentId":18884,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25-24","shortTitle":"Section 40-25-24","catchLine":"Sale, Purchase, Receipt, Etc., of Goods Not Stamped; Penalty.","title":"Section 40-25-24 Sale, Purchase, Receipt, Etc., of Goods Not Stamped; Penalty.","sectionRange":null,"content":"It shall be unlawful for any person, firm, or corporation, except as otherwise provided by law, to sell, purchase, transport, receive, or possess any of the articles taxed under the provisions of this article unless the same has been stamped in the manner required by this article, for the purpose of evading the payment of the taxes on such products. Any person, firm, or corporation violating the provisions of this section shall be guilty of a misdemeanor and upon conviction shall be fined not less than $25 to which a jail sentence of not less than 30 nor more than 60 days may be added.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §742; Acts 1945, No. 368, p. 593, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39008,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38156,"codeId":19000,"versionId":15083,"parentId":18884,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25-26","shortTitle":"Section 40-25-26","catchLine":"Administration and Enforcement of Article; Examination of Books, Records, Etc.","title":"Section 40-25-26 Administration and Enforcement of Article; Examination of Books, Records, Etc.","sectionRange":null,"content":"The Department of Revenue shall administer and enforce the taxes imposed by this article. It shall have the power to enter upon the premises of any taxpayer and to examine, or cause to be examined, by any agent or representative designated by it for that purpose, any books, papers, records, or memoranda, etc., bearing upon the amount of taxes payable, and to secure other information directly or indirectly concerned in the enforcement of this article.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §735.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39010,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38157,"codeId":55222,"versionId":48255,"parentId":18884,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25-26.1","shortTitle":"Section 40-25-26.1","catchLine":"Rulemaking Authority.","title":"Section 40-25-26.1 Rulemaking Authority.","sectionRange":null,"content":"The Department of Revenue may adopt rules to implement and administer this chapter.
","history":"(Act 2022-352, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39011,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38158,"codeId":19004,"versionId":15087,"parentId":18884,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25-27","shortTitle":"Section 40-25-27","catchLine":"Supplies Provided to Department; Expenses Deducted from Collected Taxes.","title":"Section 40-25-27 Supplies Provided to Department; Expenses Deducted from Collected Taxes.","sectionRange":null,"content":"There shall be provided for the use of the Department of Revenue “revenue stamps,” and such blanks, forms, reports, receipts and any and all other things which may be necessary for the proper administration of this article.
Such amount of money as shall be appropriated for each fiscal year by the Legislature to the Department of Revenue with which to pay the salaries, the cost of operation and the management of the said department shall be deducted, as a first charge thereon, from the taxes collected under and pursuant to Section 40-25-2; provided, that the expenditure of said sum so appropriated shall be budgeted and allotted pursuant to Article 4 of Chapter 4 of Title 41, and limited to the amount appropriated to defray the expenses of operating said department for each fiscal year.
","history":"(Acts 1951, No. 844, p. 1475.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39012,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38159,"codeId":19007,"versionId":15090,"parentId":18884,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25-28","shortTitle":"Section 40-25-28","catchLine":"Effect of Article on Other Sections.","title":"Section 40-25-28 Effect of Article on Other Sections.","sectionRange":null,"content":"Nothing in this article shall be construed as affecting Sections 40-12-72 and 40-12-73.
","history":"(Acts 1935, No. 194, p. 256; Code 1940, T. 51, §743.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39013,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38161,"codeId":19029,"versionId":null,"parentId":18883,"effectiveDate":null,"supersessionDate":null,"type":"Article","displayId":"2","shortTitle":"Article 2","catchLine":"Use Tax.","title":"Article 2 Use Tax.","sectionRange":"§40-25-40 to §40-25-47","content":null,"history":null,"numChildren":6,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":39015,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38162,"codeId":19033,"versionId":15110,"parentId":19029,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25-40","shortTitle":"Section 40-25-40","catchLine":"Definitions.","title":"Section 40-25-40 Definitions.","sectionRange":null,"content":"For the purpose of this article, the following terms shall have the respective meanings ascribed to them in this section:
(1) PERSON. Any individual, firm, company, partnership, association, corporation, receiver or trustee, or any other group or combination acting as a unit, and the plural as well as the singular number.
(2) DEPARTMENT. The Department of Revenue of the State of Alabama.
(3) COMMISSIONER. The Commissioner of Revenue of the State of Alabama.
(4) STORAGE. Any keeping or retention in this state for any purpose except sale in the regular course of business or subsequent use solely outside this state of the commodities subject to the provisions of this article.
(5) USE. The exercise of any right or power over the commodities subject to the provisions of this article, incident to the ownership of those commodities or by any transaction where possession is given; except, that it shall not include the sale of those commodities in the regular course of business.
(6) IN THIS STATE. Within the exterior limits of the State of Alabama, and includes all territory within such limits owned by or ceded to the United States of America.
(7) TOBACCO PRODUCT. Cigars, cheroots, stogies, cigarettes, smoking tobacco, chewing tobacco, snuff or tobacco in any form or condition or any substitute therefor.
(8) RETAIL SALE or SALE AT RETAIL. All sales except sales by wholesalers to licensed retail dealers or other wholesalers for resale.
(9) REGISTERED TAXPAYER. Any person who purchases tobacco products subject to the tax imposed by this article and who has been registered by the department as a responsible taxpayer.
","history":"(Acts 1939, No. 409, p. 538; Code 1940, T. 51, §744; Acts 1953, No. 747, p. 1009.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39016,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38163,"codeId":19037,"versionId":15114,"parentId":19029,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25-41","shortTitle":"Section 40-25-41","catchLine":"Levied; Amount; Liability for Payment; Registration as Responsible Taxpayers; Seizure of Contraband.","title":"Section 40-25-41 Levied; Amount; Liability for Payment; Registration as Responsible Taxpayers; Seizure of Contraband.","sectionRange":null,"content":"An excise tax is hereby imposed on the storage, use or other consumption in this state of tobacco products purchased at retail in an amount equal to that set out in Section 40-25-2 or to any additional amount or amounts of tobacco sales tax as may be otherwise levied or provided by law.
Every person storing, using, or otherwise consuming in this state tobacco products purchased at retail shall be liable for the tax imposed by this article, and the liability shall not be extinguished until the tax has been paid to this state; provided, that if said tobacco products have attached thereto the stamps provided in said Section 40-25-2 as aforesaid, or as otherwise provided by law, or if said tax imposed by said Section 40-25-2 as aforesaid, or to any additional amount or amounts of tobacco sales tax as may be otherwise levied or provided by law has been paid by the seller of such tobacco products, then the tax imposed by this article shall not be due. Every person who shall purchase tobacco products subject to the tax imposed by this article shall register with the Department of Revenue as a responsible taxpayer subject to the obligation of maintaining records and making returns, and shall furnish his name and address and the address at which tobacco products are received if that address is different from his permanent address and shall furnish such other information as the commissioner shall deem appropriate for the administration of this article.
All tobacco products subject to the tax imposed by this article and with respect to which the tax has not been paid are declared to be contraband and may be seized without warrant by the commissioner or his agents or employees or by any peace officer of this state, and confiscated as provided in Section 40-25-8, and in such case the tax shall become immediately due; except, that tobacco products in the possession of a registered taxpayer, as defined in this article, shall not be deemed contraband and subject to seizure and confiscation unless the time for making the report required by Section 40-25-42 has expired.
Every person subject to the tax imposed by this article who fails to register with the Department of Revenue as a responsible taxpayer; or every person owning or possessing tobacco products declared to be contraband under this section shall be deemed a violator of this article and may be required to pay a penalty of not less than $25 nor more than $500.
","history":"(Acts 1939, No. 409, p. 538; Code 1940, T. 51, §745; Acts 1953, No. 748, p. 1010; 1959, 2nd Ex. Sess., No. 129, p. 380, §1; Acts 1992, No. 92-186, p. 349, §72.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39017,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38164,"codeId":19040,"versionId":15117,"parentId":19029,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25-42","shortTitle":"Section 40-25-42","catchLine":"Returns.","title":"Section 40-25-42 Returns.","sectionRange":null,"content":"Every person owning or having in his possession or custody tobacco products, the storage, use or other consumption of which is subject to the tax imposed by this article, shall on or before the tenth day of the month following file with the department a return for the preceding month in such form as may be prescribed by the department showing the tobacco products purchased by such person, and such other information as the department may deem necessary for the proper administration of this article. The return shall be accompanied by a remittance of the amount of tax herein imposed.
","history":"(Acts 1939, No. 409, p. 538; Code 1940, T. 51, §746.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39018,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38165,"codeId":19045,"versionId":15122,"parentId":19029,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25-45","shortTitle":"Section 40-25-45","catchLine":"Lien.","title":"Section 40-25-45 Lien.","sectionRange":null,"content":"The tax herein levied shall constitute a debt due the State of Alabama and may be collected by civil suit in addition to the methods herein provided. The tax herein shall be secured by a lien, superior to all other liens except the liens for state, county and city ad valorem taxes upon the personal property of any person subject to the provisions hereof.
","history":"(Acts 1939, No. 409, p. 538; Code 1940, T. 51, §749.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39019,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38166,"codeId":19048,"versionId":15125,"parentId":19029,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25-46","shortTitle":"Section 40-25-46","catchLine":"Records.","title":"Section 40-25-46 Records.","sectionRange":null,"content":"It shall be the duty of every person storing, using or otherwise consuming in this state tobacco products subject to the provisions of this article to keep and preserve all invoices, books, papers, cancelled checks, or other memoranda touching the purchase, sale, exchange, receipt, ownership, storage, use, or other consumption of such tobacco products. All such invoices, books, papers, cancelled checks, or other memoranda shall be subject to audit and inspection by any duly authorized representative of the Department of Revenue at any and all reasonable times. Any person who fails or refuses to keep and preserve the records as herein required or who upon request by a duly authorized agent of the Department of Revenue fails or refuses to allow an audit or inspection of the records as herein provided shall be guilty of a misdemeanor and upon conviction therefor be punished as in case of conviction for a misdemeanor.
","history":"(Acts 1939, No. 409, p. 538; Code 1940, T. 51, §750; Acts 1992, No. 92-186, p. 349, §73.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39020,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38167,"codeId":19051,"versionId":15128,"parentId":19029,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25-47","shortTitle":"Section 40-25-47","catchLine":"Disposition of Funds.","title":"Section 40-25-47 Disposition of Funds.","sectionRange":null,"content":"All revenue collected under the provisions of this article shall be paid to the Department of Revenue, and shall be distributed as is provided for the distribution of funds in Section 40-25-23.
","history":"(Acts 1939, No. 409, p. 538; Code 1940, T. 51, §751; Acts 1955, 2nd Ex. Sess., No. 73, p. 188, §3.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39021,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38168,"codeId":19056,"versionId":null,"parentId":18883,"effectiveDate":null,"supersessionDate":null,"type":"Article","displayId":"3","shortTitle":"Article 3","catchLine":"Excise Tax on Cigarettes.","title":"Article 3 Excise Tax on Cigarettes.","sectionRange":null,"content":null,"history":null,"numChildren":0,"isBranchNode":true,"isEmptyBranch":true,"isContentNode":false,"sortOrder":39022,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38169,"codeId":47342,"versionId":null,"parentId":18883,"effectiveDate":null,"supersessionDate":null,"type":"Article","displayId":"4","shortTitle":"Article 4","catchLine":"Indian Reservation Tobacco Vendors.","title":"Article 4 Indian Reservation Tobacco Vendors.","sectionRange":"§40-25-70","content":null,"history":null,"numChildren":1,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":39023,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38170,"codeId":47343,"versionId":39423,"parentId":47342,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25-70","shortTitle":"Section 40-25-70","catchLine":"Refund of Tobacco Taxes.","title":"Section 40-25-70 Refund of Tobacco Taxes.","sectionRange":null,"content":"(a) For the purpose of this article, the following terms shall have the respective meanings ascribed by this section:
(1) DEPARTMENT. The Alabama Department of Revenue.
(2) FEDERALLY RECOGNIZED INDIAN TRIBE. A tribe that is acknowledged by the U.S. Department of Interior, Bureau of Indian Affairs as being an Indian Nation or Tribe.
(3) OTHER TOBACCO PRODUCTS. Smoking tobacco, cigars, stogies, cheroots, chewing tobacco, snuff, and other products taxable under this chapter excluding cigarettes.
(4) RESERVATION. a. All land within the limits of any Indian reservation under the jurisdiction of the United States Government, notwithstanding the issuance of any patent, and, including rights-of-way running through the reservation; b. all dependent Indian communities within the borders of the United States whether within the original or subsequently acquired territory thereof, and whether within or without the limits of a state; and c. all Indian allotments, the Indian titles to which have not been extinguished, including rights-of-way running through the same.
(5) RESERVATION TOBACCO VENDOR. A seller of tobacco products which is an Indian nation or tribe, one or more members of such tribe, or an entity wholly owned by either or both, which sells cigarettes or other tobacco products, or both, within the boundaries of a qualified reservation.
(6) TRIBAL MEMBER. A person duly enrolled on the tribal rolls of a federally recognized Indian tribe located within the State of Alabama.
(b) A permitted wholesaler is required to stamp all packages of cigarettes and pay the applicable other tobacco product taxes on the monthly tax return for tobacco product sold to a reservation tobacco vendor in this state. A reservation tobacco vendor is eligible for a refund of the tobacco taxes paid on cigarettes or other tobacco products, or both, when these tobacco products are sold to tribal members of legal smoking age as specified in Chapter 11 of Title 28. The reservation tobacco vendor may submit a monthly refund petition with supporting documentation to the department. The documentation must include the reservation tobacco vendor’s name, address, number of tribal members of legal smoking age, permitted wholesaler’s name, date purchased, quantity purchased, quantity sold, brand of cigarettes or description of other tobacco products, or both.
(1) Refunds will be allowed to reservation tobacco vendors for tobacco products purchased on or after October 1, 2015, upon submission of properly completed refund petitions and supporting documentation. The reservation tobacco vendor shall have two years from the date of sale of tobacco products to apply to the department for the refund.
(2) The number of cigarettes subject to refund in any fiscal year purchased by tribal members within the boundaries of a federally recognized Indian tribe shall not exceed 14,600 cigarettes annually or prorated monthly for each tribal member of legal smoking age.
(3) No refund is allowed to tribal members for tobacco products purchased at other retailers located off the reservation.
","history":"(Act 2015-535, 2nd Sp. Sess., §3.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39024,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38171,"codeId":19063,"versionId":null,"parentId":40,"effectiveDate":null,"supersessionDate":null,"type":"Chapter","displayId":"25A","shortTitle":"Chapter 25A","catchLine":"Tax on Gummed Cigarette Papers.","title":"Chapter 25A Tax on Gummed Cigarette Papers.","sectionRange":"§40-25A-1 to §40-25A-20","content":null,"history":null,"numChildren":11,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":39032,"hierarchyLevel":1,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38172,"codeId":19064,"versionId":15139,"parentId":19063,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25A-1","shortTitle":"Section 40-25A-1","catchLine":"Definitions.","title":"Section 40-25A-1 Definitions.","sectionRange":null,"content":"For the purposes of this chapter, the following terms shall have the respective meanings ascribed to them by this section:
(1) PERSON. Individuals, firms, corporations, partnerships, companies, or other agencies, associations, incorporated or otherwise, singular or plural.
(2) WHOLESALE SALE. A sale of tangible personal property by wholesalers to licensed retail merchants, jobbers, dealers, or other wholesalers for resale and does not include a sale by wholesalers to users or consumers, not for resale.
(3) NET TAX PROCEEDS. The entire proceeds from the tax herein levied less cost of collection, refunds, grants and credits as may be authorized by law.
(4) STATE. The State of Alabama.
(5) DEPARTMENT. The Department of Revenue of the State of Alabama.
(6) COMMISSIONER. The Commissioner of the Department of Revenue of the State of Alabama.
","history":"(Acts 1980, No. 80-700, p. 1406, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39033,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38173,"codeId":19071,"versionId":15144,"parentId":19063,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25A-2","shortTitle":"Section 40-25A-2","catchLine":"Tax Levied; Amount.","title":"Section 40-25A-2 Tax Levied; Amount.","sectionRange":null,"content":"There is hereby levied a tax of $.25 per package on all gummed cigarette papers sold at wholesale in this state or imported into this state for use, consumption, or sale at retail.
","history":"(Acts 1980, No. 80-700, p. 1406, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39034,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38174,"codeId":19076,"versionId":15149,"parentId":19063,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25A-3","shortTitle":"Section 40-25A-3","catchLine":"License Required.","title":"Section 40-25A-3 License Required.","sectionRange":null,"content":"Before any person engages in the business of selling any of these items on which the tax levied by this chapter has not been paid to the Department of Revenue, such person shall make application to the Department of Revenue upon forms prepared by the department for a license. Said license shall be a condition precedent to engaging or continuing in the business of selling those items taxed under this chapter.
","history":"(Acts 1980, No. 80-700, p. 1406, §3.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39035,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38175,"codeId":19077,"versionId":15150,"parentId":19063,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25A-4","shortTitle":"Section 40-25A-4","catchLine":"Monthly Statement and Remittance of Tax.","title":"Section 40-25A-4 Monthly Statement and Remittance of Tax.","sectionRange":null,"content":"On or before the twentieth day of each month each person on whom the tax levied by this chapter is imposed shall render to the Department of Revenue on forms prescribed by the department a true and correct statement showing the amounts utilized in the measurement of the tax and such other information as the department may require and shall pay to the department the amount of tax shown due.
","history":"(Acts 1980, No. 80-700, p. 1406, §4.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39036,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38176,"codeId":19079,"versionId":15151,"parentId":19063,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25A-6","shortTitle":"Section 40-25A-6","catchLine":"Penalty for Failure to Report or Keep Records.","title":"Section 40-25A-6 Penalty for Failure to Report or Keep Records.","sectionRange":null,"content":"Any person subject to this chapter who shall fail to make any report required of them by the Department of Revenue or shall fail to keep any of the records required herein shall be guilty of a Class B misdemeanor. Each month of such failure shall constitute a separate offense.
","history":"(Acts 1980, No. 80-700, p. 1406, §6.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39037,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38177,"codeId":19082,"versionId":15153,"parentId":19063,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25A-12","shortTitle":"Section 40-25A-12","catchLine":"Effect on Other Licenses and Taxes.","title":"Section 40-25A-12 Effect on Other Licenses and Taxes.","sectionRange":null,"content":"The tax imposed by this chapter shall be in addition to all other licenses and taxes levied by law as a condition precedent to engaging in any business taxable hereunder.
","history":"(Acts 1980, No. 80-700, p. 1406, §12.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39038,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38178,"codeId":19087,"versionId":15156,"parentId":19063,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25A-15","shortTitle":"Section 40-25A-15","catchLine":"Restraint of Violators from Continuing in Business.","title":"Section 40-25A-15 Restraint of Violators from Continuing in Business.","sectionRange":null,"content":"Any taxpayer who shall violate any of the provisions of this chapter may be restrained from continuing in business, and the proper prosecution shall be instituted in the name of the State of Alabama by its Attorney General, by the counsel of the department or under their direction by any circuit solicitor of the state until such person shall have complied with the provisions of this chapter.
","history":"(Acts 1980, No. 80-700, p. 1406, §15.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39039,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38179,"codeId":19092,"versionId":15161,"parentId":19063,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25A-16","shortTitle":"Section 40-25A-16","catchLine":"Enforcement of Chapter; Promulgation of Rules and Regulations.","title":"Section 40-25A-16 Enforcement of Chapter; Promulgation of Rules and Regulations.","sectionRange":null,"content":"The Department of Revenue is hereby charged with the enforcement of the provisions of this chapter and is hereby authorized and empowered to prescribe, adopt, promulgate and enforce, rules and regulations, relating to any matter or thing pertaining to the administration and enforcement of the provisions of this chapter, and the collection of taxes, penalties and interest imposed by this chapter.
","history":"(Acts 1980, No. 80-700, p. 1406, §16.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39040,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38180,"codeId":19096,"versionId":15163,"parentId":19063,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25A-17","shortTitle":"Section 40-25A-17","catchLine":"Extensions for Making Returns Authorized.","title":"Section 40-25A-17 Extensions for Making Returns Authorized.","sectionRange":null,"content":"The department for good cause may grant up to a 30 day extension for the time for making any return required under the provisions of this chapter.
","history":"(Acts 1980, No. 80-700, p. 1406, §17.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39041,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38181,"codeId":19100,"versionId":15166,"parentId":19063,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25A-19","shortTitle":"Section 40-25A-19","catchLine":"Disposition of Proceeds.","title":"Section 40-25A-19 Disposition of Proceeds.","sectionRange":null,"content":"All taxes or other funds received or collected by the department under the provisions of this chapter shall be deposited in the Treasury without delay.
","history":"(Acts 1980, No. 80-700, p. 1406, §19.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39042,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38182,"codeId":19107,"versionId":15172,"parentId":19063,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-25A-20","shortTitle":"Section 40-25A-20","catchLine":"Deduction of Operating Expenses.","title":"Section 40-25A-20 Deduction of Operating Expenses.","sectionRange":null,"content":"Such amount of money as shall be appropriated for each fiscal year by the Legislature to the Department of Revenue with which to pay the salaries, the cost of operation and management of said department shall be deducted, as a first charge thereon, from the taxes collected under the provisions of this chapter; provided, however, that the expenditure of said sum so appropriated shall be budgeted and allotted pursuant to Sections 41-4-80 through 41-4-96, and limited to the amount appropriated to defray the expenses of operating said department for each fiscal year.
","history":"(Acts 1980, No. 80-700, p. 1406, §20.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39043,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38183,"codeId":19113,"versionId":null,"parentId":40,"effectiveDate":null,"supersessionDate":null,"type":"Chapter","displayId":"26","shortTitle":"Chapter 26","catchLine":"Transient Occupancy Tax.","title":"Chapter 26 Transient Occupancy Tax.","sectionRange":"§40-26-1 to §40-26-21","content":null,"history":null,"numChildren":15,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":39044,"hierarchyLevel":1,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38184,"codeId":19114,"versionId":43542,"parentId":19113,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26-1","shortTitle":"Section 40-26-1","catchLine":"Tax Imposed; Exemptions; Definitions.","title":"Section 40-26-1 Tax Imposed; Exemptions; Definitions.","sectionRange":null,"content":"(a) There is levied and imposed, in addition to all other taxes of every kind now imposed by law, a privilege or license tax upon every person, firm, or corporation engaging in the business of renting or furnishing any room or rooms, lodging, or accommodations to transients in any hotel, motel, inn, tourist camp, tourist cabin, marine slip, place or space for tent camping, place or space provided for a motor home, travel trailer, self-propelled camper or house car, truck camper, or similar recreational vehicle commonly known as a R.V., or any other place in which rooms, lodgings, or accommodations are regularly furnished to transients for a consideration, in any county which is located in the geographic region comprising the Alabama mountain lakes area, those being Blount, Cherokee, Colbert, Cullman, DeKalb, Etowah, Franklin, Jackson, Lauderdale, Lawrence, Limestone, Madison, Marion, Marshall, Morgan, and Winston, in an amount to be determined by the application of the rate of five percent of the charge for such room, rooms, lodgings, or accommodations, including the charge for use or rental of personal property and services furnished in such room, and the rate of four percent of the charge in every other county. There is exempted from the tax levied under this chapter any rentals or services taxed under Division 1 of Article 1 of Chapter 23 of this title.
(b) The tax shall not apply to rooms, lodgings, or accommodations supplied: (i) For a period of 180 continuous days or more in any place; (ii) by camps, conference centers, or similar facilities operated by nonprofit organizations primarily for the benefit of, and in connection with, recreational or educational programs for children, students, or members or guests of other nonprofit organizations during any calendar year; or (iii) by privately operated camps, conference centers, or similar facilities that provide lodging and recreational or educational programs exclusively for the benefit of children, students, or members or guests of nonprofit organizations during any calendar year.
(c) For purposes of subsection (b): “Children” means individuals under age 21; “student” is defined in accordance with 26 U.S.C. § 151(c)(4), as in effect from time to time or by any successor law; “nonprofit organization” is an organization exempt from federal income tax under 26 U.S.C. § 501(c)(3), as in effect from time to time or any successor law; and “privately operated” refers to any camp, conference center, or similar facility other than those operated by a nonprofit organization as herein defined.
(d) For transactions entered into on or after October 1, 2019, the tax shall not apply to marine slips, places or spaces for tent camping, or places or spaces provided for motor homes, travel trailers, self-propelled campers or house cars, truck campers, or similar recreational vehicles commonly known as R.V.s, which are supplied for a period of 90 continuous days or more in any place.
(e)(1) Charges made for the rental of a ballroom, dining room, club room, sample room, conference room, wedding chapel, or similar room or space that is not intended nor suitable for overnight sleeping purposes and that is not used for overnight sleeping purposes is not subject to the tax levied pursuant to this chapter if the charges for the rental are separately stated by the facility and the room or space is used exclusively as a room or space for a meeting, conference, seminar, club meeting, private party, or similar activity.
(2) The exclusion provided in subdivision (1) applies solely to the transient occupancy tax levied under this chapter and does not apply to any other taxes, licenses, or fees except a separately stated rental charge for a meeting room or other space excluded pursuant to subdivision (1) is also excluded from the tax levied by Chapter 23 of Title 40.
","history":"(Acts 1955, No. 248, p. 586, §1; Acts 1963, No. 269, p. 715, §1; Acts 1979, No. 79-604, p. 1068, §1; Acts 1996, No. 96-498, p. 629, §1; Act 2001-968, 3rd Sp. Sess., p. 865, §1; Act 2001-975, 3rd Sp. Sess., p. 908, §6; Act 2009-144, p. 268, §12; Act 2019-387, §1; Act 2019-487, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39045,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38185,"codeId":58891,"versionId":51089,"parentId":19113,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26-1.1","shortTitle":"Section 40-26-1.1","catchLine":"Duties of Accommodations Intermediary; Annual Report; Exemptions.","title":"Section 40-26-1.1 Duties of Accommodations Intermediary; Annual Report; Exemptions.","sectionRange":null,"content":"(a) This section shall be known and cited as the Alabama Tourism Tax Protection Act of 2024.
(b) For the purposes of this section, the following terms have the following meanings:
(1) ACCOMMODATIONS INTERMEDIARY. Any person, firm, or corporation, other than an accommodations provider, that facilitates renting, furnishing, lodging, or accommodation transactions subject to the tax levied under Section 40-26-1 and charges a room fee or an accommodations fee to the customer, which it retains as compensation for the facilitation. Facilitating transactions include brokering, coordinating, or in any other way arranging for the purchase of the right to use accommodations via a transaction directly, including via one or more payment processors, between a customer and an accommodations provider.
(2) ACCOMMODATIONS PROVIDER. Any person, firm, or corporation engaging in the business of transactions subject to the tax levied under Section 40-26-1 that has an active lodgings tax account with the department and collects and remits lodgings tax on the accommodations that are rented directly by the owner of the accommodation.
(3) HOTEL. Any public lodging establishment that is owned by a single entity or person; contains 15 or more individual sleeping room accommodations; offers rental units with daily or weekly rates; has a central office on the property with specified hours of operation; has a bathroom for each rental unit; is recognized as a hotel in the community in which it is situated; and possesses a permit from the Alabama Department of Public Health to operate as a hotel.
(4) MERCHANT OF RECORD. The legally authorized and responsible entity that processes customer payments for the sale of goods or services within this state.
(5) PROFESSIONAL PROPERTY MANAGEMENT COMPANY. A licensed real estate brokerage firm with a physical storefront location authorized and licensed under Section 34-27-30 to engage in the business of property management services on behalf of property owners.
(6) ROOM CHARGE. The full retail price paid by the guest for an accommodation, including any accommodations fee and any other fees or charges. This includes the charge for use or rental of personal property and services furnished in the room or accommodation.
(c) Except as provided for in subsection (d), the accommodations intermediary shall collect and remit the tax imposed pursuant to this chapter for the facilitation of lodgings transactions subject to the tax levied under Section 40-26-1, and parallel local levies, for transactions occurring on or after January 1, 2025. The tax shall be imposed on the room charge as defined in this section.
(d) When an accommodations intermediary facilitates the transaction on behalf of an accommodations provider as defined in this section, the taxes collected may be remitted to the accommodations provider when there is an executed written agreement or contract specifying the responsible party for remitting the taxes.
(e) An accommodations intermediary collecting and remitting taxes pursuant to subsection (d) shall not be liable for taxes not remitted by the accommodations provider to the Department of Revenue.
(f) In any accommodation in which an accommodations intermediary facilitates the sale of the accommodation, the accommodations intermediary shall separately state the amount of the tax on the bill, invoice, or similar documentation and shall add the tax to the room charge; thereafter, the tax shall be a debt from the customer to the accommodations intermediary.
(g) Every accommodations intermediary and accommodations provider shall annually submit a report prescribed by the Department of Revenue that includes the physical address of each accommodation that was rented or furnished greater than 14 days during the previous year. The report is confidential taxpayer information protected under this section.
(h) The following entities shall be exempt from the provisions of Section 1 of this act:
(1) Professional property management companies that either collect and remit the tax levied pursuant Section 40-26-1, or manage properties leased for a month or more as the principal residence of the tenant.
(2) Hotels that collect and remit the tax levied pursuant to Section 40-26-1.
(3) A destination marketing organization whose primary purpose is the promotion of tourism and receives funding from taxes collected and remitted pursuant to Section 40-26-1.
(4) Providers of accommodations defined under subsection (d) of 40-26-1, that collect and remit the tax levied pursuant to Section 40-26-1.
(i) For any accommodations transactions, subject to the tax levied in Section 40-26-1, through an accommodations intermediary where the accommodations provider has hired a professional property management company to oversee, the professional property management company shall be the merchant of record for the transactions.
(j) The Department of Revenue shall adopt rules for the implementation and administration of this section.
","history":"(Act 2024-334, §§1-3.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39046,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38186,"codeId":19122,"versionId":15179,"parentId":19113,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26-2","shortTitle":"Section 40-26-2","catchLine":"Certain Municipal Privilege License Taxes Excluded in Computation of Tax.","title":"Section 40-26-2 Certain Municipal Privilege License Taxes Excluded in Computation of Tax.","sectionRange":null,"content":"Municipal privilege license taxes which are levied and collected by the application of a flat percentage rate on gross sales or gross receipts from sales, and which are passed on directly by the licensee-seller to the purchaser-consumer or user shall be excluded from gross sales or gross receipts, as the case may be, in the computation of the state lodgings tax levied and imposed by this chapter.
","history":"(Acts 1965, No. 788, p. 1475.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39047,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38187,"codeId":19126,"versionId":44011,"parentId":19113,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26-3","shortTitle":"Section 40-26-3","catchLine":"Taxes Due Monthly; Filing of Reports; Election to File Quarterly, Semi-Annually, or Annually.","title":"Section 40-26-3 Taxes Due Monthly; Filing of Reports; Election to File Quarterly, Semi-Annually, or Annually.","sectionRange":null,"content":"(a) The taxes levied under this chapter, except as otherwise provided in subsection (b), shall be due and payable in monthly installments on or before the twentieth day of the month next succeeding the month in which the tax accrues. On or before the twentieth day of each month after this chapter has taken effect, every person, firm, or corporation on whom the taxes levied by this chapter are imposed shall render to the Department of Revenue, hereinafter referred to as the department, on a form prescribed by the department, a true and correct statement showing the gross proceeds of the business for the next preceding month, together with such other information as the department may demand and require, and at the time of making such monthly report the taxpayer shall compute the taxes due and shall pay to the department the amount of taxes shown to be due.
(b) Taxpayers meeting the criteria set forth in this subsection may elect to file quarterly, semi-annually, or annually. Any such election to file quarterly, semi-annually, or annually shall be made in writing no later than February 20 of each year and shall be filed with the department in the manner prescribed by the department. The department, for good cause, may extend the time for making any return required under this chapter, but the time for filing any such return shall not be extended for a period greater than 30 days from the date such return is due to be made. Qualifying taxpayers electing to file quarterly, semi-annually, or annually, shall report to the department, on a form prescribed by the department, a true and correct statement showing such information as the department may require. Qualifying taxpayers shall pay to the department the amount of tax shown to be due on or before the applicable deadlines, under any rules as may be prescribed, as follows:
(1) When the total state transient occupancy tax for which any person is liable under this chapter is less than two thousand four hundred dollars ($2,400) during the preceding calendar year, the person may elect to file quarterly returns. Quarterly returns and the amount of tax shown to be due shall be due on or before the 20th day of the month next succeeding the end of the quarter for which the tax is due.
(2) When the total state transient occupancy tax for which any person is liable under this chapter is less than one thousand two hundred dollars ($1,200) during the preceding calendar year or the person liable for the tax has provided accommodations during no more than two, 30 consecutive day periods during the preceding calendar year, the person may elect to file semi-annual returns. The semi-annual returns and payment of the tax shown to be due shall be due on or before July 20 and January 20 following the end of the six-month period for which the tax is due.
(3) When the total state transient occupancy tax for which any person is liable under this chapter is less than six hundred dollars ($600) for the preceding calendar year or the person liable for the tax provides accommodations during no more than one, 30 consecutive day period during the preceding calendar year, the person may elect to file an annual return. The annual return and payment of the tax shown to be due shall be due on or before January 20 following the end of the annual period for which the tax is due.
","history":"(Acts 1955, No. 248, p. 586, §2; Act 2019-253, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39048,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38188,"codeId":19131,"versionId":15184,"parentId":19113,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26-4","shortTitle":"Section 40-26-4","catchLine":"Cash and Credit Businesses.","title":"Section 40-26-4 Cash and Credit Businesses.","sectionRange":null,"content":"Any person, firm or corporation taxable under this chapter having a cash and credit business may report such cash business and the taxpayer shall thereafter include in each monthly report all credit collections made during the month preceding and shall pay the taxes due thereon at the time of filing such report, but in no event shall the gross proceeds of such credit business be included in the measure of the tax to be paid until collections of such credit business shall have been made.
","history":"(Acts 1955, No. 248, p. 586, §3.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39049,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38189,"codeId":19134,"versionId":15187,"parentId":19113,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26-5","shortTitle":"Section 40-26-5","catchLine":"Annual Return and Payment.","title":"Section 40-26-5 Annual Return and Payment.","sectionRange":null,"content":"On or before 30 days after the end of the tax year, each person, firm or corporation liable for the payment of a privilege tax as levied by this chapter shall make a return showing the gross proceeds of business done and compute the amount of tax chargeable against him or it in accordance with the provisions of this chapter and deduct the amount of monthly payments as hereinbefore provided, if any have been made, and transmit with this report a remittance in the form required by this chapter covering the residue of the tax chargeable against him, to the office of the department, and such report shall be verified by oath.
","history":"(Acts 1955, No. 248, p. 586, §4.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39050,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38190,"codeId":19139,"versionId":15192,"parentId":19113,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26-7","shortTitle":"Section 40-26-7","catchLine":"Verification of Reports.","title":"Section 40-26-7 Verification of Reports.","sectionRange":null,"content":"The monthly reports herein required to be made are not required to be made on oath, but wherever in this chapter any report is required to be sworn to, the same shall be sworn to by the taxpayer or his agent before some officer authorized to administer oaths; and any false statement of a material fact made with intent to defraud shall constitute perjury, and upon conviction thereof the person so convicted shall be punishable as provided by law.
","history":"(Acts 1955, No. 248, p. 586, §6.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39051,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38191,"codeId":19145,"versionId":15199,"parentId":19113,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26-8","shortTitle":"Section 40-26-8","catchLine":"Failure to Make Reports and Keep Records.","title":"Section 40-26-8 Failure to Make Reports and Keep Records.","sectionRange":null,"content":"Any person, firm or corporation subject to the provisions of this chapter who fails to make the reports or any of them as herein required, or who fails to keep the records as herein required, shall be guilty of a misdemeanor and upon conviction shall be fined not less than $25 nor more than $500 for each offense. Each month of such failure shall constitute a separate offense.
","history":"(Acts 1955, No. 248, p. 586, §7.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39052,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38192,"codeId":19156,"versionId":15203,"parentId":19113,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26-9","shortTitle":"Section 40-26-9","catchLine":"Willful Refusal to Make Reports or Permit Examination of Records.","title":"Section 40-26-9 Willful Refusal to Make Reports or Permit Examination of Records.","sectionRange":null,"content":"Any person, firm or corporation subject to the provisions of this chapter willfully refusing to make the reports herein required, or who shall refuse to permit the examination of his or its records by the Department of Revenue, or its duly authorized agents, shall be guilty of a misdemeanor, and upon conviction shall be fined not less than $50 nor more than $500 for each offense, and in addition may be imprisoned in the county jail for a period not to exceed six months. Each month of failure to make such report shall constitute a separate offense and each refusal of a written demand of the department to examine, inspect or audit such records shall constitute a separate offense.
","history":"(Acts 1955, No. 248, p. 586, §8.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39053,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38193,"codeId":19161,"versionId":15207,"parentId":19113,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26-16","shortTitle":"Section 40-26-16","catchLine":"Failure to Add Tax to Price of Service; Refund or Absorption of Tax Prohibited.","title":"Section 40-26-16 Failure to Add Tax to Price of Service; Refund or Absorption of Tax Prohibited.","sectionRange":null,"content":"It shall be unlawful for any person, firm or corporation engaged in or continuing within this state in any business for which a license or privilege tax is required by this chapter to fail or refuse to add to the price of the service rendered the amount due by the taxpayer on account of the tax levied by this chapter. Nor shall any person refund or offer to refund all or any part of the amount collected as tax under this chapter or to absorb such tax or to advertise directly or indirectly the absorption or refund of such tax or any portion of the same. Any person, firm or corporation violating any of the provisions of this section shall be guilty of a misdemeanor and upon conviction shall be fined in a sum not less than $50 nor more than $100, or may be imprisoned in the county jail for not more than six months, or by both such fine and imprisonment, and each act or violation of the provisions of this chapter shall constitute a separate offense.
","history":"(Acts 1955, No. 248, p. 586, §15.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39054,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38194,"codeId":19166,"versionId":15211,"parentId":19113,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26-17","shortTitle":"Section 40-26-17","catchLine":"Violators Restrained from Continuing in Business.","title":"Section 40-26-17 Violators Restrained from Continuing in Business.","sectionRange":null,"content":"Any taxpayer who shall violate any of the provisions of this chapter may be restrained from continuing in business, and the proper prosecution shall be instituted in the name of the State of Alabama by its Attorney General, by the counsel of the department or under their direction by any district attorney of the state until such person shall have complied with the provisions of this chapter.
","history":"(Acts 1955, No. 248, p. 586, §16.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39055,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38195,"codeId":19175,"versionId":15217,"parentId":19113,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26-18","shortTitle":"Section 40-26-18","catchLine":"Administration of Chapter.","title":"Section 40-26-18 Administration of Chapter.","sectionRange":null,"content":"The administration of this chapter is vested in and shall be exercised by the Department of Revenue, except as otherwise herein provided, and the enforcement of any of the provisions of this chapter in any of the courts of the state shall be under the jurisdiction and supervision of the department, and the department may require the assistance of, and act through the district attorney of any county and the Attorney General of the state and any legal counsel of the Department of Revenue. The department shall appoint as needed such agents, clerks and stenographers as may be necessary to enforce the provisions of this chapter under the provisions of the merit system who shall perform such duties as may be required, and such duly appointed and qualified agents are authorized to act for the department as it may direct and as is authorized by law.
","history":"(Acts 1955, No. 248, p. 586, §17.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39056,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38196,"codeId":19179,"versionId":15221,"parentId":19113,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26-19","shortTitle":"Section 40-26-19","catchLine":"Rules and Regulations.","title":"Section 40-26-19 Rules and Regulations.","sectionRange":null,"content":"The department shall from time to time promulgate such rules and regulations for making returns and for ascertainment, assessment and collection of the tax imposed hereunder as it may deem necessary to enforce the provisions of this chapter, and upon request shall furnish to the taxpayer a copy of such rules and regulations.
","history":"(Acts 1955, No. 248, p. 586, §18.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39057,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38197,"codeId":19183,"versionId":15224,"parentId":19113,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26-20","shortTitle":"Section 40-26-20","catchLine":"Disposition of Proceeds of Tax.","title":"Section 40-26-20 Disposition of Proceeds of Tax.","sectionRange":null,"content":"One-fifth of the proceeds of the tax levied by this chapter in counties which are members of the Alabama Mountain Lakes Association, after deduction of an agreed upon cost of collection between the counties involved and the state Department of Revenue, such cost of collection not to exceed five percent, shall be appropriated in the following manner: Fifty percent of said portion shall be appropriated to the Alabama Mountain Lakes Association to be used for promotion of tourism and travel. The remaining fifty percent of said portion shall be paid to the respective counties to be used for the promotion of tourism, recreation and conventions. Said money shall be controlled by the county commission unless local law provides otherwise. The balance of all taxes or other funds received or collected by the department under the provisions of this chapter shall be without delay deposited in the State Treasury. Three-fourths of said balance of the revenue derived under this chapter shall be deposited into the State General Fund, and the remaining one-fourth shall be used exclusively for state travel advertising and travel promotion by the State Bureau of Tourism and Travel from the appropriation made by the Legislature.
","history":"(Acts 1955, No. 248, p. 586, §19; Acts 1963, No. 269, p. 715, §2; Acts 1979, No. 79-604, p. 1068, §2; Acts 1988, 2nd Ex. Sess., No. 88-956, p. 681.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39058,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38198,"codeId":19191,"versionId":15229,"parentId":19113,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26-21","shortTitle":"Section 40-26-21","catchLine":"Allowance of Discount of Taxes.","title":"Section 40-26-21 Allowance of Discount of Taxes.","sectionRange":null,"content":"The Governor may, by executive order, authorize the state Department of Revenue to provide by proper rules and regulations for the allowance of a discount of taxes due and payable to the state by persons subject to the lodgings tax levied by this chapter, in the same manner and to the same extent as the discount allowed persons licensed under the provisions of Division 1 of Article 1 of Chapter 23 of this title. The discount provided for herein shall not exceed five percent of the first $100 of taxes levied and two percent of the taxes levied over $100 and due and payable to the state by persons subject to this chapter. It is provided, however, that the discount provided for herein shall be authorized or allowed only upon taxes which are paid before delinquency.
","history":"(Acts 1956, 1st Ex. Sess., No. 96, p. 142.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39059,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38199,"codeId":19202,"versionId":null,"parentId":40,"effectiveDate":null,"supersessionDate":null,"type":"Chapter","displayId":"26A","shortTitle":"Chapter 26A","catchLine":"Dog Race Track Pari-Mutuel Pool Tax.","title":"Chapter 26A Dog Race Track Pari-Mutuel Pool Tax.","sectionRange":"§40-26A-1 to §40-26A-17","content":null,"history":null,"numChildren":9,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":39060,"hierarchyLevel":1,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38200,"codeId":19203,"versionId":15238,"parentId":19202,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26A-1","shortTitle":"Section 40-26A-1","catchLine":"Definitions.","title":"Section 40-26A-1 Definitions.","sectionRange":null,"content":"For the purpose of this chapter, the following terms shall have the respective meanings ascribed to them by this section except where the context clearly indicates a different meaning:
(1) COMMISSIONER. The Commissioner of the Department of Revenue of the State of Alabama.
(2) DEPARTMENT. The Alabama Department of Revenue.
(3) PARI-MUTUEL. A system of betting on races whereby the winners divide the total amount bet, after deducting authorized taxes, fees and management expenses, in proportion to the sums wagered individually.
(4) PARI-MUTUEL POOL. The total amount wagered under the pari-mutuel betting system in any particular race.
","history":"(Acts 1988, 2nd Ex. Sess., No. 88-952, p. 575, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39061,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38201,"codeId":19209,"versionId":15243,"parentId":19202,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26A-2","shortTitle":"Section 40-26A-2","catchLine":"Tax Levied; Amount.","title":"Section 40-26A-2 Tax Levied; Amount.","sectionRange":null,"content":"(a) In addition to any and all other taxes imposed by law, there is hereby levied, upon every person engaged in the business of operating a dog race track in the State of Alabama, a privilege tax of one percent of the pari-mutuel pool on all pari-mutuel races.
(b) In addition to the tax levied by subsection (a) and in addition to any and all other taxes imposed by law, there is hereby levied, upon every person engaged in the business of operating a dog race track in the State of Alabama, a privilege tax of one percent of the pari-mutuel pool on all pari-mutuel races requiring the selection of three or more racers; provided that the commission received by said operator, after deducting local taxes in effect on September 28, 1988, shall not be reduced below the amount that said operator received prior to the imposition of this tax.
(c) Notwithstanding the provisions of any local or general act to the contrary, any dog race track licensee authorized to conduct pari-mutuel racing shall be entitled to retain as a commission from the pari-mutuel pool (the “take out”) an amount equal to 19 percent of all pari-mutuel pools where a bettor is required to select two or less racers and an amount equal to 21 percent where a bettor is required to select three or more racers. The tax levied in this section is not imposed to the extent that it would require a licensee to increase the commissions above said amounts in order to receive such tax from the pari-mutuel pool.
","history":"(Acts 1988, 2nd Ex. Sess., No. 88-952, p. 575, §2; Acts 1989, No. 89-696, p. 1376.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39062,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38202,"codeId":19213,"versionId":15247,"parentId":19202,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26A-3","shortTitle":"Section 40-26A-3","catchLine":"When Tax Due; Monthly Reports.","title":"Section 40-26A-3 When Tax Due; Monthly Reports.","sectionRange":null,"content":"On or before the twentieth day of each month, every person on whom the taxes levied by this chapter are imposed shall render to the Department of Revenue, on a form prescribed by the department, a true and correct statement showing the pari-mutuel pool gross receipts of his race track operation for the next preceding month, together with such other information as the department may demand and require. At the time of making such monthly report such person shall compute and pay the amount of taxes shown to be due.
","history":"(Acts 1988, 2nd Ex. Sess., No. 88-952, p. 575, §3.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39063,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38203,"codeId":19218,"versionId":15253,"parentId":19202,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26A-5","shortTitle":"Section 40-26A-5","catchLine":"Failure to Make Reports.","title":"Section 40-26A-5 Failure to Make Reports.","sectionRange":null,"content":"Any person subject to this chapter who shall fail to make any report required of him by the Department of Revenue or shall fail to keep any of the records required herein shall be guilty of a Class B misdemeanor. Each month of such failure shall constitute a separate offense.
","history":"(Acts 1988, 2nd Ex. Sess., No. 88-952, p. 575, §5.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39064,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38204,"codeId":19221,"versionId":15256,"parentId":19202,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26A-11","shortTitle":"Section 40-26A-11","catchLine":"Effect on Other Licenses and Taxes.","title":"Section 40-26A-11 Effect on Other Licenses and Taxes.","sectionRange":null,"content":"The taxes imposed by this chapter shall be in addition to all other licenses and taxes levied by law as a condition precedent to engaging in any business taxable hereunder.
","history":"(Acts 1988, 2nd Ex. Sess., No. 88-952, p. 575, §11.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39065,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38205,"codeId":19227,"versionId":15261,"parentId":19202,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26A-14","shortTitle":"Section 40-26A-14","catchLine":"Violators Restrained from Continuing in Business.","title":"Section 40-26A-14 Violators Restrained from Continuing in Business.","sectionRange":null,"content":"Any taxpayer who shall violate any of the provisions of this chapter may be restrained from continuing in business, and the proper prosecution shall be instituted in the name of the State of Alabama by its Attorney General, by the counsel of the department or, under their direction, by any circuit solicitor of the state until such person shall have complied with the provisions of this chapter.
","history":"(Acts 1988, 2nd Ex. Sess., No. 88-952, p. 575, §14.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39066,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38206,"codeId":19232,"versionId":15265,"parentId":19202,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26A-15","shortTitle":"Section 40-26A-15","catchLine":"Writ of Injunction Authorized.","title":"Section 40-26A-15 Writ of Injunction Authorized.","sectionRange":null,"content":"If it is brought to the attention of the department that any taxpayer subject to this chapter is guilty of violating any of the provisions of this chapter, the department is hereby authorized and required, through lawfully authorized counsel, to proceed in the courts of the state to obtain a writ of injunction, which writ shall be granted by the court when applied for in the manner prescribed by law. The department, however, is hereby relieved of the requirement to furnish bond of any character.
","history":"(Acts 1988, 2nd Ex. Sess., No. 88-952, p. 575, §15.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39067,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38207,"codeId":19237,"versionId":15269,"parentId":19202,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26A-16","shortTitle":"Section 40-26A-16","catchLine":"Enforcement; Rules and Regulations of Chapter.","title":"Section 40-26A-16 Enforcement; Rules and Regulations of Chapter.","sectionRange":null,"content":"The Department of Revenue is hereby charged with the enforcement of the provisions of this chapter and is hereby authorized and empowered to prescribe, adopt, promulgate and enforce, rules and regulations, relating to any matter or thing pertaining to the administration and enforcement of the provisions of this chapter, and the collection of taxes, penalties and interest imposed by this chapter.
","history":"(Acts 1988, 2nd Ex. Sess., No. 88-952, p. 575, §16.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39068,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38208,"codeId":19241,"versionId":15274,"parentId":19202,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26A-17","shortTitle":"Section 40-26A-17","catchLine":"Appropriation for Administration and Enforcement; Disposition of Proceeds of Tax.","title":"Section 40-26A-17 Appropriation for Administration and Enforcement; Disposition of Proceeds of Tax.","sectionRange":null,"content":"(a) Such amount of money as shall be appropriated for each fiscal year by the Legislature to the Department of Revenue with which to pay the salaries, and the cost of operation and management of said department, pertaining to the administration and enforcement of the provisions of this chapter, shall be deducted, as a first charge thereon, from the taxes collected under the provisions of this chapter; provided, however, that the expenditure of said sum so appropriated shall be budgeted and allotted pursuant to Sections 41-4-80 through 41-4-96, and limited to the amount appropriated to defray the expenses of operating said department for each fiscal year.
(b) After payment of the aforesaid expenses, the balance of the taxes collected under the provisions of this chapter shall be deposited in the State Treasury to the credit of the State General Fund.
","history":"(Acts 1988, 2nd Ex. Sess., No. 88-952, p. 575, §17.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39069,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38209,"codeId":19246,"versionId":null,"parentId":40,"effectiveDate":null,"supersessionDate":null,"type":"Chapter","displayId":"26B","shortTitle":"Chapter 26B","catchLine":"Providers of Medical Services Privilege Tax.","title":"Chapter 26B Providers of Medical Services Privilege Tax.","sectionRange":"§40-26B-1 to §40-26B-99","content":null,"history":null,"numChildren":7,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":39070,"hierarchyLevel":1,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38210,"codeId":19248,"versionId":null,"parentId":19246,"effectiveDate":null,"supersessionDate":null,"type":"Article","displayId":"1","shortTitle":"Article 1","catchLine":"Pharmaceutical Services.","title":"Article 1 Pharmaceutical Services.","sectionRange":"§40-26B-1 to §40-26B-9","content":null,"history":null,"numChildren":9,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":39071,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38211,"codeId":19250,"versionId":15279,"parentId":19248,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26B-1","shortTitle":"Section 40-26B-1","catchLine":"Definitions.","title":"Section 40-26B-1 Definitions.","sectionRange":null,"content":"The following words, terms and phrases, when used in this article shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
(1) DEPARTMENT. The Department of Revenue of the State of Alabama.
(2) FISCAL YEAR. An accounting period of 12 months beginning on the first day of the first month of the state fiscal year.
(3) MEDICAID PROGRAM. The medical assistance program as established in Title XIX of the Social Security Act and as administered in the State of Alabama by the Alabama Medicaid Agency pursuant to executive order and Title 560 of the Alabama Administrative Code.
(4) PHARMACEUTICAL PROVIDER. A provider of drugs, medicines, chemicals and poisons which, pursuant to a valid prescription, are offered for sale, compounded or dispensed to citizens of Alabama. This term shall include all places whose title may imply the sale, offering for sale, compounding or dispensing, of drugs, medicines, chemicals or poisons.
(5) PRESCRIPTION. Any order for drugs, biologicals or insulin syringes, written or signed or transmitted by word of mouth, telephone, telegraph, closed circuit television, or other means of communication by a legally competent practitioner, licensed by law to prescribe and administer such drugs, biologicals or insulin syringes intended to be filled, compounded or dispensed by a pharmacist.
","history":"(Acts 1991, No. 91-124, p. 148, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39072,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38212,"codeId":19255,"versionId":25372,"parentId":19248,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26B-2","shortTitle":"Section 40-26B-2","catchLine":"Privilege Tax Upon Providers of Pharmaceutical Services; Exceptions.","title":"Section 40-26B-2 Privilege Tax Upon Providers of Pharmaceutical Services; Exceptions.","sectionRange":null,"content":"To provide further for the availability of indigent health care, the operation of the Medicaid Program and the maintenance and expansion of medical services thereunder, there is hereby levied and shall be collected as provided in this article a privilege tax on the business activities of every provider of pharmaceutical services to the citizens of Alabama, except for a pharmacy, or portion thereof, serving hospital inpatients or pharmacies owned or operated by the State of Alabama or an agency thereof. The privilege tax imposed by this article is in addition to all other taxes of any kind now imposed by law, and shall be at the rate of 10 cents for each prescription filled or refilled for a citizen of Alabama.
","history":"(Acts 1991, No. 91-124, p. 148, §2; Act 2002-414, p. 1058, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39073,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38213,"codeId":19263,"versionId":15286,"parentId":19248,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26B-3","shortTitle":"Section 40-26B-3","catchLine":"Payment and Collection of Tax; Appropriation of Funds and Use by Alabama Medicaid Agency.","title":"Section 40-26B-3 Payment and Collection of Tax; Appropriation of Funds and Use by Alabama Medicaid Agency.","sectionRange":null,"content":"(a) The taxes imposed by this article shall be due and payable to the department on or before the twentieth day of the month next succeeding the month in which the tax accrues, and shall, when collected, be paid by the department into the State Treasury. Payment by United States mail will be timely if mailed in accordance with Section 40-1-45. When paid into the State Treasury, all such taxes shall be deposited to the credit of the Alabama Health Care Trust Fund.
(b) The receipts from the tax levied in this article shall be solely available for appropriation by the Alabama Legislature to the Alabama Medicaid Agency for use by said agency in accomplishing the purposes of this article. Provided, however, for the first fiscal year in which this article is effective, to defray its expenses, including salaries and costs of operation incident to the collection of this tax, there is hereby appropriated to the department and shall be deducted as a first charge thereon, an amount not to exceed one percent of the revenues collected pursuant to this article. Such amount of money as shall be appropriated for each succeeding fiscal year by the Legislature to the department with which to pay the salaries, the cost of operation and the management of the department shall be deducted, as a first charge thereon, from the taxes collected under and pursuant to this article. Provided, however, the expenditure of said sum so appropriated shall be budgeted and allotted pursuant to Article 4 of Chapter 4 of Title 41, and limited to the amount appropriated to defray the expenses of operating the department for each fiscal year, incident to the collection of this tax.
","history":"(Acts 1991, No. 91-124, p. 148, §3.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39074,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38214,"codeId":19268,"versionId":25373,"parentId":19248,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26B-4","shortTitle":"Section 40-26B-4","catchLine":"Filing of Statement; Penalty.","title":"Section 40-26B-4 Filing of Statement; Penalty.","sectionRange":null,"content":"(a) On or before the twentieth of each month, beginning with November 1991, every pharmaceutical provider subject to this article shall file with the department a statement under penalty of perjury on forms prescribed by the department, showing the total number of prescriptions filled or refilled by said provider for the previous month, the taxes due under this article and such other reasonable and necessary information as the department, after consultation with the Alabama Medicaid Agency and adoption of appropriate rules or regulations, may require for the proper enforcement of the provisions of this article. At the time of filing such monthly statement such provider shall pay to the department the amount of taxes shown to be due.
When the total tax for which any pharmaceutical provider liable under this article does not exceed $10 for any month, a quarterly return and remittance in lieu of the monthly returns may be made on or before the twentieth day of the month next succeeding the end of the quarter for which the tax is due when specially authorized by the department and under such rules and regulations as may be prescribed.
(b) Any pharmaceutical provider that fails to pay the taxes levied by this article within the time required by this article shall pay, in addition to the tax, a penalty of 10 percent of the amount of tax due, together with interest thereon at the rate prescribed by Section 40-1-44, such penalty and interest to be assessed and collected as part of the taxes. Provided, however, the department, if a good and sufficient reason is shown, may waive or remit the penalty of 10 percent or a portion thereof. If payment is not received by the last day of the month, the department shall notify the Alabama Medicaid Agency which shall determine whether the pharmaceutical provider is a Medicaid provider, and if so, shall withhold the payment, interest and penalty due from any reimbursement due said provider under the Medicaid Program. The taxes levied by this article shall constitute a debt due the State of Alabama and may be collected by civil action in addition to the methods provided in this article. The department is empowered to assess, file tax liens and collect the taxes levied by this article, as prescribed in this title.
","history":"(Acts 1991, No. 91-124, p. 148, §4(a)(b); Act 2002-414, p. 1058, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39075,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38215,"codeId":19272,"versionId":15293,"parentId":19248,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26B-5","shortTitle":"Section 40-26B-5","catchLine":"Duty to Keep Books and Records; Confidentiality of Information; Rules and Regulations.","title":"Section 40-26B-5 Duty to Keep Books and Records; Confidentiality of Information; Rules and Regulations.","sectionRange":null,"content":"(a) It shall be the duty of each pharmaceutical provider subject to this article to keep and preserve such suitable books and records as may be necessary to determine the amount of taxes for which it is liable under the provisions of this article. Said books and records shall be kept and preserved for a period of not less than three years, and all such books and records shall be open for examination during business hours by the department or its duly authorized agents.
(b) All information secured pursuant to this article by the department shall be confidential, as prescribed by Section 40-2A-10, except that the department may provide such information to the Alabama Medicaid Agency as necessary for the proper administration of the Medicaid Program, or for the department’s proper administration of the tax levied by this article.
(c) The department shall from time to time, as it deems desirable, promulgate such reasonable rules and regulations as necessary to provide for the orderly and efficient administration of the tax levied by this article.
","history":"(Acts 1991, No. 91-124, p. 148, §4(c)-(e).)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39076,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38216,"codeId":19276,"versionId":15297,"parentId":19248,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26B-6","shortTitle":"Section 40-26B-6","catchLine":"Use of Revenues; Reimbursement.","title":"Section 40-26B-6 Use of Revenues; Reimbursement.","sectionRange":null,"content":"(a) The Alabama Medicaid Agency shall use the revenues from the tax levied by this article in furtherance of the purposes of this article, provided that any such uses shall be limited to those for which federal financial participation under Title XIX of the Social Security Act is available.
(b) Any reimbursement due a pharmaceutical provider under the Medicaid Program shall be paid in a timely fashion. If the amount payable is not in dispute and is not paid by the Alabama Medicaid Agency within 30 days of the due date, interest on the amount due shall be charged. The interest shall be the legal amount currently charged by the state.
","history":"(Acts 1991, No. 91-124, p. 148, §5.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39077,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38217,"codeId":19280,"versionId":15300,"parentId":19248,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26B-7","shortTitle":"Section 40-26B-7","catchLine":"Reduction or Elimination of Revenues Prohibited While Tax in Effect.","title":"Section 40-26B-7 Reduction or Elimination of Revenues Prohibited While Tax in Effect.","sectionRange":null,"content":"No revenues resulting from the tax established by this article and applied to increases in covered services or reimbursement levels or other enhancements of the Medicaid Program adopted by the Alabama Medicaid Agency as a result of revenues made available under the tax levied by this article shall be subject to reduction or elimination while said tax is in effect.
","history":"(Acts 1991, No. 91-124, p. 148, §6.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39078,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38218,"codeId":19287,"versionId":15306,"parentId":19248,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26B-8","shortTitle":"Section 40-26B-8","catchLine":"Effect of Article If Federal Financial Participation Is Not Available.","title":"Section 40-26B-8 Effect of Article If Federal Financial Participation Is Not Available.","sectionRange":null,"content":"This article shall be of no effect if federal financial participation under Title XIX of the Social Security Act is not available to the Alabama Medicaid Program for the purposes of this article at the approved federal medical assistance percentage, established under Section 1905 of the Social Security Act, for the applicable fiscal year.
","history":"(Acts 1991, No. 91-124, p. 148, §7.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39079,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38219,"codeId":48828,"versionId":42541,"parentId":19248,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26B-9","shortTitle":"Section 40-26B-9","catchLine":"Refund of Supplemental Privilege Tax.","title":"Section 40-26B-9 Refund of Supplemental Privilege Tax.","sectionRange":null,"content":"(a) Each pharmaceutical service provider that collected and remitted the supplemental privilege tax on pharmaceutical services pursuant to Article 1A, as it read prior to August 30, 2016, shall be entitled to a refund of the taxes collected in the form of a credit against any future taxes levied pursuant to the privilege tax on pharmaceutical services provided for in this article, due after August 30, 2016. Beginning October 1, 2016, monthly credits shall be allowed to the pharmaceutical service providers that remitted the supplemental privilege tax through September 20, 2018.
(b) On or after October 1, 2018, a pharmaceutical service provider who is entitled to a credit under subsection (a) and has unused credit remaining shall be entitled to a refund of the remaining credit owed to the provider, without interest, upon petition to the department. The petition shall be made no later than October 1, 2020. The department shall establish procedures to implement this subsection.
","history":"(Act 2016-452, 1st Sp Sess., p. 1233, §1; Act 2018-95, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39080,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38220,"codeId":47349,"versionId":null,"parentId":19246,"effectiveDate":null,"supersessionDate":null,"type":"Article","displayId":"1A","shortTitle":"Article 1A","catchLine":"Supplemental Privilege Tax. (Repealed)","title":"Article 1A Supplemental Privilege Tax. (Repealed)","sectionRange":"§40-26B-10 to §40-26B-14","content":null,"history":null,"numChildren":5,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":39081,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38221,"codeId":47350,"versionId":39429,"parentId":47349,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26B-10","shortTitle":"Section 40-26B-10","catchLine":"Creation and Imposition of Tax.","title":"Section 40-26B-10 Creation and Imposition of Tax.","sectionRange":null,"content":"REPEALED IN THE 2016 FIRST SPECIAL SESSION BY ACT 2016-452 EFFECTIVE AUGUST 1, 2016. THIS IS NOT IN THE CURRENT CODE SUPPLEMENT.
","history":"(Act 2015-537, 2nd Sp. Sess., §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39082,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38222,"codeId":47351,"versionId":39430,"parentId":47349,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26B-11","shortTitle":"Section 40-26B-11","catchLine":"Legislative Intent.","title":"Section 40-26B-11 Legislative Intent.","sectionRange":null,"content":"REPEALED IN THE 2016 FIRST SPECIAL SESSION BY ACT 2016-452 EFFECTIVE AUGUST 1, 2016. THIS IS NOT IN THE CURRENT CODE SUPPLEMENT.
","history":"(Act 2015-537, 2nd Sp. Sess., §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39083,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38223,"codeId":47352,"versionId":39431,"parentId":47349,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26B-12","shortTitle":"Section 40-26B-12","catchLine":"Request for Increase in Pharmacy Dispensing Fee.","title":"Section 40-26B-12 Request for Increase in Pharmacy Dispensing Fee.","sectionRange":null,"content":"REPEALED IN THE 2016 FIRST SPECIAL SESSION BY ACT 2016-452 EFFECTIVE AUGUST 1, 2016. THIS IS NOT IN THE CURRENT CODE SUPPLEMENT.
","history":"(Act 2015-537, 2nd Sp. Sess., §3.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39084,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38224,"codeId":47353,"versionId":39432,"parentId":47349,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26B-13","shortTitle":"Section 40-26B-13","catchLine":"Reduction in Supplemental Privilege Tax.","title":"Section 40-26B-13 Reduction in Supplemental Privilege Tax.","sectionRange":null,"content":"REPEALED IN THE 2016 FIRST SPECIAL SESSION BY ACT 2016-452 EFFECTIVE AUGUST 1, 2016. THIS IS NOT IN THE CURRENT CODE SUPPLEMENT.
","history":"(Act 2015-537, 2nd Sp. Sess., §4.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39085,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38225,"codeId":47354,"versionId":39433,"parentId":47349,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26B-14","shortTitle":"Section 40-26B-14","catchLine":"Duration of Tax.","title":"Section 40-26B-14 Duration of Tax.","sectionRange":null,"content":"REPEALED IN THE 2016 FIRST SPECIAL SESSION BY ACT 2016-452 EFFECTIVE AUGUST 1, 2016. THIS IS NOT IN THE CURRENT CODE SUPPLEMENT.
","history":"(Act 2015-537, 2nd Sp. Sess., §5.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39086,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38226,"codeId":19295,"versionId":null,"parentId":19246,"effectiveDate":null,"supersessionDate":null,"type":"Article","displayId":"2","shortTitle":"Article 2","catchLine":"Nursing Facilities.","title":"Article 2 Nursing Facilities.","sectionRange":"§40-26B-20 to §40-26B-27","content":null,"history":null,"numChildren":8,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":39087,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38227,"codeId":19298,"versionId":22190,"parentId":19295,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26B-20","shortTitle":"Section 40-26B-20","catchLine":"Definitions.","title":"Section 40-26B-20 Definitions.","sectionRange":null,"content":"The following words, terms, and phrases shall have the following meanings:
(1) BED. Any bed that is licensed by the Alabama Department of Health and its successor agency to provide nursing home care which is in a nursing facility.
(2) DEPARTMENT. The Department of Revenue of the State of Alabama.
(3) FISCAL YEAR. An accounting period of 12 months beginning on the first day of the first month of the state fiscal year.
(4) MEDICAID PROGRAM. The medical assistance program as established in Title XIX of the Social Security Act and as administered in the State of Alabama by the Alabama Medicaid Agency pursuant to executive order and Title 560 of the Alabama Administrative Code.
(5) NURSING FACILITY. An institution which is licensed under the laws of the State of Alabama as a skilled nursing facility or an intermediate nursing facility.
Nursing facility shall not include any facility owned or operated by, or operating under an exclusive contract with, the State of Alabama or any agency thereof, or any nursing facility/institution for the developmentally disabled (NF/IDD).
(6) NURSING FACILITY/INSTITUTION FOR THE DEVELOPMENTALLY DISABLED. A nursing facility that provides care only to physically and mentally disabled residents who are 18 years of age or less.
","history":"(Acts 1991, No. 91-126, p. 153, §1; Acts 1992, No. 92-440, p. 871, §1; Act 97-901, 1st Ex. Sess., p. 277, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39088,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38229,"codeId":19309,"versionId":34587,"parentId":19295,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26B-22","shortTitle":"Section 40-26B-22","catchLine":"Payment and Collection of Privilege Assessment; Appropriation of Funds and Use by Alabama Medicaid Agency.","title":"Section 40-26B-22 Payment and Collection of Privilege Assessment; Appropriation of Funds and Use by Alabama Medicaid Agency.","sectionRange":null,"content":"(a) The privilege assessments imposed by this article shall be due and payable in monthly installments to the department on or before the twentieth day of the month next succeeding the month in which the assessment accrues, and shall, when collected, be paid by the department into the State Treasury. Payment by United States mail will be timely if mailed in accordance with Section 40-1-45. When so paid into the State Treasury, all such privilege assessments shall be deposited to the credit of the Alabama Health Care Trust Fund or any successor fund administered by or on behalf of the Alabama Medicaid Agency.
(b) The receipts from the privilege assessments levied in this article shall be solely available for appropriation by the Alabama Legislature to the Alabama Medicaid Agency for use by the agency in accomplishing the purposes of this article. Provided, however, for the first fiscal year in which this article is effective, to defray its expenses including salaries and costs of operation incident to the collection of this privilege assessment, there is hereby appropriated to the department and shall be deducted as a first charge thereon, an amount not to exceed one percent of the revenues collected pursuant to this article. Such amount of money as shall be appropriated for each succeeding fiscal year by the Legislature to the department with which to pay the salaries, the cost of operation and the management of the department shall be deducted, as a first charge thereon, from the privilege assessments collected under and pursuant to this article. Provided, however, the expenditure of the sum so appropriated shall be budgeted and allotted pursuant to Article 4 of Chapter 4 of Title 41, and limited to the amount appropriated to defray the expenses of operating the department for each fiscal year, incident to the collection of this privilege assessment.
","history":"(Acts 1991, No. 91-126, p. 153, §3; Act 97-901, 1st Ex. Sess., p. 277, §1; Act 2011-614, p. 1376, §1; Act 2012-536, 1589, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39090,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38230,"codeId":19316,"versionId":33552,"parentId":19295,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26B-23","shortTitle":"Section 40-26B-23","catchLine":"Filing of Statement; Privilege Assessment Prorated for Beds Added or Subtracted; Penalty.","title":"Section 40-26B-23 Filing of Statement; Privilege Assessment Prorated for Beds Added or Subtracted; Penalty.","sectionRange":null,"content":"(a) On or before the twentieth of each month, beginning October 1991, each nursing facility subject to this article shall file with the department a statement under penalty of perjury on forms prescribed by the department, showing the total number of beds as of the last day of the previous month, the privilege assessment due under this article, and such other reasonable and necessary information as the department, after consultation with the Alabama Medicaid Agency and adoption of appropriate rules and regulations, may require for the proper enforcement of the provisions of this article. At the time of filing such statement the nursing facility shall pay to the department the amount of privilege assessments shown to be due.
(b) The annual privilege assessments levied by this article shall be prorated on a month by month basis for any beds added to or subtracted from the nursing facility during the fiscal year except that, for any nursing facility which adds licensed beds after July 1, 1991, and has a monthly total occupancy rate of less than 85 percent according to Medicaid program methodology, the amount due for each such month shall be determined by prorating the annual privilege assessments due per bed on a daily basis and multiplying the amount times the total number of patient days furnished in such month by the facility. This exception shall cease as of the first month that the occupancy rate of the nursing facility equals or exceeds 85 percent.
(c) Any nursing facility that fails to pay the privilege assessments levied by this article within the time required by this article shall pay, in addition to the privilege assessments, a penalty of 10 percent of the amount of privilege assessments due, together with interest thereon at the rate prescribed by Section 40-1-44, such penalty and interest to be assessed and collected as part of the privilege assessments. Provided, however, the department, if a good and sufficient reason is shown, may waive or remit the penalty of 10 percent or a portion thereof. If payment is not received by the last day of the month, the department shall notify the Alabama Medicaid Agency, which shall withhold the payment, interest and penalty owed from any reimbursement due to the nursing facility under the Medicaid program. The privilege assessment levied by this article shall constitute a debt due the State of Alabama and may be collected by civil action in addition to the methods provided in this article. The department is empowered to assess, file tax liens, and collect the privilege assessments levied by this article, as prescribed in this title.
","history":"(Acts 1991, No. 91-126, p. 153, §4(a)-(c); Act 97-901, 1st Ex. Sess., p. 277, §1; Act 2011-614, p. 1376, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39091,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38231,"codeId":19322,"versionId":33553,"parentId":19295,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26B-24","shortTitle":"Section 40-26B-24","catchLine":"Duty to Keep Books and Records; Confidentiality of Information; Rules and Regulations.","title":"Section 40-26B-24 Duty to Keep Books and Records; Confidentiality of Information; Rules and Regulations.","sectionRange":null,"content":"(a) It shall be the duty of each nursing facility subject to this article to keep and preserve such suitable books and records as may be necessary to determine the amount of privilege assessments for which it is liable under the provisions of this article. The books and records shall be kept and preserved for a period of not less than three years, and all such books and records shall be open for examination during business hours by the department or its duly authorized agents.
(b) All information secured pursuant to this article by the department shall be confidential, as prescribed by Section 40-2A-10, except that the department may provide such information to the Alabama Medicaid Agency as necessary for the proper administration of the Medicaid program, or for the department’s proper administration of the privilege assessments levied by this article.
(c) The department shall from time to time, as it deems desirable, and after consultation with the Alabama Medicaid Agency, promulgate such reasonable rules and regulations as necessary to provide for the orderly and efficient administration of the privilege assessment levied by this article.
","history":"(Acts 1991, No. 91-126, p. 153, §4(d)-(f); Act 97-901, 1st Ex. Sess., p. 277, §1; Act 2011-614, p. 1376, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39092,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38232,"codeId":19327,"versionId":33554,"parentId":19295,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26B-25","shortTitle":"Section 40-26B-25","catchLine":"Use of Revenues; Reimbursement.","title":"Section 40-26B-25 Use of Revenues; Reimbursement.","sectionRange":null,"content":"(a) The Alabama Medicaid Agency shall use the revenues from the privilege assessment in furtherance of the purposes of this article, provided that any uses shall be limited to those for which federal financial participation under Title XIX of the Social Security Act is available.
(b) Any reimbursement due a nursing facility under the Medicaid program shall be paid in a timely fashion. If the amount payable is not in dispute and is not paid by the Alabama Medicaid Agency within 30 days of the due date, interest on the amount due shall be charged. The interest rate shall be the legal amount currently charged by the state.
","history":"Acts 1991, No. 91-126, p. 153, §5; Acts 1992, No. 92-440, p. 871, §1; Act 97-901, 1st Ex. Sess., p. 277, §1; Act 2011-614, p. 1376, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39093,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38234,"codeId":19335,"versionId":45566,"parentId":19295,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26B-27","shortTitle":"Section 40-26B-27","catchLine":"Severability.","title":"Section 40-26B-27 Severability.","sectionRange":null,"content":"THIS SECTION WAS AMENDED BY ACT 2020-147 IN THE 2020 REGULAR SESSION, EFFECTIVE MAY 18, 2020. THIS IS NOT IN THE CURRENT CODE SUPPLEMENT.
This article is intended to be severable. If federal financial participation under Title XIX of the Social Security Act is not available to the Alabama Medicaid program for the purposes of any section, subsection, paragraph, or subparagraph of this article at the approved federal medical assistance percentage, established under Section 1905 of the Social Security Act, for the applicable fiscal year then, the section, subsection, paragraph, or subparagraph of this article for which the approved federal financial participation at the approved federal medical assistance percentage, established under Section 1905 of the Social Security Act shall be of no effect. All other sections, subsections, paragraphs, and subparagraphs of this article eligible for federal financial participation shall remain in effect.
","history":"(Acts 1991, No. 91-126, p. 153, §7; Act 97-901, 1st Ex. Sess., p. 277, §1; Act 2020-147, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39095,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38235,"codeId":19342,"versionId":null,"parentId":19246,"effectiveDate":null,"supersessionDate":null,"type":"Article","displayId":"3","shortTitle":"Article 3","catchLine":"Disproportionate Share Hospitals.","title":"Article 3 Disproportionate Share Hospitals.","sectionRange":null,"content":null,"history":null,"numChildren":0,"isBranchNode":true,"isEmptyBranch":true,"isContentNode":false,"sortOrder":39096,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38236,"codeId":19343,"versionId":null,"parentId":19246,"effectiveDate":null,"supersessionDate":null,"type":"Article","displayId":"4","shortTitle":"Article 4","catchLine":"Refunds and Disproportionate Share Payments to Hospitals.","title":"Article 4 Refunds and Disproportionate Share Payments to Hospitals.","sectionRange":"§40-26B-60 to §40-26B-62","content":null,"history":null,"numChildren":3,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":39097,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38237,"codeId":19344,"versionId":15340,"parentId":19343,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26B-60","shortTitle":"Section 40-26B-60","catchLine":"Definitions.","title":"Section 40-26B-60 Definitions.","sectionRange":null,"content":"(a) For the purposes of this article the following words have the following meanings unless the context clearly indicates otherwise:
(1) DISPROPORTIONATE SHARE HOSPITAL. A hospital meeting the requirements of Section 1923 of the Social Security Act and other criteria adopted by the Alabama Medicaid Agency in its state plan for medical assistance under Title XIX of the Social Security Act.
(2) FISCAL YEAR. An accounting period of 12 months beginning on the first day of the first month of the state fiscal year.
(3) HOSPITAL. A facility, which is licensed as a hospital under the laws of the State of Alabama, provides 24-hour nursing services, and is primarily engaged in providing, by or under the supervision of doctors of medicine or osteopathy, inpatient services for the diagnosis, treatment, and care or rehabilitation of persons who are sick, injured, or disabled.
(4) PUBLICLY-OWNED HOSPITAL. A hospital created and operating under the authority of a governmental unit which has been established as a public corporation pursuant to Chapter 21 of Title 22 or Chapter 95 of Title 11, or a hospital otherwise owned and operated by a unit of local government.
","history":"(Acts 1993, No. 93-314, p. 471, §3(a).)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39098,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38238,"codeId":19348,"versionId":15344,"parentId":19343,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26B-61","shortTitle":"Section 40-26B-61","catchLine":"Payment in Timely Manner.","title":"Section 40-26B-61 Payment in Timely Manner.","sectionRange":null,"content":"Any disproportionate share payment due a hospital shall be paid in a timely fashion. If the amount payable is not in dispute and is not paid by the Alabama Medicaid Agency within 30 days of the due date, interest on the amount due shall be charged. The interest rate shall be the legal amount currently charged by the state.
","history":"(Acts 1993, No. 93-314, p. 471, §3(b).)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39099,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38239,"codeId":19352,"versionId":15348,"parentId":19343,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26B-62","shortTitle":"Section 40-26B-62","catchLine":"Funds Appropriated for Reimbursement.","title":"Section 40-26B-62 Funds Appropriated for Reimbursement.","sectionRange":null,"content":"In meeting its requirements under the Social Security Act that payments to hospitals will take into account the situation of disproportionate share hospitals, the agency shall, not later than the beginning of each fiscal year, promulgate regulations establishing the total amount of funds to be appropriated for each fiscal year by the agency for reimbursement, in accordance with its approved methodology, to disproportionate share hospitals other than state-owned teaching hospitals. In no event shall the total amount of funds appropriated for reimbursement to disproportionate share hospitals in accordance with and subject to the approved methodology be less than the disproportionate cap established by the Health Care Financing Administration.
","history":"(Acts 1993, No. 93-314, p. 471, §3(c).)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39100,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38240,"codeId":37950,"versionId":null,"parentId":19246,"effectiveDate":null,"supersessionDate":null,"type":"Article","displayId":"5","shortTitle":"Article 5","catchLine":"Hospital Funding Program.","title":"Article 5 Hospital Funding Program.","sectionRange":"§40-26B-70 to §40-26B-88","content":null,"history":null,"numChildren":20,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":39101,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38243,"codeId":37953,"versionId":30713,"parentId":37950,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26B-72","shortTitle":"Section 40-26B-72","catchLine":"Program Administration.","title":"Section 40-26B-72 Program Administration.","sectionRange":null,"content":"(a) The commissioner of the department shall administer the assessment program created in this article.
(b)(1) The department shall adopt rules pursuant to the Alabama Administrative Procedure Act to implement this article.
(2) Unless otherwise provided in this article, the rules adopted under subdivision (1) shall not grant any exceptions to or exemptions from the hospital assessment imposed.
(3) The rules adopted under this article shall include forms for:
a. The proper imposition and collection of the assessment imposed; and
b. Enforcement of this article, including without limitation letters of caution or sanctions; and
c. Reporting of net patient revenue.
(c) To the extent practicable, the department shall administer and enforce this article and collect the assessments, interest, and penalty assessments imposed under this article using procedures generally employed in the administration of the department’s other powers, duties, and functions.
","history":"(Act 2009-549, p. 1454, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39104,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38245,"codeId":37955,"versionId":30714,"parentId":37950,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26B-74","shortTitle":"Section 40-26B-74","catchLine":"Private Hospital Assessment.","title":"Section 40-26B-74 Private Hospital Assessment.","sectionRange":null,"content":"(a) Privately operated hospitals shall pay the assessment imposed under this article.
(b) If any exemption from the assessment is adjudged to be unconstitutional or otherwise invalid, this article shall be automatically repealed by the finding of unconstitutionality or invalidity.
","history":"(Act 2009-549, p. 1454, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39106,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38246,"codeId":37956,"versionId":40997,"parentId":37950,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26B-75","shortTitle":"Section 40-26B-75","catchLine":"Quarterly Notice and Collection.","title":"Section 40-26B-75 Quarterly Notice and Collection.","sectionRange":null,"content":"(a)(1) The annual assessment imposed under this article shall be due and payable on a quarterly basis during the first 15 business days of each quarter.
(2) Notwithstanding subdivision (1), the installment payment of an assessment imposed by this article shall not be due and payable until:
a. The department issues the written notice required by this article stating that the payment methodologies to privately operated hospitals required under this article have been approved by the Centers for Medicare and Medicaid Services and the waiver under 42 C.F.R. §433.68 for the assessment imposed by this article, if necessary, has been granted by the Centers for Medicare and Medicaid Services, or if approval for the State Plan Amendment and the waiver under 42 CFR §433.68 for the assessment imposed by this article, if necessary, is delayed for any reason, the payment shall be recalulated by Medicaid upon actual approval; and
b. The 30-day verification period required by this article has expired; and
c. Medicaid has made all disproportionate share payments for the quarter, consistent with the effective date of the approved state plan amendment and waiver.
(3) After the initial installment has been paid under this section, each subsequent quarterly installment payment of an assessment imposed by this article shall be due and payable during the first 15 business days of the quarter, or if approval for the State Plan Amendment and the waiver under 42 CFR §433.68 for the assessment imposed by this article, if necessary, is delayed for any reason, the payment shall be recalculated by Medicaid upon actual approval.
(b) The payment by a privately operated hospital of the assessment created in this article shall be reported as an allowable cost for Medicaid reimbursement purposes.
(c)(1) If a privately operated hospital fails to pay the full amount of a quarterly assessment by the fifteenth business day of the quarter, the department shall add to the assessment:
a. A penalty assessment equal to five percent of the quarterly amount not paid on or before the due date; and
b. On the last day of each quarter after the due date until the assessed amount and the penalty imposed under this section are paid in full, an additional five percent penalty assessment on any unpaid quarterly and unpaid penalty assessment amounts.
(2) Payments shall be credited first to unpaid quarterly amounts, rather than to penalty or interest amounts, beginning with the most delinquent installment.
","history":"(Act 2009-549, p. 1454, §2; Act 2011-615, p. 1383, §1; Act 2017-382, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39107,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38247,"codeId":37957,"versionId":40998,"parentId":37950,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26B-76","shortTitle":"Section 40-26B-76","catchLine":"Notice of Assessment.","title":"Section 40-26B-76 Notice of Assessment.","sectionRange":null,"content":"(a)(1) The department shall send a notice of assessment to each privately operated hospital informing the hospital of the assessment rate, the hospital’s net patient revenue calculation, and the estimated assessment amount owed by the hospital for the applicable fiscal year.
(2) Annual notices of assessment shall be sent at least 30 days before the due date for the first quarterly assessment payment of each fiscal year.
(b)(1) The privately operated hospital shall have 30 days from the date of its receipt of a notice of assessment to review and verify the assessment rate, the hospital’s net patient revenue calculation, and the estimated assessment amount.
(2) If a privately operated hospital disputes the hospital’s net patient revenue calculation and the estimated assessment amount, the hospital shall notify the department of the disputed amounts within 15 business days of notification of the assessment by the department. The hospital and the department shall attempt to resolve the dispute on an informal basis initially. If the hospital and department cannot informally resolve the dispute, the dispute resolution process described in Chapter 2A of this title, the Alabama Taxpayer’s Bill of Rights and Uniform Revenue Procedures Act and any subsequent amendatory acts shall be followed to resolve the dispute.
(c)(1) If a hospital provider operates, conducts, or maintains more than one privately operated hospital in the state, the hospital provider shall pay the assessment for each hospital separately.
(2) However, if the hospital provider operates more than one privately operated hospital under one Medicaid provider number, the hospital provider may pay the assessment for the hospitals in the aggregate.
(d) The total annual assessment amount for all private hospitals shall not exceed the amount of funds necessary to obtain federal funds needed to pay private hospital payments.
(e) (1) For a privately operated hospital subject to the assessment imposed under this article that ceases to conduct hospital operations or maintain its state license or did not conduct hospital operations throughout a state fiscal year, the assessment for the state fiscal year in which the cessation occurs shall be adjusted by multiplying the annual assessment computed under this article by a fraction, the numerator of which is the number of days during the year that the hospital operated and the denominator of which is 365.
(2)a. Immediately prior to ceasing operations, the hospital shall pay the adjusted assessment for that state fiscal year to the extent not previously paid.
b. The hospital also shall receive payments from Medicaid under this article, which shall be adjusted by the same fraction as its annual assessment.
(f) A privately operated hospital subject to an assessment under this article that has not been previously licensed as a hospital in Alabama and that commences hospital operations during a state fiscal year shall pay the required assessment computed under this article and shall be eligible for hospital access payments under this article on the date specified in rules promulgated by Medicaid under the Alabama Administrative Procedure Act.
(g) A hospital that is exempt from payment of the assessment under this article at the beginning of a state fiscal year, but during the state fiscal year experiences a change in status so that it becomes subject to the assessment shall pay the required assessment computed under this article and shall be eligible for hospital access payments under this article on the date specified in rules promulgated by Medicaid under the Alabama Administrative Procedure Act.
(h) A privately operated hospital that is subject to payment of the assessment computed under this article at the beginning of a state fiscal year, but during the state fiscal year experiences a change in status so that it becomes exempted from payment under this article shall be relieved of its obligation to pay the hospital assessment on the date specified in rules promulgated by Medicaid under the Alabama Administrative Procedure Act.
","history":"(Act 2009-549, p. 1454, §2; Act 2011-615, p. 1383, §1; Act 2017-382, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39108,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38248,"codeId":37958,"versionId":35812,"parentId":37950,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26B-77","shortTitle":"Section 40-26B-77","catchLine":"Hospital Certified Public Expenditures.","title":"Section 40-26B-77 Hospital Certified Public Expenditures.","sectionRange":null,"content":"Repealed by Act 2016-299, §2, effective October 1, 2016.
","history":"(Act 2009-549, p. 1454, §2; Act 2011-615, p. 1383, §1; Act 2013-246, p. 595, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39109,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38250,"codeId":37959,"versionId":35813,"parentId":37950,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26B-78","shortTitle":"Section 40-26B-78","catchLine":"Certified Public Expenditure Accounting.","title":"Section 40-26B-78 Certified Public Expenditure Accounting.","sectionRange":null,"content":"(a) Medicaid shall account for those federal funds derived from certified public expenditures by publicly and state-owned hospitals as those funds are received by Medicaid from the federal government.
(b) The certified public expenditure accounting shall be separate and distinct from the state General Fund appropriation accounting.
(c) Federal moneys accounted for shall not be used to replace other state General Fund revenues appropriated and funded by the Legislature or other revenues used to support Medicaid.
(d) The moneys obtained by Medicaid from hospital certified public expenditure certifications shall be used only as follows:
(1) To make disproportionate share hospital payments under this article;
(2) To reimburse moneys collected by the department through error or mistake under this article; or
(3) For any other permissible purpose allowed under Title XIX of the Social Security Act.
","history":"(Act 2009-549, p. 1454, §2; Act 2013-246, p. 595, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39111,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38255,"codeId":37964,"versionId":30715,"parentId":37950,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26B-83","shortTitle":"Section 40-26B-83","catchLine":"State Plan Amendment.","title":"Section 40-26B-83 State Plan Amendment.","sectionRange":null,"content":"(a) There is established the Hospital Services and Reimbursement Panel to advise in the development of and approve any state plan amendment which involves hospital services or reimbursement to be submitted to the Centers for Medicare and Medicaid Services.
(1) The panel shall consist of six members and be constituted in the following manner:
a. The Commissioner of the Alabama Medicaid Agency.
b. Three members to be appointed by the Governor from a list of 10 names submitted by the Alabama Hospital Association. The hospital members appointed shall represent the diverse ownership type of hospitals in the state.
c. Two members to be appointed by the Governor.
(2) All panel members shall be residents of Alabama and the composition of the board shall reflect the racial, gender, geographic, urban/rural, and economic diversity of the state. The panel shall meet within 30 days subsequent to May 15, 2009, to elect a chair and establish procedures necessary to carry out the business of the panel. A quorum shall be a majority of the members appointed to the panel. The sole purpose of the panel is to approve any amendments to the state plan to be submitted to the Centers for Medicare and Medicaid Services which involve hospital services or reimbursement. Amendments to the state plan must be approved by a majority of the members attending a meeting called for the purpose of reviewing and approving, amending, or disapproving the proposed state plan amendment.
(b) Medicaid shall file with the Centers for Medicare and Medicaid Services a state plan amendment approved by the Hospital Services and Reimbursement Panel to implement the requirements of this article, including the payment of hospital access payments under this article no later than 45 days after the effective date of this article.
(c) If the state plan amendment is not approved by the Centers for Medicare and Medicaid Services, the department shall:
(1) Not implement the assessment imposed under this article; and
(2) Return any assessment fees to the hospitals that paid the fees if assessment fees have been collected.
","history":"(Act 2009-549, p. 1454, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39116,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38257,"codeId":37966,"versionId":43489,"parentId":37950,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26B-85","shortTitle":"Section 40-26B-85","catchLine":"Eligibility and Benefit Expansions.","title":"Section 40-26B-85 Eligibility and Benefit Expansions.","sectionRange":null,"content":"Except for Medicaid expansion under the Affordable Care Act, as amended, if the Medicaid Agency elects to liberalize the eligibility criteria for individuals who apply for Medicaid services or to expand or increase the medical assistance benefits as defined in Title XIX of the Social Security Act which it currently provides to Medicaid beneficiaries, the state share of such funds necessary to increase medical assistance benefits or allow more persons to become eligible for Medicaid shall only be appropriated from the state General Fund and not from any funds produced or segregated for hospital payments under this article.
","history":"(Act 2009-549, p. 1454, §2; Act 2019-278, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39118,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38258,"codeId":37967,"versionId":40337,"parentId":37950,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26B-86","shortTitle":"Section 40-26B-86","catchLine":"Disproportionate Share Payments.","title":"Section 40-26B-86 Disproportionate Share Payments.","sectionRange":null,"content":"The Social Security Act provides for additional payments to hospitals qualifying as disproportionate share hospitals under Section 1923(d) of that act. Payments to disproportionate share hospitals shall be made to all hospitals qualifying for disproportionate share hospital payments under Section 1923(d) of that act, in addition to any other payments by Medicaid. Medicaid shall fully expend the allotment to hospitals under Section 1923(f)(3) of the Social Security Act. Medicaid shall not restrict the qualifications for disproportionate share hospital payments to anything less than what the act sets out as disproportionate share hospital qualifications. The disproportionate share hospital payment to each hospital shall be made quarterly during the first month of each quarter for the state fiscal year. Medicaid shall mandate an uncompensated care survey be completed annually and returned to Medicaid by each hospital affected by this article beginning with the state fiscal year ending September 30, 2009, and thereafter for each state fiscal year. The survey shall be conducted in a manner that complies with federal rules related to auditing and reporting of disproportionate share hospital payments, as described in 42 C.F.R. §§447 and 455.
","history":"(Act 2009-549, p. 1454, §2; Act 2016-299, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39119,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38259,"codeId":37968,"versionId":30716,"parentId":37950,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26B-87","shortTitle":"Section 40-26B-87","catchLine":"Exclusion from State General Fund.","title":"Section 40-26B-87 Exclusion from State General Fund.","sectionRange":null,"content":"The Commissioner of the Alabama Medicaid Agency is hereby directed to specifically exclude from the Plan Amendment submitted to the Centers for Medicare and Medicaid Services regarding the Hospital Assessment Program any language or calculations that would incur liability to the State General Fund.
","history":"(Act 2009-549, p. 1454, §3.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39120,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38261,"codeId":55035,"versionId":null,"parentId":19246,"effectiveDate":null,"supersessionDate":null,"type":"Article","displayId":"6","shortTitle":"Article 6","catchLine":"Emergency Medical Transport Providers.","title":"Article 6 Emergency Medical Transport Providers.","sectionRange":"§40-26B-90 to §40-26B-99","content":null,"history":null,"numChildren":10,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":39122,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38264,"codeId":55038,"versionId":48088,"parentId":55035,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26B-92","shortTitle":"Section 40-26B-92","catchLine":"Assessment on Emergency Medical Transport Providers - Notification of Rate and Amount. (Amended by Act 2025-370)","title":"Section 40-26B-92 Assessment on Emergency Medical Transport Providers - Notification of Rate and Amount. (Amended by Act 2025-370)","sectionRange":null,"content":"The department shall notify, or make available to, each emergency medical transport provider, in accordance with notification procedures determined by the department, the assessment rate, and the estimated assessment amount owed by the provider for the applicable fiscal quarter.
","history":"(Act 2022-128, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39125,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38268,"codeId":55042,"versionId":48092,"parentId":55035,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26B-96","shortTitle":"Section 40-26B-96","catchLine":"Funding Requirements.","title":"Section 40-26B-96 Funding Requirements.","sectionRange":null,"content":"(a) The proceeds of the assessment set forth in Section 40-26B-91 and the matching amount provided by the federal government shall be used to supplement existing Medicaid funding for emergency medical transports provided by emergency medical transport providers and not to supplant this funding.
(b) The state shall continue its maintenance of effort for the level of state funding not derived from the assessment on emergency medical transport providers for each fiscal quarter commencing on or after October 1, 2022, in an amount not less than the amount that the state would have paid for the same number of emergency medical transports under the rate methodology that was in effect on January 1, 2022.
","history":"(Act 2022-128, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39129,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38269,"codeId":55043,"versionId":48093,"parentId":55035,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26B-97","shortTitle":"Section 40-26B-97","catchLine":"Delay in Implementation.","title":"Section 40-26B-97 Delay in Implementation.","sectionRange":null,"content":"If there is a delay in the implementation of this article for any reason, including a delay in any required approval by the federal Centers for Medicare and Medicaid Services, both of the following shall apply:
(1) An emergency medical transport provider may only be required to pay the assessment pursuant to this article for fiscal quarters for which the federal Centers for Medicare and Medicaid Services has approved the enhanced payments pursuant to Section 40-26B-95. The department may not collect assessments pursuant to this article until the Alabama Medicaid Agency has received federal approval of the enhanced payments pursuant to Section 40-26B-95. Upon federal approval of the enhanced payments pursuant to Section 40-26B-95, the department shall establish a schedule for payment of assessments in consultation with emergency medical transport providers.
(2) The Alabama Medicaid Agency may retroactively implement the emergency medical transport enhancements described in Section 40-26B-95 to the extent authorized by the federal Centers for Medicare and Medicaid Services.
","history":"(Act 2022-128, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39130,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38270,"codeId":55044,"versionId":48094,"parentId":55035,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-26B-98","shortTitle":"Section 40-26B-98","catchLine":"Approval from Federal Centers for Medicare and Medicaid Services.","title":"Section 40-26B-98 Approval from Federal Centers for Medicare and Medicaid Services.","sectionRange":null,"content":"(a)(1) The Alabama Medicaid Agency shall request any approval from the federal Centers for Medicare and Medicaid Services it deems necessary for the use of assessments pursuant to this article and for the purpose of receiving associated federal matching funds.
(2) This article shall be implemented only to the extent that any necessary federal approvals are obtained and federal financial participation is available.
(b) The Alabama Medicaid Agency may modify or make adjustments to any methodology, assessment amount, or other provision specified in this article to the extent necessary to meet the requirements of federal law or regulations or to obtain federal approval, but only if subsection (c) of Section 40-26B-93 and subsection (b) of Section 40-26B-96 remain in full force and effect. To the extent that the Alabama Medicaid Agency reduces the emergency medical transport enhancement in order to meet the requirements of federal law or regulations or to obtain federal approval, it must reduce the assessment rate such that the amount of assessment collected does not exceed the amounts needed for the uses described in subsection (c) of Section 40-26B-93.
(c) The Commissioner of Alabama Medicaid may exempt categories of emergency medical transport providers from the assessment if necessary to obtain federal approval.
(d) To the extent that the Alabama Medicaid Agency reduces the total assessment collected pursuant to this article pursuant to subsections (b) or (c), the amount described in subdivision (c)(1) of Section 40-26B-93 shall be reduced in proportion to the amount of the reduced total assessments.
","history":"(Act 2022-128, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39131,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38272,"codeId":19360,"versionId":null,"parentId":40,"effectiveDate":null,"supersessionDate":null,"type":"Chapter","displayId":"27","shortTitle":"Chapter 27","catchLine":"Multistate Tax Compact.","title":"Chapter 27 Multistate Tax Compact.","sectionRange":"§40-27-1 to §40-27-6","content":null,"history":null,"numChildren":7,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":39133,"hierarchyLevel":1,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38273,"codeId":19362,"versionId":46746,"parentId":19360,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-27-1","shortTitle":"Section 40-27-1","catchLine":"Compact Adopted; Terms.","title":"Section 40-27-1 Compact Adopted; Terms.","sectionRange":null,"content":"The following Multistate Tax Compact is hereby approved, adopted, and enacted into law by the State of Alabama:
The purposes of this compact are to:
1. Facilitate proper determination of state and local tax liability of multistate taxpayers, including the equitable apportionment of tax bases and settlement of apportionment disputes.
2. Promote uniformity or compatibility in significant components of tax systems.
3. Facilitate taxpayer convenience and compliance in the filing of tax returns and in other phases of tax administration.
4. Avoid duplicative taxation.
As used in this compact:
1. “State” means a state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or any territory or possession of the United States.
2. “Subdivision” means any governmental unit or special district of a state.
3. “Taxpayer” means any corporation, partnership, firm, association, governmental unit or agency, or other person acting as a business entity in more than one state, but does not include any individual.
4. “Income tax” means a tax imposed on or measured by net income including any tax imposed on or measured by an amount arrived at by deducting expenses from gross income, one or more forms of which expenses are not specifically and directly related to particular transactions.
5. “Capital stock tax” means a tax measured in any way by the capital of a corporation considered in its entirety.
6. “Gross receipts tax” means a tax, other than a sales tax, which is imposed on or measured by the gross volume of business, in terms of gross receipts or in other terms, and in the determination of which no deduction is allowed which would constitute the tax an income tax.
7. “Sales tax” means a tax imposed with respect to the transfer for a consideration of ownership, possession or custody of tangible personal property, or the rendering of services measured by the price of the tangible personal property transferred or services rendered and which is required by state or local law to be separately stated from the sales price by the seller, or which is customarily separately stated from the sales price, but does not include a tax imposed exclusively on the sale of a specifically identified commodity or article or class of commodities or articles.
8. “Use tax” means a nonrecurring tax, other than a sales tax, which (a) is imposed on or with respect to the exercise or enjoyment of any right or power over tangible personal property incident to the ownership, possession, or custody of that property or the leasing of that property from another including any consumption, keeping, retention, or other use of tangible personal property and (b) is complementary to a sales tax.
9. “Tax” means an income tax, capital stock tax, gross receipts tax, sales tax, use tax, and any other tax which has a multistate impact, except that the provisions of articles III, IV, and V of this compact shall apply only to the taxes specifically designated therein and the provisions of article IX of this compact shall apply only in respect to determinations pursuant to article IV.
1. Any taxpayer subject to an income tax whose income is subject to apportionment and allocation for tax purposes pursuant to the laws of a party state or pursuant to the laws of subdivisions in two or more party states may elect to apportion and allocate his or her income in the manner provided by the laws of such state or by the laws of such states and subdivisions without reference to this compact, or may elect to apportion and allocate in accordance with article IV. This election for any tax year may be made in all party states or subdivisions thereof or in any one or more of the party states or subdivisions thereof without reference to the election made in the others. For the purposes of this paragraph, taxes imposed by subdivisions shall be considered separately from state taxes and the apportionment and allocation also may be applied to the entire tax base. In no instance wherein article IV is employed for all subdivisions of a state may the sum of all apportionments and allocations to subdivisions within a state be greater than the apportionment and allocation that would be assignable to that state if the apportionment or allocation were being made with respect to a state income tax.
2. Each party state or any subdivision thereof which imposes an income tax shall provide by law that any taxpayer required to file a return, whose only activities within the taxing jurisdiction consist of sales and do not include owning or renting real estate or tangible personal property, and whose dollar volume of gross sales made during the tax year within the state or subdivision, as the case may be, is not in excess of $100,000 may elect to report and pay any tax due on the basis of a percentage of such volume, and shall adopt rates which shall produce a tax which reasonably approximates the tax otherwise due. The Multistate Tax Commission, not more than once in five years, may adjust the $100,000 figure in order to reflect such changes as may occur in the real value of the dollar, and such adjusted figure, upon adoption by the commission, shall replace the $100,000 figure specifically provided herein. Each party state and subdivision thereof may make the same election available to taxpayers additional to those specified in this paragraph.
3. Nothing in this article relates to the reporting or payment of any tax other than an income tax.
1. As used in this article, unless the context otherwise requires:
(a) “Business income” means income arising from transactions and activity in the regular course of the taxpayer’s trade or business and includes income from tangible and intangible property if the acquisition, management, and disposition of the property constitute integral parts of the taxpayer’s regular trade or business operations.
(b) “Commercial domicile” means the principal place from which the trade or business of the taxpayer is directed or managed.
(c) “Compensation” means wages, salaries, commissions, and any other form of remuneration paid to employees for personal services.
(d) “Financial organization” means any bank, trust company, savings bank, industrial bank, land bank, safe deposit company, private banker, savings and loan association, credit union, cooperative bank, small loan company, sales finance company, investment company, or any type of insurance company.
(e) “Nonbusiness income” means all income other than business income.
(f) “Public utility” means any business entity (1) which owns or operates any plant, equipment, property, franchise, or license for the transmission of communications, transportation of goods or persons, except by pipeline, or the production, transmission, sale, delivery, or furnishing of electricity, water, or steam; and (2) whose rates of charges for goods or services have been established or approved by a federal, state or local government, or governmental agency.
(g) “Sales” means all gross receipts of the taxpayer not allocated under paragraphs of this article.
(h) “State” means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States, and any foreign country or political subdivision thereof.
(i) “This state” means the state in which the relevant tax return is filed or, in the case of application of this article to the apportionment and allocation of income for local tax purposes, the subdivision or local taxing district in which the relevant tax return is filed.
2. Any taxpayer having income from business activity which is taxable both within and without this state, other than activity as a financial organization or public utility or an individual, shall allocate and apportion his or her or its net income as provided in this article. If a taxpayer has income from business activity as a public utility but derives the greater percentage of his or her or its income from activities subject to this article, the taxpayer may elect to allocate and apportion his or her or its entire net income as provided in this article.
3. For purposes of allocation and apportionment of income under this article, a taxpayer is taxable in another state if: (1) in that state he or she or it is subject to a net income tax, a franchise tax measured by net income, a franchise tax for the privilege of doing business, or a corporate stock tax, or (2) that state has jurisdiction to subject the taxpayer to a net income tax regardless of whether, in fact, the state does or does not.
4. Rents and royalties from real or tangible personal property, capital gains, interest, dividends, or patent or copyright royalties, to the extent that they constitute nonbusiness income, shall be allocated as provided in paragraphs 5 through 8 of this article.
5. (a) Net rents and royalties from real property located in this state are allocable to this state.
(b) Net rents and royalties from tangible personal property are allocable to this state: (1) if and to the extent that the property is utilized in this state, or (2) in their entirety if the taxpayer’s commercial domicile is in this state and the taxpayer is not organized under the laws of or taxable in the state in which the property is utilized.
(c) The extent of utilization of tangible personal property in a state is determined by multiplying the rents and royalties by a fraction, the numerator of which is the number of days of physical location of the property in the state during the rental or royalty period in the taxable year and the denominator of which is the number of days of physical location of the property everywhere during all rental or royalty periods in the taxable year. If the physical location of the property during the rental or royalty period is unknown or unascertainable by the taxpayer, tangible personal property is utilized in the state in which the property was located at the time the rental or royalty payer obtained possession.
6. (a) Capital gains and losses from sales of real property located in this state are allocable to this state.
(b) Capital gains and losses from sales of tangible personal property are allocable to this state if (1) the property had a situs in this state at the time of the sale, or (2) the taxpayer’s commercial domicile is in this state and the taxpayer is not taxable in the state in which the property had a situs.
(c) Capital gains and losses from sales of intangible personal property are allocable to this state if the taxpayer’s commercial domicile is in this state.
7. Interest and dividends are allocable to this state if the taxpayer’s commercial domicile is in this state.
8. (a) Patent and copyright royalties are allocable to this state: (1) if and to the extent that the patent or copyright is utilized by the payer in this state, or (2) if and to the extent that the patent copyright is utilized by the payer in a state in which the taxpayer is not taxable and the taxpayer’s commercial domicile is in this state.
(b) A patent is utilized in a state to the extent that it is employed in production, fabrication, manufacturing, or other processing in the state or to the extent that a patented product is produced in the state. If the basis of receipts from patent royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the patent is utilized in the state in which the taxpayer’s commercial domicile is located.
(c) A copyright is utilized in a state to the extent that printing or other publication originates in the state. If the basis of receipts from copyright royalties does not permit allocation to states or if the accounting procedures do not reflect states of utilization, the copyright is utilized in the state in which the taxpayer’s commercial domicile is located.
9. All business income shall be apportioned to this state by multiplying the income by the sales factor.
10. The sales factor is a fraction, the numerator of which is the total sales of the taxpayer in this state during the tax period, and the denominator of which is the total sales of the taxpayer everywhere during the tax period.
11. Sales of tangible personal property are in this state if the property is delivered or shipped to a purchaser, other than the United States government, within this state regardless of the f.o.b. point or other conditions of the sale.
12. Sales, other than sales described in Section 11, are in this state if the taxpayer’s market for the sale is in this state.
(a) The taxpayer’s market for a sale is in this state:
(1) In the case of sale, rental, lease, or license of real property, if and to the extent the property is located in this state;
(2) In the case of rental, lease, or license of tangible personal property, if and to the extent the property is located in this state;
(3) In the case of sale of a service, if and to the extent the service is delivered to a location in this state;
(4) In the case of lease or license of intangible property; or sale or other exchange of intangible property if the receipts from the sale or exchange derive from payments that are contingent on the productivity, use, or disposition of the property, if and to the extent the intangible property is used in this state; provided that intangible property used in marketing a good or service to a consumer is used in this state if the good or service that is marketed using the intangible property is purchased by a consumer who is in this state; and
(5) In the case of sale of intangible property other than that referenced in subdivision (4) above; where the property sold is a contract right, government license, or similar intangible property that authorizes the holder to conduct a business activity in a specific geographic area; if and to the extent the intangible property is used in or otherwise associated with this state, provided that any sale of intangible property not otherwise described in this subdivision or subdivision (4) above shall be excluded from the numerator and the denominator of the sales factor.
(b) If the state of assignment cannot be determined under subsection (a), it shall be reasonably approximated.
(c) If the taxpayer is not taxable in a state to which a sale is assigned under subsection (a), or if the state of assignment cannot be determined under subsection (a) or reasonably approximated under subsection (b), the sale shall be excluded from the denominator of the sales factor.
13. If the allocation and apportionment provisions of this article do not fairly represent the extent of the taxpayer’s business activity in this state, the taxpayer may petition for or the tax administrator may require, in respect to all or any part of the taxpayer’s business activity, if reasonable:
(a) Separate accounting;
(b) The exclusion of any one or more of the factors;
(c) The inclusion of one or more additional factors which will fairly represent the taxpayer’s business activity in this state; or
(d) The employment of any other method to effectuate an equitable allocation and apportionment of the taxpayer’s income.
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 or her 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 then be applied against the amount of any use tax due a subdivision.
2. Whenever a vendor receives and accepts in good faith from a purchaser a resale or other exemption certificate or other written evidence of exemption authorized by the appropriate state or subdivision taxing authority, the vendor shall be relieved of liability for a sales or use tax with respect to the transaction.
1. (a) The Multistate Tax Commission is hereby established. It shall be composed of one “member” from each party state who shall be the head of the state agency charged with the administration of the types of taxes to which this compact applies. If there is more than one such agency the state shall provide by law for the selection of the commission member from the heads of the relevant agencies. State law may provide that a member of the commission be represented by an alternate but only if there is on file with the commission written notification of the designation and identity of the alternate. The Attorney General of each party state or his or her designee, or other counsel if the laws of the party state specifically provide, shall be entitled to attend the meetings of the commission, but shall not vote. Such Attorneys General, designees, or other counsel shall receive all notices of meetings required under paragraph 1(e) of this article.
(b) Each party state shall provide by law for the selection of representatives from its subdivisions affected by this compact to consult with the commission member from that state.
(c) Each member shall be entitled to one vote. The commission shall not act unless a majority of the members are present, and no action shall be binding unless approved by a majority of the total number of members.
(d) The commission shall adopt an official seal to be used as it may provide.
(e) The commission shall hold an annual meeting and such other regular meetings as its bylaws may provide and such special meetings as its executive committee may determine. The commission bylaws shall specify the dates of the annual and any other regular meetings, and shall provide for the giving of notice of annual, regular, and special meetings. Notices of special meetings shall include the reasons therefor and an agenda of the items to be considered.
(f) The commission shall elect annually, from among its members, a chair, a vice-chair, and a treasurer. The commission shall appoint an executive director who shall serve at its pleasure, and it shall fix his or her duties and compensation. The executive director shall be secretary of the commission. The commission shall make provision for the bonding of such of its officers and employees as it may deem appropriate.
(g) Irrespective of the civil service, personnel, or other merit system laws of any party state, the executive director shall appoint or discharge such personnel as may be necessary for the performance of the functions of the commission and shall fix their duties and compensation. The commission bylaws shall provide for personnel policies and programs.
(h) The commission may borrow, accept, or contract for the services of personnel from any state, the United States, or any other governmental entity.
(i) The commission may accept for any of its purposes and functions any and all donations and grants of money, equipment, supplies, materials, and services, conditional or otherwise, from any governmental entity, and may utilize and dispose of the same.
(j) The commission may establish one or more offices for the transacting of its business.
(k) The commission shall adopt bylaws for the conduct of its business. The commission shall publish its bylaws in convenient form, and shall file a copy of the bylaws and any amendments thereto with the appropriate agency or officer in each of the party states.
(l) The commission annually shall make to the Governor and Legislature of each party state a report covering its activities for the preceding year. Any donation or grant accepted by the commission or services borrowed shall be reported in the annual report of the commission, and shall include the nature, amount, and conditions, if any, of the donation, gift, or grant accepted or services borrowed and the identity of the donor or lender. The commission may make additional reports as it may deem desirable.
2. (a) To assist in the conduct of its business when the full commission is not meeting, the commission shall have an executive committee of seven members, including the chair, vice-chair, treasurer, and four other members elected annually by the commission. The executive committee, subject to the provisions of this compact and consistent with the policies of the commission, shall function as provided in the bylaws of the commission.
(b) The commission may establish advisory and technical committees, membership on which may include private persons and public officials, in furthering any of its activities. Such committees may consider any matter of concern to the commission, including problems of special interest to any party state and problems dealing with particular types of taxes.
(c) The commission may establish such additional committees as its bylaws may provide.
3. In addition to powers conferred elsewhere in this compact, the commission shall have power to:
(a) Study state and local tax systems and particular types of state and local taxes.
(b) Develop and recommend proposals for an increase in uniformity or compatibility of state and local tax laws with a view toward encouraging the simplification and improvement of state and local tax law and administration.
(c) Compile and publish information as in its judgment would assist the party states in implementation of the compact and taxpayers in complying with state and local tax laws.
(d) Do all things necessary and incidental to the administration of its functions pursuant to this compact.
4. (a) The commission shall submit to the Governor or designated officer or officers of each party state a budget of its estimated expenditures for such period as may be required by the laws of that state for presentation to the Legislature thereof.
(b) Each of the commission’s budgets of estimated expenditures shall contain specific recommendations of the amounts to be appropriated by each of the party states. The total amount of appropriations requested under any such budget shall be apportioned among the party states as follows: one tenth in equal shares; and the remainder in proportion to the amount of revenue collected by each party state and its subdivisions from income taxes, capital stock taxes, gross receipts taxes, and sales and use taxes. In determining such amounts, the commission shall employ such available public sources of information as, in its judgment, present the most equitable and accurate comparisons among the party states. Each of the commission’s budgets of estimated expenditures and requests for appropriations shall indicate the sources used in obtaining information employed in applying the formula contained in this paragraph.
(c) The commission shall not pledge the credit of any party state. The commission may meet any of its obligations in whole or in part with funds available to it under paragraph 1(i) of this article: Provided that the commission takes specific action setting aside such funds prior to incurring any obligation to be met in whole or in part in such manner. Except where the commission makes use of funds available to it under paragraph 1(i), the commission shall not incur any obligation prior to the allotment of funds by the party states adequate to meet the same.
(d) The commission shall keep accurate accounts of all receipts and disbursements. The receipts and disbursements of the commission shall be subject to the audit and accounting procedures established under its bylaws. All receipts and disbursements of funds handled by the commission shall be audited yearly by a certified or licensed public accountant and the report of the audit shall be included in and become part of the annual report of the commission.
(e) The accounts of the commission shall be open at any reasonable time for inspection by duly constituted officers of the party states and by any persons authorized by the commission.
(f) Nothing contained in this article shall be construed to prevent commission compliance with laws relating to audit or inspection of accounts by or on behalf of any government contributing to the support of the commission.
1. Whenever any two or more party states, or subdivisions of party states, have uniform or similar provisions of law relating to an income tax, capital stock tax, gross receipts tax, or sales or use tax, the commission may adopt uniform regulations for any phase of the administration of such law, including assertion of jurisdiction to tax, or prescribing uniform tax forms. The commission may also act with respect to the provisions of article IV of this compact.
2. Prior to the adoption of any regulation, the commission shall:
(a) As provided in its bylaws, hold at least one public hearing on due notice to all affected party states and subdivisions thereof and to all taxpayers and other persons who have made timely request of the commission for advance notice of its regulation-making proceedings.
(b) Afford all affected party states and subdivisions and interested persons an opportunity to submit relevant written data and views, which shall be considered fully by the commission.
3. The commission shall submit any regulations adopted by it to the appropriate officials of all party states and subdivisions to which they might apply. Each such state and subdivision shall consider any such regulation for adoption in accordance with its own laws and procedures.
1. This article shall be in force only in those party states that specifically provide therefor by statute.
2. Any party state or subdivision thereof desiring to make or participate in an audit of any accounts, books, papers, records, or other documents may request the commission to perform the audit on its behalf. In responding to the request, the commission shall have access to and may examine, at any reasonable time, such accounts, books, papers, records, and other documents, and any relevant property or stock of merchandise. The commission may enter into agreements with party states or their subdivisions for assistance in performance of the audit. The commission shall make charges, to be paid by the state or local government or governments for which it performs the service, for any audits performed by it in order to reimburse itself for the actual costs incurred in making the audit.
3. The commission may require the attendance of any person within the state where it is conducting an audit or part thereof at a time and place fixed by it within such state for the purpose of giving testimony with respect to any account, book, paper, document, other record, property, or stock of merchandise being examined in connection with the audit. If the person is not within the jurisdiction, he or she may be required to attend for such purpose at any time and place fixed by the commission within the state of which he or she is a resident: Provided that such state has adopted this article.
4. The commission may apply to any court having power to issue compulsory process for orders in aid of its powers and responsibilities pursuant to this article and any and all such courts shall have jurisdiction to issue such orders. Failure of any person to obey any such order shall be punishable as contempt of the issuing court. If the party or subject matter on account of which the commission seeks an order is within the jurisdiction of the court to which application is made, such application may be to a court in the state or subdivision on behalf of which the audit is being made or a court in the state in which the object of the order being sought is situated. The provisions of this paragraph apply only to courts in a state that has adopted this article.
5. The commission may decline to perform any audit requested if it finds that its available personnel or other resources are insufficient for the purpose or that, in the terms requested, the audit is impracticable of satisfactory performance. If the commission, on the basis of its experience, has reason to believe that an audit of a particular taxpayer, either at a particular time or on a particular schedule, would be of interest to a number of party states or their subdivisions, it may offer to make the audit or audits, the offer to be contingent on sufficient participation therein as determined by the commission.
6. Information obtained by an audit pursuant to this article shall be confidential and available only for tax purposes to party states, their subdivisions, or the United States. Availability of information shall be in accordance with the laws of the states or subdivisions on whose account the commission performs the audit, and only through the appropriate agencies or officers of such states or subdivisions. Nothing in this article shall be construed to require any taxpayer to keep records for any period not otherwise required by law.
7. Other arrangements made or authorized pursuant to law for cooperative audit by or on behalf of the party states or any of their subdivisions are not superseded or invalidated by this article.
8. In no event shall the commission make any charge against a taxpayer for an audit.
9. As used in this article, “tax,” in addition to the meaning ascribed to it in article II, means any tax or license fee imposed in whole or in part for revenue purposes.
1. Whenever the commission finds a need for settling disputes concerning apportionments and allocations by arbitration, it may adopt a regulation placing this article in effect, notwithstanding the provisions of article VII.
2. The commission shall select and maintain an arbitration panel composed of officers and employees of state and local governments and private persons who shall be knowledgeable and experienced in matters of tax law and administration.
3. Whenever a taxpayer who has elected to employ article IV, or whenever the laws of the party state or subdivision thereof are substantially identical with the relevant provisions of article IV, the taxpayer, by written notice to the commission and to each party state or subdivision thereof that would be affected, may secure arbitration of an apportionment or allocation, if he or she is dissatisfied with the final administrative determination of the tax agency of the state or subdivision with respect thereto on the ground that it would subject him or her to double or multiple taxation by two or more party states or subdivisions thereof. Each party state and subdivision thereof hereby consents to the arbitration as provided herein, and agrees to be bound thereby.
4. The arbitration board shall be composed of one person selected by the taxpayer, one by the agency or agencies involved, and one member of the commission’s arbitration panel. If the agencies involved are unable to agree on the person to be selected by them, such person shall be selected by lot from the total membership of the arbitration panel. The two persons selected for the board in the manner provided by the foregoing provisions of this paragraph shall jointly select the third member of the board. If they are unable to agree on the selection, the third member shall be selected by lot from among the total membership of the arbitration panel. No member of a board selected by lot shall be qualified to serve if he or she is an officer or employee or is otherwise affiliated with any party to the arbitration proceeding. Residence within the jurisdiction of a party to the arbitration proceeding shall not constitute affiliation within the meaning of this paragraph.
5. The board may sit in any state or subdivision party to the proceeding, in the state of the taxpayer’s incorporation, residence, or domicile, in any state where the taxpayer does business, or in any place that it finds most appropriate for gaining access to evidence relevant to the matter before it.
6. The board shall give due notice of the times and places of its hearings. The parties shall be entitled to be heard, to present evidence, and to examine and cross-examine witnesses. The board shall act by majority vote.
7. The board shall have power to administer oaths, take testimony, subpoena and require the attendance of witnesses and the production of accounts, books, papers, records, and other documents, and issue commissions to take testimony. Subpoenas may be signed by any member of the board. In case of failure to obey a subpoena, and upon application by the board, any judge of a court of competent jurisdiction of the state in which the board is sitting or in which the person to whom the subpoena is directed may be found may make an order requiring compliance with the subpoena, and the court may punish failure to obey the order as a contempt. The provisions of this paragraph apply only in states that have adopted this article.
8. Unless the parties otherwise agree, the expenses and other costs of the arbitration shall be assessed and allocated among the parties by the board in such manner as it may determine. The commission shall fix a schedule of compensation for members of arbitration boards and of other allowable expenses and costs. No officer or employee of a state or local government who serves as a member of a board shall be entitled to compensation therefor unless he or she is required on account of his or her service to forego the regular compensation attaching to his or her public employment, but any such board member shall be entitled to expenses.
9. The board shall determine the disputed apportionment or allocation and any matters necessary thereto. The determinations of the board shall be final for purposes of making the apportionment or allocation, but for no other purpose.
10. The board shall file with the commission and with each tax agency represented in the proceeding: the determination of the board; the board’s written statement of its reasons therefor; the record of the board’s proceedings; and any other documents required by the arbitration rules of the commission to be filed.
11. The commission shall publish the determinations of boards together with the statements of the reasons therefor.
12. The commission shall adopt and publish rules of procedure and practice and shall file a copy of such rules and of any amendment thereto with the appropriate agency or officer in each of the party states.
13. Nothing contained herein shall prevent at any time a written compromise of any matter or matters in dispute, if otherwise lawful, by the parties to the arbitration proceeding.
1. This compact shall enter into force when enacted into law by any seven states. Thereafter, this compact shall become effective as to any other state upon its enactment thereof. The commission shall arrange for notification of all party states whenever there is a new enactment of the compact.
2. Any party state may withdraw from this compact by enacting a statute repealing the same. No withdrawal shall affect any liability already incurred by or chargeable to a party state prior to the time of such withdrawal.
3. No proceeding commenced before an arbitration board prior to the withdrawal of a state and to which the withdrawing state or any subdivision thereof is a party shall be discontinued or terminated by the withdrawal, nor shall the board thereby lose jurisdiction over any of the parties to the proceeding necessary to make a binding determination therein.
Nothing in this compact shall be construed to:
(a) Affect the power of any state or subdivision thereof to fix rates of taxation, except that a party state shall be obligated to implement article III 2. of this compact.
(b) Apply to any tax or fixed fee imposed for the registration of a motor vehicle or any tax on motor fuel, other than a sales tax: Provided that the definition of “tax” in article VIII 9. may apply for the purposes of that article and the commission’s powers of study and recommendation pursuant to article VI 3. may apply.
(c) Withdraw or limit the jurisdiction of any state or local court or administrative officer or body with respect to any person, corporation, or other entity, or subject matter, except to the extent that such jurisdiction is expressly conferred by or pursuant to this compact upon another agency or body.
(d) Supersede or limit the jurisdiction of any court of the United States.
This compact shall be liberally construed so as to effectuate the purposes thereof. The provisions of this compact shall be severable and if any phrase, clause, sentence, or provision of this compact is declared to be contrary to the constitution of any state or of the United States or the applicability thereof to any government, agency, person, or circumstance is held invalid, the validity of the remainder of this compact and the applicability thereof to any government, agency, person, or circumstance shall not be affected thereby. If this compact shall be held contrary to the constitution of any state participating therein, the compact shall remain in full force and effect as to the remaining party states and in full force and effect as to the state affected as to all severable matters.
","history":"(Acts 1967, No. 395, p. 982, §1; Acts 1997, No. 97-625, p. 1048, §3; Act 2011-616, p. 1394, §1; Act 2021-1, §6.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39134,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38274,"codeId":30743,"versionId":25527,"parentId":19360,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-27-1.1","shortTitle":"Section 40-27-1.1","catchLine":"“Business Income” Defined.","title":"Section 40-27-1.1 “Business Income” Defined.","sectionRange":null,"content":"Notwithstanding any other provision of law to the contrary and specifically, Section 40-27-1, for purposes of Article IV of the Multistate Tax Compact, the term “business income” means income arising from transactions or activity in the course of the taxpayer’s trade or business; or income from tangible or intangible property if the acquisition, management, or disposition of the property constitute integral parts of the taxpayer’s trade or business operations; or gain or loss resulting from the sale, exchange, or other disposition of real property or of tangible or intangible personal property, if the property while owned by the taxpayer was operationally related to the taxpayer’s trade or business carried on in Alabama or operationally related to sources within Alabama, or the property was operationally related to sources outside this state and to the taxpayer’s trade or business carried on in Alabama; or gain or loss resulting from the sale, exchange, or other disposition of stock in another corporation if the activities of the other corporation were operationally related to the taxpayer’s trade or business carried on in Alabama while the stock was owned by the taxpayer. A taxpayer may have more than one trade or business in determining whether income is business income.
","history":"(Act 2001-1113, 4th Sp. Sess., p. 1178, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39135,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38275,"codeId":19372,"versionId":15363,"parentId":19360,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-27-2","shortTitle":"Section 40-27-2","catchLine":"State Representative on Multistate Tax Commission.","title":"Section 40-27-2 State Representative on Multistate Tax Commission.","sectionRange":null,"content":"The Commissioner of Revenue, State of Alabama, shall represent this state on the Multistate Tax Commission.
","history":"(Acts 1967, No. 395, p. 982, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39136,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38276,"codeId":19378,"versionId":15368,"parentId":19360,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-27-3","shortTitle":"Section 40-27-3","catchLine":"Alternate State Representative.","title":"Section 40-27-3 Alternate State Representative.","sectionRange":null,"content":"The member representing this state on the Multistate Tax Commission may be represented thereon by an alternate designated by him. Any such alternate shall be a principal assistant of the member of the commission in the agency which the member heads.
","history":"(Acts 1967, No. 395, p. 982, §3.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39137,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38277,"codeId":19383,"versionId":15372,"parentId":19360,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-27-4","shortTitle":"Section 40-27-4","catchLine":"Counsel for State Representative.","title":"Section 40-27-4 Counsel for State Representative.","sectionRange":null,"content":"The counsel, state Department of Revenue, State of Alabama, or an assistant counsel of said department designated by him, shall serve as counsel for the member representing this state on the Multistate Tax Commission.
","history":"(Acts 1967, No. 395, p. 982, §4.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39138,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38278,"codeId":19387,"versionId":15377,"parentId":19360,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-27-5","shortTitle":"Section 40-27-5","catchLine":"Representatives from Subdivisions Affected by Compact.","title":"Section 40-27-5 Representatives from Subdivisions Affected by Compact.","sectionRange":null,"content":"The Governor, after consultation with representatives of local governments, shall appoint three persons who are representatives of subdivisions affected or likely to be affected by the Multistate Tax Compact. The member of the commission representing this state, and any alternate designated by him, shall consult regularly with these appointees in accordance with article VI 1 (b) of the compact.
","history":"(Acts 1967, No. 395, p. 982, §5.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39139,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38279,"codeId":19394,"versionId":15383,"parentId":19360,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-27-6","shortTitle":"Section 40-27-6","catchLine":"Interstate Audits.","title":"Section 40-27-6 Interstate Audits.","sectionRange":null,"content":"Article VIII of the Multistate Tax Compact relating to interstate audits shall be in force in and with respect to the State of Alabama.
","history":"(Acts 1967, No. 395, p. 982, §6.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39140,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38280,"codeId":19402,"versionId":null,"parentId":40,"effectiveDate":null,"supersessionDate":null,"type":"Chapter","displayId":"28","shortTitle":"Chapter 28","catchLine":"Distribution of Payments Made in Lieu of Taxes.","title":"Chapter 28 Distribution of Payments Made in Lieu of Taxes.","sectionRange":"§40-28-1 to §40-28-6","content":null,"history":null,"numChildren":6,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":39141,"hierarchyLevel":1,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38281,"codeId":19405,"versionId":15392,"parentId":19402,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-28-1","shortTitle":"Section 40-28-1","catchLine":"Definitions.","title":"Section 40-28-1 Definitions.","sectionRange":null,"content":"The following words, terms and phrases, where used in this chapter, shall have the following respective meanings, except where the context clearly indicates a different meaning:
(1) T.V.A. The Tennessee Valley Authority.
(2) A.B.C. The Alcoholic Beverage Control Board.
(3) A.B.C. PAYMENTS. Any moneys which are distributed by law to the several local governments from the taxes and/or profits of the Alcoholic Beverage Control Board.
(4) BOOK VALUE. The value that T.V.A. carries on its books for its property.
(5) INDUSTRIAL POWER SALES. That power which is sold by T.V.A. directly to individual concerns as reported and determined by T.V.A.
(6) IN-LIEU-OF-TAXES PAYMENTS. Those payments made directly to the state of Alabama and not to local governments or distributors under federal statute (16 USC, §831) by T.V.A. which are in lieu of all taxes to all levels of government in Alabama.
(7) PROPERTY. The property of T.V.A. allocated to or associated with the power program of T.V.A. as reported by T.V.A.
(8) SERVED or T.V.A.-SERVED. Provided power that is produced by T.V.A. and sold through municipal or cooperative distributors or T.V.A. as reported by T.V.A.
(9) WET. The local governments in areas which permit the sale of alcoholic beverages.
(10) DRY. The local governments in areas which prohibit the sale of alcoholic beverages.
","history":"(Acts 1979, No. 79-786, p. 1425, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39142,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38282,"codeId":19411,"versionId":32831,"parentId":19402,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-28-2","shortTitle":"Section 40-28-2","catchLine":"Distribution of Tennessee Valley Authority Payments.","title":"Section 40-28-2 Distribution of Tennessee Valley Authority Payments.","sectionRange":null,"content":"(a) Beginning in the fiscal year ending September 30, 1980, the State of Alabama will annually transfer to the counties in Alabama served by T.V.A. a portion of the in-lieu-of-taxes payments made by T.V.A. to the State of Alabama. Such transfer of funds shall be according to the following schedule:
| For the Fiscal Year: | Percentage of In-Lieu-of-Taxes |
|---|---|
| Payments Transferred to | |
| T.V.A.-Served Counties by the State | |
| Shall Be: | |
| 1979-80 | 20% |
| 1980-81 | 30% |
| 1981-82 | 40% |
| 1982-83 | 50% |
| 1983-84 | 60% |
| 1984-85 | 70% |
| 1985-86 through 2004-05 | 75% |
| 2005-2006 and each fiscal year thereafter | 78% |
(b) The state shall distribute the in-lieu-of-taxes payments each fiscal year to each of the counties served by T.V.A., and the three percent increases after September 30, 2005, generated by the amendments to this section at the 2006 Regular Session of the Legislature shall be allocated by local legislation.
(c)(1) In addition to the distribution provided for in subsection (a) of this section, the state shall distribute each fiscal year five percent of the in-lieu-of-taxes payments to the dry counties and municipalities therein which are not served by T.V.A. Said five percent shall be distributed on the same proportionate basis that each such county received in fiscal year 1978-79 from A.B.C. payments as compared to the total A.B.C. payments received by all dry counties not served by T.V.A. during the same fiscal year. The distribution of such in-lieu-of-taxes payments between each dry non-T.V.A.-served county and the municipalities located therein shall be made pro rata on the basis of A.B.C. payments received by each such jurisdiction in the fiscal year 1979 to the total A.B.C. payments to the county and all municipalities in such county in the fiscal year 1979. Such distribution to the municipalities will be administered by the county governing body.
Beginning in the fiscal year ending September 30, 2010, the distribution provided in this subsection to the dry counties and municipalities that are not served by T.V.A. shall be reduced by an amount equal to the funds allocated to those dry counties and municipalities from liquor tax revenues pursuant to Section 40-28-5 until the aggregate annual amount of revenue received by those dry counties and municipalities from the provisions of Section 40-28-5 is equal to the amount of T.V.A. payments distributed to the dry counties and municipalities therein pursuant to this subdivision for the fiscal year ending September 30, 2009. Until the aggregate annual amount of liquor tax distributions to the dry counties and municipalities not served by T.V.A. provided in Section 40-28-5 is equal to the amount of T.V.A. payments distributed to the dry counties and municipalities therein pursuant to this subdivision for the fiscal year ending September 30, 2009, the annual amount by which any payments to such counties and municipalities are reduced by liquor tax revenues pursuant to Section 40-28-5 shall be distributed to the counties served by T.V.A. Thereafter, all payments distributed pursuant to this subsection shall be distributed to the counties served by T.V.A. The distribution to the counties served by T.V.A. provided in this subsection is to be allocated in the same manner as the increase generated by the amendment to this section made during the 2006 Regular Session of the Legislature that now appears as subsection (b).
Notwithstanding the foregoing, the distributions to Limestone County, to Madison County, to Marshall County, and to Morgan County provided in this subsection shall be allocated by local law.
The additional distributions to the above listed counties pursuant to Act 2010-135 shall be held by the respective county separate and apart from other T.V.A. distributions and shall not be expended by the county until the effective date of the local law providing for the allocation of such funds.
(2) Effective for transfers after July 1, 2006, the distribution to the State General Fund shall remain at the level received on July 1, 2006, until the level received attains the amount of seventeen million eight hundred forty thousand two hundred thirty-three dollars ($17,840,233) and thereafter the state shall receive 17 percent of the total amount of the in-lieu-of-taxes payments.
(d) Any T.V.A.-served dry county which is eligible to receive funds under Section 40-28-3 shall receive from that portion of the in-lieu-of-taxes payments not less than that amount which the county received in A.B.C. payments in the fiscal year 1978-79.
","history":"(Acts 1978, 2nd Ex. Sess., No. 92, p. 1786, §1; Acts 1979, No. 79-306, p. 458; Acts 1979, No. 79-786, p. 1425, §2; Act 2006-655, p. 1792, §1; Act 2010-135, p. 190, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39143,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38283,"codeId":19415,"versionId":15400,"parentId":19402,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-28-3","shortTitle":"Section 40-28-3","catchLine":"Counties to Share Payments with Municipalities Served by T.v.a.; Basis for Allocation of Payments to Counties Served by T.v.a.","title":"Section 40-28-3 Counties to Share Payments with Municipalities Served by T.v.a.; Basis for Allocation of Payments to Counties Served by T.v.a.","sectionRange":null,"content":"(a) Distribution of the in-lieu-of-taxes payments of T.V.A. by the state to the served counties shall be made to the governing bodies of served counties. Any county receiving a share of said payments that has within its boundaries a municipality or part thereof that is served in whole or in part by T.V.A. shall share in the county’s payments with said municipality receiving the same amount as the ratio of T.V.A.-served population of the municipality bears to the T.V.A.-served population of the entire county. However, the Legislature may, by general or local laws, prescribe other distribution within such counties to local governments and/or public agencies therein.
(b) The in-lieu-of-taxes payments distributed each year to the served counties shall be as follows:
(1) Eighty percent of the amount of such distribution to the served counties shall be distributed among the counties in the same proportion that the amount of T.V.A. power sales revenue generated in that county less industrial power sales bears to the total amount of T.V.A. power sales revenue generated in all counties less industrial power sales in all served counties.
(2) Ten percent of the amount of such distribution to the served counties shall be distributed among the counties in the same proportion that the book value amount of the T.V.A.‘s property in each county bears to the total book value of all T.V.A.‘s property in all counties served by the T.V.A.
(3) Ten percent of the amount of such percentage of payments shall be distributed among the counties in the same proportion that the T.V.A.‘s industrial power sales in each county bears to the total amount of T.V.A.’s industrial power sales in all served counties of the state.
","history":"(Acts 1978, 2nd Ex. Sess., No. 92, p. 1786, §2; Acts 1979, No. 79-786, p. 1425, §3.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39144,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38284,"codeId":19419,"versionId":15404,"parentId":19402,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-28-4","shortTitle":"Section 40-28-4","catchLine":"When Payments to Be Made to Counties by State; Manner of Making Payments.","title":"Section 40-28-4 When Payments to Be Made to Counties by State; Manner of Making Payments.","sectionRange":null,"content":"Payments by the state to the counties pursuant to this chapter will be made within 30 days after the state Department of Revenue receives each payment from T.V.A., and such payments shall be made by warrants drawn by the Comptroller upon said T.V.A. funds in the State Treasury and in such amounts as certified by the Department of Revenue.
","history":"(Acts 1978, 2nd Ex. Sess., No. 92, p. 1786, §3; Acts 1979, No. 79-786, p. 1425, §4.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39145,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38285,"codeId":40827,"versionId":33026,"parentId":19402,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-28-5","shortTitle":"Section 40-28-5","catchLine":"Reallocation of Certain Liquor Tax Revenues.","title":"Section 40-28-5 Reallocation of Certain Liquor Tax Revenues.","sectionRange":null,"content":"(a) Beginning with the fiscal year ending September 30, 2010, the Public Welfare Trust Fund, the Special Mental Health Fund, and the State General Fund shall annually receive the same amount of revenue from the state taxes on spirituous and vinous liquors pursuant to Sections 28-3-201, 28-3-202, 28-3-203, 28-3-204, and 28-3-205, respectively, that such entities received for the fiscal year ending September 30, 2009, until the annual growth in such receipts above this amount equals the amount of T.V.A. payments distributed to the dry counties and municipalities therein pursuant to subsection (c)(1) of Section 40-28-2, for the fiscal year ending September 30, 2009. Thereafter, in addition to the above amounts, the Public Welfare Trust Fund, the Special Mental Health Fund, and the State General Fund shall annually receive the amount of growth in those liquor tax receipts that exceeds the amount of T.V.A. payments distributed to the dry counties and municipalities therein pursuant to subsection (c)(1) of Section 40-28-2, for the fiscal year ending September 30, 2009.
(b) Beginning with the fiscal year ending September 30, 2010, an amount up to the amount of T.V.A. payments distributed to the dry counties and municipalities therein pursuant to subsection (c)(1) of Section 40-28-2, for the fiscal year ending September 30, 2009, of the growth in state taxes on spirituous and vinous liquors provided in subsection (a) above shall be distributed to the dry counties and municipalities therein that are not served by T.V.A. and that receive T.V.A. in-lieu-of-taxes payments pursuant to subsection (c)(1) of Section 40-28-2. Notwithstanding subsection (a), in addition to the distributions provided for in this subsection, the state shall distribute to the dry counties and dry municipalities therein each fiscal year from the state taxes on spirituous and vinous liquors an amount equal to the percentage growth in T.V.A. in-lieu-of-taxes payments received by the state.
(c) In addition to the above distribution, for the fiscal year ending September 30, 2011, there shall be an adjustment to increase or decrease the amount of state taxes on spirituous liquors distributed to the non-served T.V.A. counties as necessary to make the total amount paid to such counties for the fiscal year ending September 30, 2011, equal to the amount of T.V.A. payments such counties would have received prior to the amended distribution provided in Act 2010-135.
","history":"(Act 2010-135, p. 190, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39146,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38286,"codeId":58659,"versionId":50635,"parentId":19402,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-28-6","shortTitle":"Section 40-28-6","catchLine":"Distributions to an Agricultural Authority in Certain Counties.","title":"Section 40-28-6 Distributions to an Agricultural Authority in Certain Counties.","sectionRange":null,"content":"In any county where an agricultural authority has been incorporated prior to September 1, 2017, under Article 3, commencing with Section 11-20-70 of Chapter 20, Title 11, for the purpose of constructing and operating facilities to promote agricultural business and economic development, 70 percent of the payments made to the county commission of the county pursuant to Section 40-28-2 shall be distributed by the county, upon approval of a majority vote of the local legislative delegation residing in the county, to the agricultural authority to be used for the purposes of the authority, notwithstanding any other general or local law to the contrary.","history":"(Act 2023-254, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39147,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38287,"codeId":19424,"versionId":null,"parentId":40,"effectiveDate":null,"supersessionDate":null,"type":"Chapter","displayId":"29","shortTitle":"Chapter 29","catchLine":"Enforcement of Tax Laws.","title":"Chapter 29 Enforcement of Tax Laws.","sectionRange":"§40-29-1 to §40-29-130","content":null,"history":null,"numChildren":7,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":39148,"hierarchyLevel":1,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38288,"codeId":19425,"versionId":null,"parentId":19424,"effectiveDate":null,"supersessionDate":null,"type":"Article","displayId":"1","shortTitle":"Article 1","catchLine":"General Provisions.","title":"Article 1 General Provisions.","sectionRange":"§40-29-1 to §40-29-2","content":null,"history":null,"numChildren":2,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":39149,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38289,"codeId":19427,"versionId":15408,"parentId":19425,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-1","shortTitle":"Section 40-29-1","catchLine":"Short Title.","title":"Section 40-29-1 Short Title.","sectionRange":null,"content":"This chapter shall be known and may be cited as the “Tax Enforcement and Compliance Act” or “TECA.”
","history":"(Acts 1983, 4th Ex. Sess., No. 83-891, p. 128, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39150,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38290,"codeId":19429,"versionId":15409,"parentId":19425,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-2","shortTitle":"Section 40-29-2","catchLine":"Applicability of Chapter; Purpose; Legislative Intent.","title":"Section 40-29-2 Applicability of Chapter; Purpose; Legislative Intent.","sectionRange":null,"content":"The provisions of this chapter shall apply to every public tax, license or fee, and/or any penalty or interest payable thereon, levied under the provisions of any existing or hereafter enacted law which is codified in this title or any other title and is collectible by the Commissioner of Revenue.
The purpose of this chapter is to supplement and clarify existing provisions of the general law relating to the enforcement and collection of taxes. The provisions of this chapter shall be complementary and in addition to all other provisions of law. In the event of any conflict between the provisions of this chapter and those of any other specific statutory provisions contained in other chapters of this title, or of any other title, it is hereby declared to be the legislative intent that, to the extent such other specific provisions are inconsistent with or different from the provisions of this chapter, the provisions of this chapter shall prevail. It is the intent of the Legislature that no part of this chapter shall be construed so as to supersede any due process requirements presently in effect under this title.
","history":"(Acts 1983, 4th Ex. Sess., No. 83-891, p. 128, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39151,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38291,"codeId":19434,"versionId":null,"parentId":19424,"effectiveDate":null,"supersessionDate":null,"type":"Article","displayId":"2","shortTitle":"Article 2","catchLine":"Collections.","title":"Article 2 Collections.","sectionRange":"§40-29-20 to §40-29-34","content":null,"history":null,"numChildren":17,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":39152,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38292,"codeId":19436,"versionId":15413,"parentId":19434,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-20","shortTitle":"Section 40-29-20","catchLine":"Lien for Taxes - Generally.","title":"Section 40-29-20 Lien for Taxes - Generally.","sectionRange":null,"content":"If any person liable to pay any tax, other than ad valorem tax, neglects or refuses to pay the same, the amount (including any interest, additional amount, addition to tax, or assessable penalty together with any costs that may accrue in addition thereto) shall be a lien in favor of the State of Alabama upon all property and rights to property, whether real or personal, tangible or intangible, belonging to such person. The Department of Revenue shall give notice of lien to the taxpayer.
If the taxpayer shall file with the Department of Revenue a bond in double the amount of the lien filed, with surety or sureties to be either a surety company authorized to do business in Alabama or such individual property owners, not less than three in number, as are recommended by the judge of probate of the county in which the notice of lien is recorded, conditioned to pay all such tax, interest penalty, additional amount or addition to such tax, together with any costs which may occur in addition thereto as may be assessed against the taxpayer, principal in said bond, the Commissioner of Revenue or his delegate, shall withdraw and release said lien filed under the provisions of this section, and upon a determination that the said taxpayer owes any of said taxes to the state, the assessment (judgment) therefor shall be entered against said taxpayer and the surety or sureties on said bond; and, if not paid within 30 days from the date of said final assessment (judgment), then execution shall issue therefor against said principal and the surety or sureties on said bond. If the bond hereinabove provided for is not given and approved by the said commission, and a final assessment (judgment) is entered against said taxpayer and he duly and legally appeals therefrom within the time and in the manner provided for by this title, and the clerk or register of the court to which the appeal has been taken duly and legally approves the bond required for an appeal or the said taxpayer against whom the said assessment was entered by the Department of Revenue shall, within 30 days from the date of the assessment, pay the amount thereof to the state, then, in either of said events, the Commissioner of Revenue shall cancel or release from record said lien.
","history":"(Acts 1983, 4th Ex. Sess., No. 83-891, p. 128, §3; Acts 1992, No. 92-186, p. 349, §74.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39153,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38293,"codeId":53182,"versionId":45620,"parentId":19434,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-20.1","shortTitle":"Section 40-29-20.1","catchLine":"Lien for Taxes - Collection Firms Prohibited from Recovering Certain Expenses from Taxpayers.","title":"Section 40-29-20.1 Lien for Taxes - Collection Firms Prohibited from Recovering Certain Expenses from Taxpayers.","sectionRange":null,"content":"(a) Notwithstanding Section 40-29-20, or any other law to the contrary, a private auditing or collecting firm may not recover any of the following costs from a taxpayer:
(1) Professional service fees to include, but not be limited to, attorney fees and charges for accountant services.
(2) Travel costs.
(3) Salary or personnel-related expenses of the firm.
(4) Auditing or collecting related costs.
(b) For purposes of this section, a private auditing or collecting firm has the same definition as provided in Section 40-2A-3.
","history":"(Act 2020-31, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39154,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38295,"codeId":19439,"versionId":15415,"parentId":19434,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-21","shortTitle":"Section 40-29-21","catchLine":"Lien for Taxes - Term.","title":"Section 40-29-21 Lien for Taxes - Term.","sectionRange":null,"content":"Unless another date is specifically fixed by law, the lien imposed by Section 40-29-20 shall arise at the time the assessment list, return therefor or the payment thereof, whichever is prior, was due to have been filed with or made to the Department of Revenue, and shall continue until the liability for the amount so assessed (or a judgment against the taxpayer arising out of such liability) is satisfied or becomes unenforceable by reason of lapse of time.
","history":"(Acts 1983, 4th Ex. Sess., No. 83-891, p. 128, §4.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39155,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38296,"codeId":19446,"versionId":24888,"parentId":19434,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-22","shortTitle":"Section 40-29-22","catchLine":"Lien for Taxes - Validity and Priority Against Certain Persons.","title":"Section 40-29-22 Lien for Taxes - Validity and Priority Against Certain Persons.","sectionRange":null,"content":"(a) Purchasers, holders of security interests, mechanic’s lienors, and judgment lien creditors. The lien imposed by Section 40-29-20 shall not be valid as against any purchaser, holder of a security interest, mechanic’s lienor, or judgment lien creditor until notice thereof which meets the requirements of subsection (f) has been filed by the Commissioner of Revenue or his delegate, and shall not be perfected as against any purchaser, holder of a security interest, mechanic’s lienor, or judgment lien creditor until the date such notice is filed.
(b) Protection for certain interest even though notice filed. Even though notice of a lien imposed by Section 40-29-20 has been filed, such lien shall not be valid:
(1) SECURITIES. With respect to a security (as defined in subsection (g)(4)):
a. As against a purchaser of such security who at the time of purchase did not have actual notice or knowledge of the existence of such lien; and
b. As against a holder of a security interest in such security who, at the time such interest came into existence, did not have actual notice or knowledge of the existence of such lien.
(2) MOTOR VEHICLES. With respect to a motor vehicle (as defined in subsection (g)(3)), as against a purchaser of such motor vehicle, if:
a. At the time of the purchase such purchaser did not have actual notice or knowledge of the existence of such lien; and
b. Before the purchaser obtains such notice or knowledge, he has acquired possession of such motor vehicle and has not thereafter relinquished possession of such motor vehicle to the seller or his agent.
(3) PERSONAL PROPERTY PURCHASED AT RETAIL. With respect to tangible personal property purchased at retail, as against a purchaser in the ordinary course of the seller’s trade or business, unless at the time of such purchase such purchaser intends such purchase to (or knows such purchase will) hinder, evade, or defeat the collection of any tax under this title.
(4) PERSONAL PROPERTY PURCHASED IN CASUAL SALE. With respect to household goods, personal effects, or other tangible personal property purchased (not for resale) in a casual sale for less than $250, as against the purchaser, but only if such purchaser does not have actual notice or knowledge (A) of the existence of such lien, or (B) that this sale is one of a series of sales.
(5) PERSONAL PROPERTY SUBJECT TO POSSESSORY LIEN. With respect to tangible personal property subject to a lien securing the reasonable price of the repair or improvement of such property, as against a holder of such a lien, if such holder is, and has been, continuously in possession of such property from the time such lien arose.
(6) REAL PROPERTY TAX. With respect to real property, as against a holder of a lien upon such property, if such lien is entitled to priority over security interests in such property which are prior in time, and such lien secures payment of ad valorem tax.
(7) REAL PROPERTY SUBJECT TO A MECHANIC’S LIEN FOR CERTAIN REPAIRS AND IMPROVEMENTS. With respect to real property subject to a lien for repair or improvement as against a mechanic’s lienor but not to exceed $5,000.
(8) ATTORNEYS’ LIENS. With respect to a judgment or other amount in settlement of a claim or of a cause of action, as against an attorney who holds a lien upon or a contract enforceable against such judgment or amount, to the extent of his reasonable compensation for obtaining such judgment or procuring such settlement.
(9) CERTAIN INSURANCE CONTRACTS. With respect to a life insurance, endowment, or annuity contract, as against the organization which is the insurer under such contract, at any time:
a. Before such organization had actual notice or knowledge of the existence of such lien; or
b. After such organization had such notice or knowledge, with respect to advances required to be made automatically to maintain such contract in force under an agreement entered into before such organization had such notice or knowledge.
(c) Protection for certain commercial transactions financing agreements, etc.
(1) IN GENERAL. To the extent provided in this subsection, even though notice of a lien imposed by Section 40-29-20 has been filed, such lien shall not be valid with respect to a security interest which came into existence after tax lien filing but which:
a. Is in qualified property covered by the terms of a written agreement entered into before tax lien filing and constituting:
1. A commercial transactions financing agreement;
2. A real property construction or improvement financing agreement; or
3. An obligatory disbursement agreement; and
b. Is protected against a judgment lien arising, as of the time of tax lien filing, out of an unsecured obligation.
(2) COMMERCIAL TRANSACTIONS FINANCING AGREEMENT. For purposes of this subsection:
a. Definition. The term “commercial transactions financing agreement” means an agreement (entered into by a person in the course of his trade or business):
b. Limitation on qualified property. The term “qualified property,” when used with respect to a commercial transactions financing agreement, includes only commercial financing security acquired by the taxpayer before the forty-sixth day after the date of tax lien filing.
c. Commercial financing security defined. The term “commercial financing security” means (i) paper of a kind ordinarily arising in commercial transactions, (ii) accounts receivable, (iii) mortgages on real property, and (iv) inventory.
d. Purchaser treated as acquiring security interest. A person who satisfies paragraph a. by reason of clause (ii) thereof shall be treated as having acquired a security interest in commercial financing security.
(3) REAL PROPERTY CONSTRUCTION OR IMPROVEMENT FINANCING AGREEMENT. For purposes of this subsection:
a. Definition. The term “real property construction or improvement financing agreement” means an agreement to make cash disbursements to finance:
b. Limitation on qualified property. The term “qualified property,” when used with respect to a real property construction or improvement financing agreement, includes only:
1. In the case of subparagraph a1, the real property with respect to which the construction or improvement has been or is to be made;
2. In the case of subparagraph a2, the proceeds of the contract described therein; and
3. In the case of subparagraph a3, property subject to the lien imposed by Section 40-29-20 at the time of tax lien filing and the crop or the livestock or other animals referred to in subparagraph a3.
(4) OBLIGATORY DISBURSEMENT AGREEMENT. For purposes of this subsection:
a. Definition. The term “obligatory disbursement agreement” means an agreement (entered into by a person in the course of his trade or business) to make disbursements, but such an agreement shall be treated as coming within the term only to the extent of disbursements which are required to be made by reason of the intervention of the rights of a person other than the taxpayer.
b. Limitation on qualified property. The term “qualified property,” when used with respect to an obligatory disbursement agreement, means property subject to the lien imposed by Section 40-29-20 at the time of tax lien filing and (to the extent that the acquisition is directly traceable to the disbursements referred to in paragraph a) property acquired by the taxpayer after tax lien filing.
c. Special rules for surety agreements. Where the obligatory disbursement agreement is an agreement ensuring the performance of a contract between the taxpayer and another person:
1. The term “qualified property” shall be treated as also including the proceeds of the contract the performance of which was ensured; and
2. If the contract the performance of which was ensured was a contract to construct or improve real property, to produce goods, or to furnish services, the term “qualified property” shall be treated as also including any tangible personal property used by the taxpayer in the performance of such ensured contract.
(d) Forty-five day period for making disbursement. Even though notice of a lien imposed by Section 40-29-20 has been filed, such lien shall not be valid with respect to a security interest which came into existence after tax lien filing by reason of disbursements made before the forty-sixth day after the date of tax lien filing, or (if earlier) before the person making such disbursements had actual notice or knowledge of tax lien filing, but only if such security interest:
(1) Is in property (A) subject at the time of tax lien filing, to the lien imposed by Section 40-29-20, and (B) covered by the terms of a written agreement entered into before tax lien filing; and
(2) Is protected against a judgment lien arising, as of the time of tax lien filing, out of an unsecured obligation.
(e) Priority of interest and expenses. If the lien imposed by Section 40-29-20 is not valid as against a lien or security interest, the priority of such lien or security interest shall extend to:
(1) Any interest or carrying charges upon the obligation secured;
(2) The reasonable charges and expenses of an indenture trustee or agent holding the security interest for the benefit of the holder of the security interest;
(3) The reasonable expenses, including reasonable compensation for attorneys, actually incurred in collecting or enforcing the obligation secured;
(4) The reasonable costs of insuring, preserving, or repairing the property to which the lien or security interest relates;
(5) The reasonable costs of insuring payment of the obligation secured; and
(6) Amounts paid to satisfy any lien on the property to which the lien or security interest relates, but only if the lien so satisfied is entitled to priority over the lien imposed by Section 40-29-20, to the extent that any such item has the same priority as the lien or security interest to which it relates.
(f) Place for filing; form.
(1) PLACE FOR FILING. The notice referred to in subsection (a) shall be filed:
a. Real property. In the case of real property, in the probate office of the county in which the property subject to the lien is situated; and
b. Personal property. In the case of personal property, whether tangible or intangible, in the office (i) in which a financing statement would be filed to perfect a security interest with respect to such property pursuant to the Alabama Uniform Commercial Code, or (ii) of the Secretary of State, if a financing statement would not be required to be filed to perfect a security interest with respect to such property; provided, however, if the property is a motor vehicle (as defined under subdivision (g)(3) of this section), the tax lien shall be perfected in the same manner as a security interest is required to be perfected with respect to such motor vehicle. Such notice shall be effective as to any third party only when properly included by name in the index of such financing statements available for public inspection, and shall not be effective against a third party who relies upon a certification of such filings obtained in the manner provided in Section 7-9A-523 if such notice is omitted from the certification. Each filing officer shall reflect such notices in any certificate provided pursuant to Section 7-9A-523.
(2) FORM. The form and content of the notice referred to in subsection (a) shall be prescribed by the Commissioner of Revenue or his delegate. Such notice shall be valid notwithstanding any other provision of law regarding the form or content of a notice of lien.
(g) Definitions. For purposes of this section, the following terms shall have the following meanings, respectively, unless the context clearly indicates otherwise:
(1) SECURITY INTEREST. Any interest in property acquired by contract for the purpose of securing payment or performance of an obligation or indemnifying against loss or liability. A security interest exists at any time (A) if, at such time, the property is in existence and the interest has become protected against a subsequent judgment lien arising out of an unsecured obligation, and (B) to the extent that, at such time, the holder has parted with money or money’s worth.
(2) MECHANIC’S LIENOR. Any person who has a lien on real property (or on the proceeds of a contract relating to real property) for services, labor, or materials furnished in connection with the construction or improvement of such property. For purposes of the preceding sentence, a person has a lien on the earliest date such lien becomes valid against subsequent purchasers without actual notice, but not before he begins to furnish the services, labor, or materials.
(3) MOTOR VEHICLE. A self-propelled vehicle which is registered for highway use under the laws of any state or foreign country.
(4) SECURITY. Any bond, debenture, note, or certificate or other evidence of indebtedness, issued by a corporation or a government or political subdivision thereof, with interest coupons or in registered form, share of stock, voting trust certificate, or any certificate of interest or participation in, certificate of deposit or receipt for, temporary or interim certificate for, or warrant or right to subscribe to or purchase, any of the foregoing; negotiable instrument; or money.
(5) TAX LIEN FILING. The filing of notice (referred to in subsection (a)) of the lien imposed by Section 40-29-20.
(6) PURCHASER. A person who, for adequate and full consideration in money or money’s worth, acquires an interest (other than a lien or security interest) in property which is valid against subsequent purchasers without actual notice. In applying the preceding sentence for purposes of subsection (a) of this section:
a. A lease of property;
b. A written executory contract to purchase or lease property;
c. An option to purchase or lease property or any interest therein; or
d. An option to renew or extend a lease of property, which is not a lien or security interest shall be treated as an interest in property.
(h) Special rules.
(1) ACTUAL NOTICE OR KNOWLEDGE. For purposes of this article, an organization shall be deemed for purposes of a particular transaction to have actual notice or knowledge of any fact from the time such fact is brought to the attention of the individual conducting such transaction, and in any event for the time such fact would have been brought to such individual’s attention if the organization had exercised due diligence. An organization exercises due diligence if it maintains reasonable routines for communicating significant information to the person conducting the transaction and there is reasonable compliance with the routine. Due diligence does not require an individual acting for the organization to communicate information unless such communication is part of his regular duties or unless he has reason to know of the transaction and that the transaction would be materially affected by the information.
(2) SUBROGATION. Where one person is subrogated to the rights of another with respect to a lien or interest, such person shall be subrogated to such rights for purposes of any lien imposed by Section 40-29-20.
(3) DISCLOSURE OF AMOUNT OF OUTSTANDING LIEN. If a notice of lien has been filed pursuant to subsection (f), the commissioner or his delegate is authorized to provide by regulations the extent to which, and the conditions under which, information as to the amount of the outstanding obligation secured by the lien may be disclosed.
","history":"(Acts 1983, 4th Ex. Sess., No. 83-891, p. 128, §5; Act 2001-481, p. 64, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39156,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38297,"codeId":19453,"versionId":15423,"parentId":19434,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-23","shortTitle":"Section 40-29-23","catchLine":"Levy and Distraint.","title":"Section 40-29-23 Levy and Distraint.","sectionRange":null,"content":"(a) Authority of commissioner or delegate. If any person liable to pay any final assessment of tax neglects or refuses to pay the same or fails to appeal such final assessment within 30 days, it shall be lawful for the commissioner to collect such tax (and such further sum as shall be sufficient to cover the expenses of the levy) as herein provided or as otherwise provided by law. The commissioner may levy upon all property and rights for property belonging to such person or on which there is a lien as provided in this chapter for the payment of such tax. If the Commissioner of Revenue or his delegate makes a finding that the collection of such tax is in jeopardy, notice and demand for immediate payment of such tax may be made and, upon failure or refusal to pay such tax, collection thereof by levy shall be lawful without regard to the 30-day period provided in this chapter.
(b) Seizure and sale of property. The term “levy” as used in this chapter includes the power of distraint and seizure by any lawful means. Except as otherwise provided in subdivision (d)(3), a levy shall extend only to property possessed and obligations existing at the time thereof. In any case in which the Commissioner of Revenue may levy upon property or rights to property, he may seize and sell such property or rights to property (whether real or personal, tangible or intangible), as prescribed by law. The Department of Revenue may become the purchaser of any property seized by bidding up to the amount of the final assessment and accrued interest plus any costs associated with such sale. The amount of any successful bid by the department, less costs, shall be credited to the amount owing on the unpaid final assessments. If the department shall become the purchaser of any property at such sale, then the department may resell the property by either public auction or public sale under sealed bids.
(c) Successive seizures. Whenever any property or right to property upon which levy has been made by virtue of subsection (a) is not sufficient to satisfy the claim of the State of Alabama for which levy is made, the Commissioner of Revenue or his delegate may, thereafter, and as often as may be necessary, proceed to levy in like manner upon any other property liable to levy of the person against whom such claim exists, until the amount due from him, together with all expenses, is fully paid.
(d) Requirement of notice before levy.
(1) IN GENERAL. Levy may be made under subsection (a) upon the salary or wages or other property of any person with respect to any unpaid tax only after the Commissioner of Revenue has notified such person in writing of his intention to make such levy.
(2) THIRTY-DAY REQUIREMENT. The notice required under subdivision (1) shall be served in any one of the following methods:
a. Given in person;
b. Left at the dwelling or usual place of business of such person; or
c. Sent by certified or registered mail to such person’s last known address; no less than 30 days before the day of the levy.
(3) JEOPARDY. Subdivision (1) shall not apply to a levy if the Commissioner of Revenue has made a finding under the last sentence of subsection (a) that the collection of tax is in jeopardy.
(e) Continuing levy on salary and wages.
(1) EFFECT OF LEVY. The effect of a levy on salary or wages payable to or received by a taxpayer shall be continuous from the date such levy is first made until the liability out of which such levy arose is satisfied; provided, however, that no such levy made shall be more than 25 percent of the total wages or salary due the taxpayer.
(2) RELEASE AND NOTICE OF RELEASE. With respect to a levy described in subdivision (1), the Commissioner of Revenue shall within 10 days release the levy when the liability out of which such levy arose is satisfied and shall promptly notify the person upon whom such levy was made that such levy has been released.
(f) Special rule for levies on banks. Any financial institution (as defined in Section 40-16-1) shall be allowed 21 days following the date of service to comply with a levy served by or on behalf of the department.
","history":"(Acts 1983, 4th Ex. Sess., No. 83-891, p. 128, §6; Acts 1992, No. 92-186, p. 349, §75.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39157,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38298,"codeId":51379,"versionId":44038,"parentId":19434,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-23.1","shortTitle":"Section 40-29-23.1","catchLine":"Development and Operation of Financial Institution Data Match Program.","title":"Section 40-29-23.1 Development and Operation of Financial Institution Data Match Program.","sectionRange":null,"content":"(a) For purposes of this section the following terms shall have the following meanings:
(1) ACCOUNT. A demand deposit account, checking account, negotiable withdrawal order account, savings account, time deposit account, or money-market mutual fund account.
(2) ACCOUNT HOLDER. A person or persons authorized to perform transactions on behalf of an account.
(3) DELINQUENT TAXPAYER. A taxpayer with an outstanding tax liability for which a final assessment has been entered that is no longer subject to appeal under the Alabama Taxpayer’s Bill of Rights, so that the assessment is final, due, and owing, and for whom both of the following conditions are true:
a. The tax liability remains unpaid after 10 days from the issuance of a final notice before seizure by the department.
b. The person is not making current timely installment payments on the tax liability under agreement with the department.
(4) DEPARTMENT. The Alabama Department of Revenue.
(5) DESIGNATED DATA PROCESSING AGENT. A person authorized by a financial institution and approved by the department to receive information necessary to implement the financial data match program established under this section.
(6) FINAL ASSESSMENT. Has the same meaning as in Section 40-2A-3.
(7) FINANCIAL INSTITUTION. Includes depository institutions, as defined in Section 3(c) of the Federal Deposit Insurance Act, 12 U.S.C. §1813(c) and as amended from time to time; institution-affiliated parties, as defined in Section 3(u) of 12 U.S.C. §1813(u) and as amended from time to time; any federal credit union or state credit union, as defined in Section 101 of the Federal Credit Union Act, 12 U.S.C. §1752 and as amended from time to time, including an institution-affiliated party of a credit union, as defined in Section 206(r) of the Federal Credit Union Act, 12 U.S.C. § 1786(r) and as amended from time to time; and any benefit association, insurance company, safe deposit company, money market mutual fund, or similar entity doing business or authorized to do business in the state.
(8) PERSON. As defined in Section 40-1-1.
(9) TAXPAYER. As defined in Section 40-2A-3.
(b) The department and a financial institution doing business or authorized to do business in Alabama, or its designated data processing agent, may enter into an agreement to develop and operate a financial institution data match (FIDM) program utilizing automated data exchanges to the maximum extent feasible, to provide the following identifying information, to the extent available for each delinquent taxpayer who maintains an account with the financial institution, to the department on a calendar quarter basis:
(1) Name.
(2) Record address.
(3) Social Security number.
(4) Federal employer identification number.
(5) Other tax identification number.
(6) Other identifying information that may be a part of the records of the financial institution.
(c) No penalty shall be assessed or enforced, nor shall the department take any adverse action, against a financial institution based on its decision not to enter into an FIDM agreement with the department.
(d) The department may pay a reasonable fee to a financial institution for conducting a data match, in accordance with the terms of the parties’ voluntary agreement, not to exceed the actual costs incurred by the financial institution.
(e)(1) Unless otherwise required by law, a financial institution furnishing a report or providing information to the department pursuant to this section shall not disclose to an account holder that any identifying information of that delinquent taxpayer has been received from or furnished to the department.
(2) A financial institution may disclose to its depositors or account holders that the department has the authority to request certain identifying information on certain depositors or account holders under the financial institution data match system for state tax collection purposes.
(f) A financial institution shall not incur any obligation or liability to an account holder or any person arising from any of the following activities:
(1) Furnishing information as required by this section and applicable rules.
(2) Failing to disclose to a delinquent taxpayer who is an account holder that any identifying information of the delinquent taxpayer was included in the data exchange with the department as required by this section.
(3) Any other action taken in good faith to comply with the requirements of this section.
(g) All information provided by a financial institution under this section is confidential and is available to the department or its agents for use only to the extent necessary for the proper administration of matters administered by the department.
(h) The first data exchange for purposes of matching delinquent taxpayer records to financial institution account holder records shall occur no earlier than January 1, 2020.
(i) This section is not intended to and does not alter or abrogate statutory procedures and due process protections pursuant to which the department executes a garnishment against the property of a delinquent taxpayer in the possession or control of a financial institution, including the requirement of notice of garnishment to the taxpayer and the institution, and related due process requirements and protections.
(j) The department shall adopt rules for the implementation and administration of this section.
","history":"(Act 2019-285, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39158,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38299,"codeId":19458,"versionId":15427,"parentId":19434,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-24","shortTitle":"Section 40-29-24","catchLine":"Surrender of Property Subject to Levy; “Person” Defined.","title":"Section 40-29-24 Surrender of Property Subject to Levy; “Person” Defined.","sectionRange":null,"content":"(a) Requirement. Except as otherwise provided in subsection (b), any person in possession of (or obligated with respect to) property or rights to property subject to levy upon which a levy has been made shall, upon demand of the Commissioner of Revenue or his delegate, surrender such property or rights (or discharge such obligation) to the Commissioner of Revenue or his delegate, except such part of the property or rights as is, at the time of such demand, subject to an attachment or execution under any judicial process.
(b) Enforcement of levy.
(1) EXTENT OF PERSONAL LIABILITY. Any person who fails or refuses to surrender any property or rights to property, subject to levy, upon demand by the Commissioner of Revenue, shall be liable in his own person and estate to the State of Alabama in a sum equal to the value of the property or rights not so surrendered, but not exceeding the amount of taxes for the collection of which such levy has been made, together with costs and interest on such sum at an annual rate established by law from the date of such levy (or, in the case of a levy described in subdivision (3) of subsection (d) of Section 40-29-23, from the date such person would otherwise have been obligated to pay over such amounts to the taxpayer). Any amount (other than costs and the 10 percent penalty provided in subdivision (2) below) recovered under this subdivision shall be credited against the tax liability for the collection of which such levy was made.
(2) PENALTY FOR VIOLATION. In addition to the personal liability imposed by subdivision (1), if any person required to surrender property or rights to property fails or refuses to surrender such property or rights to property without reasonable cause, such person shall be liable for a penalty equal to 10 percent of the amount recoverable from the property under his control. No part of such penalty shall be credited against the tax liability for the collection of which such levy was made.
(c) Effect of honoring levy. Any person in possession of (or obligated with respect to) property or rights to property subject to levy upon which a levy has been made who, upon demand by the Commissioner of Revenue or his delegate, surrenders such property or rights to property (or discharges such obligation) to the Commissioner of Revenue or his delegate, or who pays a liability under subdivision (b)(1), shall be discharged from any obligation or liability to the delinquent taxpayer with respect to such property or rights to property arising from such surrender or payment.
(d) “Person” defined. The term “person” as used in subsection (a) includes an officer of a corporation or a member of a partnership, who as such officer or member is under a duty to surrender the property or rights to property, or to discharge the obligation.
","history":"(Acts 1983, 4th Ex. Sess., No. 83-891, p. 128, §7.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39159,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38300,"codeId":19464,"versionId":15431,"parentId":19434,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-25","shortTitle":"Section 40-29-25","catchLine":"Production of Books.","title":"Section 40-29-25 Production of Books.","sectionRange":null,"content":"If a levy has been made on any property, or right to property, any person having custody or control of any books or records containing evidence or statements relating to the property or rights to property subject to levy, shall, upon demand of the Commissioner of Revenue or his delegate, exhibit such books or records to the Commissioner of Revenue or his delegate.
","history":"(Acts 1983, 4th Ex. Sess., No. 83-891, p. 128, §8.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39160,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38301,"codeId":19466,"versionId":15433,"parentId":19434,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-26","shortTitle":"Section 40-29-26","catchLine":"Sale of Seized Property.","title":"Section 40-29-26 Sale of Seized Property.","sectionRange":null,"content":"(a) Notice of seizure. As soon as practicable after seizure of property, notice in writing shall be given by the Commissioner of Revenue or his delegate to the owner of the property (or, in the case of personal property, the possessor thereof), or shall be left at his usual place of abode or business. If the owner cannot be readily located, or has no dwelling or place of business within the state, the notice may be mailed to his last known address. Such notice shall specify the sum demanded and shall contain, in the case of real property, a description with reasonable certainty of the property seized.
(b) Notice of sale. The commissioner or his delegate shall as soon as practicable after the seizure of the property give notice to the owner, in the manner prescribed in subsection (a), and shall cause a notification to be published in some newspaper published or generally circulated within the county wherein such seizure is made, or if there be no newspaper published or generally circulated in such county, shall post such notice at the post office nearest the place where the seizure is made, and in not less than two other public places. Such notice shall specify the property to be sold, including both a legal description and a readily understandable layman’s description, and the time, place, manner, and conditions of the sale thereof.
(c) Sale of indivisible property. If any property liable to levy is not divisible, so as to enable the commissioner or his delegate by sale of a part thereof to raise the whole amount of the tax and expenses, the whole of such property shall be sold. Such indivisible property shall include only property in which the taxpayer has at least 50 percent interest.
(d) Time and place of sale. All sales shall be held between the hours of 9:00 A.M. and 5:00 P.M. In sale of personal property, the notice and advertisement of sale must be published at least 14 days prior to sale, but only one publication shall be necessary. In sales of real property, the publication in the newspaper must be once a week for three successive weeks prior to the sale.
(e) Manner and conditions of sale.
(1) MINIMUM PRICE. Before the sale the commissioner or his delegate may determine a minimum price for which the property shall be sold, and if such minimum price is determined, and if no person offers for such property at the sale the amount of the minimum price, the property shall be declared to be purchased at such price for the State of Alabama; otherwise the property shall be declared to be sold to the highest bidder.
(2) ADDITIONAL RULES APPLICABLE TO SALE. The commissioner or his delegate shall by regulations prescribe the manner and other conditions of the sale of property seized by levy. If one or more alternative methods or conditions are permitted by regulations, the commissioner or his delegate shall select the alternatives applicable to the sale. Such regulations shall provide:
a. That the sale shall not be conducted in any manner other than:
1. By public auction; or
2. By public sale under sealed bids.
b. In the case of the seizure of several items of property, whether such items shall be offered separately, in groups, or in the aggregate; and whether such property shall be offered both separately (or in groups) and in the aggregate, and sold under whichever method produces the highest aggregate amount.
c. Whether the announcement of the minimum price determined by the commissioner or his delegate may be delayed until the receipt of the highest bid.
d. Whether payment in full shall be required at the time of acceptance of a bid, or whether a part of such payment may be deferred for such period (not to exceed one month) as may be determined by the commissioner or his delegate to be appropriate.
e. The extent to which methods (including advertising) in addition to those prescribed in subsection (b) may be used in giving notice of the sale.
f. Under what circumstances the commissioner or his delegate may adjourn the sale from time to time (but such adjournments shall not be for a period to exceed in all one month).
(3) PAYMENT OF AMOUNT BID. If payment in full is required at the time of acceptance of a bid and is not then and there paid, the commissioner or his delegate shall forthwith proceed to again sell the property in the manner provided in this subsection. If the conditions of the sale permit part of the payment to be deferred, and if such part is not paid within the prescribed period, suit may be instituted against the purchaser for the purchase price or such part thereof as has not been paid, together with interest at the rate applicable to liabilities due the Department of Revenue from the date of the sale; or, in the discretion of the commissioner or his delegate, the sale may be declared to be null and void for failure to make full payment of the purchase price and the property may again be advertised and sold as provided in subsections (b) and (c) of this section. In the event of such readvertisement and sale any new purchaser shall receive such property or rights to property free and clear of any claim or right of the former defaulting purchaser, of any nature whatsoever, and the amount paid upon the bid price by such defaulting purchaser shall be forfeited.
","history":"(Acts 1983, 4th Ex. Sess., No. 83-891, p. 128, §9; Acts 1992, No. 92-186, p. 349, §76.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39161,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38302,"codeId":19469,"versionId":15436,"parentId":19434,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-27","shortTitle":"Section 40-29-27","catchLine":"Sale of Perishable Goods.","title":"Section 40-29-27 Sale of Perishable Goods.","sectionRange":null,"content":"If the commissioner or his delegate determines that any property seized is liable to perish or become greatly reduced in price or value by keeping, or that such property cannot be kept without great expense, he shall appraise the value of such property and:
(a) Return to owner. If the owner of the property can be readily found, the commissioner or his delegate shall give him notice of such determination of the appraised value of the property. The property shall be returned to the owner if, within such time as may be specified in the notice, the owner:
(1) Pays to the commissioner or his delegate an amount equal to the appraised value; or
(2) Gives bond in such form, with such sureties, and in such amount as the commissioner or his delegate shall prescribe, to pay the appraised amount at such time as the commissioner or his delegate determines to be appropriate in the circumstances.
(b) Immediate sale. If the owner does not pay such amount or furnish such bond in accordance with this section, the commissioner or his delegate may as soon as practicable make public sale of the property in accordance with such regulations or in such manner as may be prescribed by the commissioner or his delegate.
","history":"(Acts 1983, 4th Ex. Sess., No. 83-891, p. 128, §10.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39162,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38303,"codeId":19475,"versionId":15439,"parentId":19434,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-28","shortTitle":"Section 40-29-28","catchLine":"Redemption of Property.","title":"Section 40-29-28 Redemption of Property.","sectionRange":null,"content":"(a) Before sale. Any person whose property has been levied upon hereunder or subject to execution under Section 40-2-11 shall have the right to pay the amount due, together with the expenses of the proceeding, if any, to the commissioner or his delegate at any time prior to the sale thereof, and upon such payment the commissioner or his delegate shall restore such property to him, and all further proceedings in connection with the levy on such property shall cease from the time of such payment.
(b) Redemption of real estate after sale.
(1) PERIOD. The owners of any real property sold as provided in Section 40-29-26, their heirs, executors, or administrators, or any person having any interest therein, or a lien thereon, or any person in their behalf, shall be permitted to redeem the property sold, or any particular tract of such property, at any time within one year after the sale thereof. Real property purchased by the state at said sale may be redeemed from the state at any time within one year after the sale thereof.
(2) PRICE. Such property or tract of property shall be permitted to be redeemed upon payment to the purchaser, or in case he cannot be found in the county in which the property to be redeemed is situated, then to the commissioner or his delegate, for the use of the purchaser, his heirs, or assigns, the amount paid by such purchaser and interest thereon at the current rate of interest per annum as last published and charged on delinquent taxes by the Internal Revenue Service. Where the state was purchaser, the tax liability must be paid in full in addition to the costs, penalties and interest in order to redeem.
(c) Record. When any lands sold are redeemed as provided in this section, the commissioner or his delegate shall cause entry of the fact to be made upon the record mentioned in Section 40-29-31, and such entry shall be evidence of such redemption.
(d) There may be no redemption of personal property.
","history":"(Acts 1983, 4th Ex. Sess., No. 83-891, p. 128, §11.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39163,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38304,"codeId":19479,"versionId":15442,"parentId":19434,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-29","shortTitle":"Section 40-29-29","catchLine":"Certificate of Sale; Deed of Real Property.","title":"Section 40-29-29 Certificate of Sale; Deed of Real Property.","sectionRange":null,"content":"(a) Certificate of sale. In the case of personal property sold as provided in Section 40-29-26, the commissioner or his delegate shall give to the purchaser a certificate of sale upon payment in full of the purchase price.
(b) Deed to real property. In the case of any real property sold as provided in Section 40-29-26 and not redeemed in the manner and within the time provided in Section 40-29-28, the commissioner or his delegate shall execute to the purchaser of such real property at such sale, upon his surrender of the certificate of sale, a deed of the real property so purchased by him, reciting the facts set forth in the certificate.
(c) Real property purchased by State of Alabama. If real property is declared purchased by the State of Alabama at a sale pursuant to Section 40-29-26, the commissioner or his delegate shall at the proper time execute a deed therefor, and without delay cause such deed to be duly recorded in the probate office of the county in which the property is located.
","history":"(Acts 1983, 4th Ex. Sess., No. 83-891, p. 128, §12.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39164,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38305,"codeId":19483,"versionId":15446,"parentId":19434,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-30","shortTitle":"Section 40-29-30","catchLine":"Legal Effect of Certificate of Sale of Personal Property and Deed of Real Property.","title":"Section 40-29-30 Legal Effect of Certificate of Sale of Personal Property and Deed of Real Property.","sectionRange":null,"content":"(a) Certificate of sale of property other than real property. In all cases of a sale of property (other than real property) pursuant to Section 40-29-26, the certificate of such sale:
(1) AS EVIDENCE. Shall be prima facie evidence of the right of the officer to make such sale, and conclusive evidence of the regularity of his proceedings in making the sale; and
(2) AS CONVEYANCES. Shall transfer to the purchaser all right, title, and interest of the party delinquent in and to the property sold; and
(3) AS AUTHORITY FOR TRANSFER OF CORPORATE STOCK. If such property consists of stocks, shall be notice when received, to any corporation, company, or association of such transfer, and shall be authority to such corporation, company, or association to record the transfer on its books and records in the same manner as if the stocks were transferred or assigned by the party holding the same, in lieu of any original or prior certificate, which shall be void, whether canceled or not; and
(4) AS RECEIPTS. If the subject of sale is securities or other evidences of debt, shall be a good and valid receipt to the person holding the same, as against any person holding or claiming to hold possession of such securities or other evidences of debt; and
(5) AS AUTHORITY FOR TRANSFER OF TITLE TO MOTOR VEHICLE. If such property consists of a motor vehicle, shall be notice, when received, to any public official charged with the registration of title to motor vehicles, of such transfer and shall be authority to such official to record the transfer on his books and records in the same manner as if the certificate of title to such motor vehicle were transferred or assigned by the party holding the same, in lieu of any original or prior certificate, which shall be void, whether canceled or not.
(b) Deed of real property. In the case of the sale of real property pursuant to Section 40-29-26:
(1) DEED AS EVIDENCE. The deed of sale given pursuant to Section 40-29-29 shall be prima facie evidence of the facts therein stated; and
(2) DEED AS CONVEYANCE OF TITLE. If the proceedings of the commissioner or his delegate as set forth have been substantially in accordance with the provisions of law, such deed shall be considered and operate as a conveyance of all the right, title, and interest the party delinquent had in and to the real property thus sold at the time the lien of the State of Alabama attached thereto.
(c) Effect of junior encumbrances. A certificate of sale of personal property given or a deed to real property executed pursuant to Section 40-29-29 shall discharge such property from all liens, encumbrances, and titles over which the lien of the State of Alabama with respect to which the levy was made had priority.
(d) Effect of senior encumbrances. A certificate of sale of personal property given or a deed to real property does not discharge such property from liens, encumbrances, and titles senior to the lien of the State of Alabama.
","history":"(Acts 1983, 4th Ex. Sess., No. 83-891, p. 128, §13.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39165,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38306,"codeId":19486,"versionId":15448,"parentId":19434,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-31","shortTitle":"Section 40-29-31","catchLine":"Records of Sales to Be Kept.","title":"Section 40-29-31 Records of Sales to Be Kept.","sectionRange":null,"content":"The commissioner or his delegate shall keep a record of all sales of real property sold under Section 40-29-26 and of redemptions of such property. The record shall set forth the tax for which the sale was made, the dates of seizure and sale, the amount of the expenses, the name of purchaser and the date of the deed. A deed to the State of Alabama by virtue of its purchase at the sale shall be promptly recorded in the probate office of the county or counties where the property is located.
","history":"(Acts 1983, 4th Ex. Sess., No. 83-891, p. 128, §14.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39166,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38307,"codeId":19491,"versionId":15452,"parentId":19434,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-32","shortTitle":"Section 40-29-32","catchLine":"Expense of Levy and Sale.","title":"Section 40-29-32 Expense of Levy and Sale.","sectionRange":null,"content":"The commissioner or his delegate shall determine the expenses to be allowed in all cases of levy and sale, which expenses shall be actual expenses directly related to the sale. The fee for a professional auctioneer that may be employed at the discretion of the commissioner or his delegate shall be considered an expense of the levy and sale.
","history":"(Acts 1983, 4th Ex. Sess., No. 83-891, p. 128, §15.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39167,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38308,"codeId":19495,"versionId":15455,"parentId":19434,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-33","shortTitle":"Section 40-29-33","catchLine":"Application of Proceeds of Levy.","title":"Section 40-29-33 Application of Proceeds of Levy.","sectionRange":null,"content":"(a) Collection of liability. Any money realized by proceedings under this article (whether by seizure, by surrender under Section 40-29-24, except pursuant to subsection (b)(2) thereof, or by sale of seized property) or by sale of property redeemed by the State of Alabama (if the interest of the State of Alabama in such property was a lien arising under the provisions of this title) shall be applied as follows:
(1) EXPENSE OF LEVY AND SALE. First, against the expenses of the proceedings;
(2) SPECIFIC TAX LIABILITY ON SEIZED PROPERTY. If the property seized and sold is subject to a tax imposed under this title which has not been paid, the amount remaining after applying subdivision (1) shall then be applied against such tax liability, including any penalty and interest, (and, if such tax was not previously assessed, it shall then be assessed);
(3) LIABILITY OF DELINQUENT TAXPAYER. The amount, if any, remaining after applying subdivisions (1) and (2) shall then be applied against the liability in respect of which the levy was made or the sale was conducted.
(b) Surplus proceeds. Any surplus proceeds remaining after the application of subsection (a) shall be refunded by the commissioner or his delegate to the person or persons legally entitled thereto.
","history":"(Acts 1983, 4th Ex. Sess., No. 83-891, p. 128, §16.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39168,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38309,"codeId":19499,"versionId":15458,"parentId":19434,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-34","shortTitle":"Section 40-29-34","catchLine":"Authority to Release Levy and Return Property.","title":"Section 40-29-34 Authority to Release Levy and Return Property.","sectionRange":null,"content":"(a) Release of levy. It shall be lawful for the commissioner or his delegate to release the levy, and any liens, upon all or part of the property or rights to property levied upon, where the commissioner or his delegate, within their discretion, determines that such action will facilitate the collection of the liability or for other good reason that the levy should be released, but such release shall not operate to prevent any subsequent levy.
(b) Return of property. If the commissioner determines that property has been wrongfully levied upon, it shall be lawful for the commissioner to return:
(1) The specific property levied upon;
(2) An amount of money equal to the amount of money levied upon; or
(3) An amount of money equal to the fair market value of the property levied upon and the reasonable cost of a judicial determination of the existence of a wrongful levy.
(c) Interest. Interest shall be allowed and paid at an annual rate established by law:
(1) In a case described in subsection (b)(2), from the date the commissioner receives the money to a date (to be determined by the commissioner) preceding the date of return by not more than 30 days; or
(2) In a case described in subsection (b)(3), from the date of the sale of the property to a date (to be determined by the commissioner) preceding the date of return by not more than 30 days.
","history":"(Acts 1983, 4th Ex. Sess., No. 83-891, p. 128, §17.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39169,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38310,"codeId":19510,"versionId":null,"parentId":19424,"effectiveDate":null,"supersessionDate":null,"type":"Article","displayId":"3","shortTitle":"Article 3","catchLine":"Limitations on Assessment and Collection.","title":"Article 3 Limitations on Assessment and Collection.","sectionRange":"§40-29-51 to §40-29-52","content":null,"history":null,"numChildren":2,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":39170,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38311,"codeId":19511,"versionId":15466,"parentId":19510,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-51","shortTitle":"Section 40-29-51","catchLine":"Collection After Assessment.","title":"Section 40-29-51 Collection After Assessment.","sectionRange":null,"content":"(a) Length of period. Where the assessment of any tax imposed by this title has been begun or made within the period of limitation properly applicable thereto, such tax may be collected by levy or by a proceeding in court, but only if the levy is made or the proceeding begun:
The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon. The period provided by this subsection during which a tax may be collected by levy shall not be extended or curtailed by reason of a judgment against the taxpayer.
(b) Date when levy is considered made. The date on which a levy on property or rights to property is made shall be the date on which the notice of seizure provided in Section 40-29-26 is given.
","history":"(Acts 1983, 4th Ex. Sess., No. 83-891, p. 128, §19.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39171,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38312,"codeId":19515,"versionId":15469,"parentId":19510,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-52","shortTitle":"Section 40-29-52","catchLine":"Suspension of Running of Period of Limitation.","title":"Section 40-29-52 Suspension of Running of Period of Limitation.","sectionRange":null,"content":"(a) General rule. The running of the period of limitations provided in this title for collecting any tax shall be suspended for the period during which the commissioner is prohibited from collecting by levy or a proceeding in court and for 60 days thereafter.
(b) Assets of taxpayer in control or custody of court. The period of limitations on collection prescribed in this title shall be suspended for the period the assets of the taxpayer are in the control or custody of the court in any proceeding before any court of the State of Alabama, and for six months thereafter.
(c) Taxpayer outside State of Alabama. The running of the period of limitations on collection prescribed in this title shall be suspended for the period during which the taxpayer is outside the State of Alabama if such period or absence is for a continuous period of at least six months. If the preceding sentence applies and at the time of the taxpayer’s return to the State of Alabama the period of limitations on collection after assessment prescribed in Section 40-29-51 would expire before the expiration of six months from the date of his return, such period shall not expire before the expiration of such six months.
(d) Case under Title 11 of the United States Code (Bankruptcy). The running of the period of limitations provided in Section 40-29-51 for collection shall, in a case under Title 11 of the United States Code (Bankruptcy), be suspended for the period during which the commissioner is prohibited by reason of such case from collecting said tax and for six months thereafter.
","history":"(Acts 1983, 4th Ex. Sess., No. 83-891, p. 128, §20; Acts 1992, No. 92-186, p. 349, §77.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39172,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38313,"codeId":19522,"versionId":null,"parentId":19424,"effectiveDate":null,"supersessionDate":null,"type":"Article","displayId":"4","shortTitle":"Article 4","catchLine":"Additions to Tax and Penalties.","title":"Article 4 Additions to Tax and Penalties.","sectionRange":"§40-29-70 to §40-29-75","content":null,"history":null,"numChildren":6,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":39173,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38314,"codeId":19524,"versionId":41153,"parentId":19522,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-70","shortTitle":"Section 40-29-70","catchLine":"Non-payable Checks, Money Orders, or Electronic Funds.","title":"Section 40-29-70 Non-payable Checks, Money Orders, or Electronic Funds.","sectionRange":null,"content":"If any check, money order, or electronic funds in payment of any amount receivable for payment of taxes under any provision of law is not duly paid, in addition to any other penalties provided by law, there shall be paid as a penalty by the person who tendered such check, money order, or electronic funds, upon notice and demand by the commissioner, or his or her delegate, or other taxing authority, in the same manner as tax, an amount equal to 10 percent of the amount of such check, money order, or electronic funds, except that if the amount of such check, money order, or electronic funds is less than five hundred dollars ($500), the penalty under this section shall be ten dollars ($10) or the amount of such check, money order, or electronic funds, whichever is the lesser. This section shall not apply if the person tendered such check, money order, or electronic funds in good faith and with reasonable cause to believe that it would be duly paid, and settlement is made by the taxpayer within 10 days after notification of receipt of a bad check, money order, or non-payable electronic funds by the department or other taxing authority.
","history":"(Acts 1983, 4th Ex. Sess., No. 83-891, p. 128, §21; Act 2017-227, §3.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39174,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38315,"codeId":19529,"versionId":15476,"parentId":19522,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-71","shortTitle":"Section 40-29-71","catchLine":"Automatic Refund.","title":"Section 40-29-71 Automatic Refund.","sectionRange":null,"content":"Where the Department of Revenue determines that a taxpayer is entitled to a refund, the Department of Revenue shall automatically refund to that taxpayer the amount of any excess tax so paid to the State of Alabama; provided, however, that the statute of limitations provisions of the applicable tax law shall apply.
","history":"(Acts 1983, 4th Ex. Sess., No. 83-891, p. 128, §22.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39175,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38316,"codeId":19530,"versionId":15477,"parentId":19522,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-72","shortTitle":"Section 40-29-72","catchLine":"Rules for Application of Assessable Penalties; “Person” Defined.","title":"Section 40-29-72 Rules for Application of Assessable Penalties; “Person” Defined.","sectionRange":null,"content":"(a) Penalty assessed as tax. The penalties and liabilities provided by this article shall be paid upon notice and demand by the commissioner or his delegate, and shall be assessed and collected in the same manner as taxes. Except as otherwise provided, any reference in this title to “tax” imposed by this title shall be deemed also to refer to the penalties and liabilities provided by this article.
(b) “Person” defined. The term “person,” as used in this article, includes an officer of a corporation, or a member of a partnership, who as such officer, or member is under a duty to perform the act in respect of which the violation occurs.
","history":"(Acts 1983, 4th Ex. Sess., No. 83-891, p. 128, §23.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39176,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38317,"codeId":19534,"versionId":15479,"parentId":19522,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-73","shortTitle":"Section 40-29-73","catchLine":"Failure to Collect and Pay Over Tax, or Attempt to Evade or Defeat Tax.","title":"Section 40-29-73 Failure to Collect and Pay Over Tax, or Attempt to Evade or Defeat Tax.","sectionRange":null,"content":"(a) General rule. Any person required to collect, truthfully account for, and/or pay over any tax imposed by Sections 40-17-2, 40-17-220, 40-18-71, 40-21-82, 40-23-2, 40-23-61, 40-26-1 and any other local sales, use, and gross receipts taxes collected by the state Department of Revenue who willfully fails to collect such tax, or truthfully account for, and/or pay over such tax, or willfully attempts in any manner to evade or defeat any such tax or the payment thereof, shall, in addition to other penalties provided by law, be liable for a penalty up to the total amount of the tax evaded, or not collected, or not accounted for and paid over.
(b) Extension of period of collection where bond is filed.
(1) IN GENERAL. If, within 30 days after the day on which notice and demand of any penalty under subsection (a) is made against any person, such person:
a. Pays an amount which is not less than the minimum amount required to commence a proceeding in court with respect to his liability for such penalty;
b. Files a claim for refund of the amount so paid; and
c. Furnishes a bond which meets the requirements of subdivision (3); no levy or proceeding in court for the collection of the remainder of such penalty shall be made, begun, or prosecuted until a final resolution of a proceeding begun as provided in subdivision (2).
(2) SUIT MUST BE BROUGHT TO DETERMINE LIABILITY FOR PENALTY. If, within 30 days after the day on which his claim for refund with respect to any penalty under subsection (a) is denied, the person described in subdivision (1) fails to begin a proceeding in the appropriate court for the determination of his liability for such penalty, subdivision (1) shall cease to apply with respect to such penalty, effective on the day following the close of the thirty-day period referred to in this subdivision.
(3) BOND. The bond referred to in subdivision (1) shall be in such form and with such sureties as the commissioner may by regulations prescribe and shall be in an amount equal to one and one-half times the amount of excess of the penalty assessed over the payment described in subdivision (1).
(4) SUSPENSION OF RUNNING OF PERIOD OF LIMITATIONS ON COLLECTION. The running of the period of limitations provided in Section 40-29-50 on the collection by levy or by a proceeding in court in respect of any penalty described in subdivision (1) shall be suspended for the period during which the commissioner is prohibited from collecting by levy or a proceeding in court.
(5) JEOPARDY COLLECTION. If the commissioner makes a finding that the collection of the penalty is in jeopardy, nothing in this subsection shall prevent the immediate collection of such penalty.
","history":"(Acts 1983, 4th Ex. Sess., No. 83-891, p. 128, §24.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39177,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38318,"codeId":19541,"versionId":15487,"parentId":19522,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-74","shortTitle":"Section 40-29-74","catchLine":"Fraudulent Statement or Failure to Furnish Statement to Employee.","title":"Section 40-29-74 Fraudulent Statement or Failure to Furnish Statement to Employee.","sectionRange":null,"content":"In addition to the criminal penalty provided by Section 40-29-114, any person required under this title to furnish a statement to an employee who willfully furnishes a false or fraudulent statement, or who willfully fails to furnish a statement in the manner, at the time, and showing the information required shall for each such failure be subject to a penalty under this article of $50.
","history":"(Acts 1983, 4th Ex. Sess., No. 83-891, p. 128, §25.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39178,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38319,"codeId":19548,"versionId":15491,"parentId":19522,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-75","shortTitle":"Section 40-29-75","catchLine":"False Information with Respect to Withholding.","title":"Section 40-29-75 False Information with Respect to Withholding.","sectionRange":null,"content":"(a) Civil penalty. In addition to any criminal penalty provided by law, if:
(1) Any individual makes a statement under Section 40-18-73 which results in a decrease in the amounts deducted and withheld under Section 40-18-71; and
(2) As of the time such statement was made, there was no reasonable basis for such statement, such individual shall pay a penalty of $500 for such statement.
(b) Exception. The commissioner may waive (in whole or in part) the penalty imposed under subsection (a) if the taxes imposed with respect to the individual under Chapter 18 of this title for the taxable year are equal to or less than the sum of:
(1) The credits against such taxes allowed by Sections 40-18-21, 40-18-120 and 40-18-121; and
(2) The payments of estimated tax which are considered payments on account of such taxes.
","history":"(Acts 1983, 4th Ex. Sess., No. 83-891, p. 128, §26.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39179,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38320,"codeId":19555,"versionId":null,"parentId":19424,"effectiveDate":null,"supersessionDate":null,"type":"Article","displayId":"5","shortTitle":"Article 5","catchLine":"Jeopardy.","title":"Article 5 Jeopardy.","sectionRange":"§40-29-90 to §40-29-91","content":null,"history":null,"numChildren":2,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":39180,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38321,"codeId":19557,"versionId":38597,"parentId":19555,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-90","shortTitle":"Section 40-29-90","catchLine":"Jeopardy Assessment - for Income Tax.","title":"Section 40-29-90 Jeopardy Assessment - for Income Tax.","sectionRange":null,"content":"(a) Termination of taxable period. If the commissioner or his delegate finds that a taxpayer designs quickly to depart from the State of Alabama or to remove his property therein, or to do any other act tending to prejudice or to render wholly or partly ineffectual proceedings to collect the income tax for the current or the preceding taxable year unless such proceedings be brought without delay, the commissioner or his delegate shall declare the taxable period for such taxpayer immediately terminated, and shall cause notice of such finding and declaration to be given the taxpayer, together with a demand for immediate payment of the tax for the taxable period so declared terminated and of the tax for the preceding taxable year or so much of such tax as is unpaid, whether or not the time otherwise allowed by law for filing return and paying the tax has expired; and such taxes shall thereupon become immediately due and payable. In any proceeding in court brought to enforce payment of taxes made due and payable by virtue of the provisions of this section, the finding of the commissioner or his delegate, made as herein provided, whether made after notice to the taxpayer or not, shall be for all purposes presumptive evidence of jeopardy.
(b) Reopening of taxable period. Notwithstanding the termination of the taxable period of the taxpayer by the commissioner or his delegate, as provided in subsection (a), the commissioner or his delegate may reopen such taxable period each time the taxpayer is found by the commissioner or his delegate to have received income, within the current taxable year, since a termination of the period under subsection (a). A taxable period so terminated by the commissioner or his delegate may be reopened by the taxpayer if he files with the commissioner or his delegate a true and accurate return of the items of gross income and of the deductions and credits allowed under this title for such taxable period, together with such other information required under this title. If the taxpayer is a nonresident, the taxable period so terminated may be reopened by him if he files, or causes to be filed, with the commissioner or his delegate a true and accurate return of his total income derived from all sources within the State of Alabama, in the manner prescribed in this title.
(c) Abatement if jeopardy does not exist. The commissioner or his delegate may abate the jeopardy assessment if he finds that jeopardy does not exist. The period of limitation on the making of assessments and levy or a proceeding in court for collection, in respect of any deficiency, shall be determined as if the jeopardy assessment so abated had not been made, except that the running of such period shall in any event be suspended for the period from the date of such jeopardy assessment until the expiration of the tenth day after the day on which such jeopardy assessment is abated.
(d) Approved bond. When a jeopardy assessment has been entered as provided in subsection (a), the collection of all or any part of such assessment may be stayed by filing with the commissioner or his delegate an approved bond conditioned upon the payment of the assessment together with applicable interest and costs of collection. The commissioner or his delegate shall have sole discretion to approve or disapprove the bond, but such approval shall not be unreasonably withheld.
(e) Appeal. A final jeopardy assessment entered hereunder may be appealed to either the Alabama Tax Tribunal of the department or the appropriate circuit court of Alabama in the same manner as provided by the procedures contained in Chapter 2B of this title for the appeal of final assessments. If the appeal is taken to the Alabama Tax Tribunal, the taxpayer must file the bond required by subsection (d).
","history":"(Acts 1983, 4th Ex. Sess., No. 83-891, p. 128, §27; Acts 1992, No. 92-186, p. 349, §78; Act 2015-316, §1; Act 2015-368, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39181,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38322,"codeId":19562,"versionId":38596,"parentId":19555,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-91","shortTitle":"Section 40-29-91","catchLine":"Jeopardy Assessment - Other Taxes.","title":"Section 40-29-91 Jeopardy Assessment - Other Taxes.","sectionRange":null,"content":"(a) If the commissioner or his delegate finds that a taxpayer designs quickly to depart from the State of Alabama or to remove his property therein, or to do any other act tending to prejudice or to render wholly or partly ineffectual proceedings to collect any tax imposed by this title other than income tax, the commissioner or his delegate may issue notice of such finding to the taxpayer by personal service or mailing to his/her last known address, together with a demand for immediate payment of the tax declared to be in jeopardy, including penalties and additions thereto and such tax, penalty, interest, and additions thereto shall be immediately due and payable. A final assessment of such tax may be entered immediately and if the assessment is not paid upon such demand of the commissioner or his delegate, the commissioner or his delegate may forthwith issue a warrant for levy and distraint of any personal property of the taxpayer which shall be collected in the same manner and with like effect as provided under Article 2 of this chapter.
(b) In the case of a tax for a current period, the commissioner or his delegate may declare the taxable period of the taxpayer immediately terminated and may at his discretion estimate the tax liability based upon the best information obtainable. Notice of such finding and declaration shall be issued to the taxpayer in the same manner as in subsection (a).
(c) When a jeopardy assessment has been made as provided in subsection (a), the collection of all or any part of such assessment may be stayed by filing with the commissioner or his delegate an approved bond conditioned upon the payment of the assessment together with applicable interest and costs of collection. The commissioner or his delegate shall have sole discretion to approve or disapprove the bond, but such approval shall not be unreasonably withheld.
(d) In any proceeding in court to contest the jeopardy assessment or to enforce payment of the taxes made due and payable by virtue of the provisions of this section, the finding of the commissioner or his delegate, made as herein provided, shall be for all purposes presumptive evidence of jeopardy.
(e) A final jeopardy assessment entered hereunder may be appealed to either the Alabama Tax Tribunal of the department or the appropriate circuit court of Alabama in the same manner as provided in Chapter 2B of this title for the appeal of final assessments. If the appeal is to the Alabama Tax Tribunal, the taxpayer must file the bond required by subsection (c). Provided further, an appeal from a final jeopardy assessment of the drugs and controlled substances excise tax levied by Chapter 17A of this title may only be taken to the appropriate circuit court.
","history":"(Acts 1983, 4th Ex. Sess., No. 83-891, p. 128, §28; Acts 1992, No. 92-186, p. 349, §79; Act 2015-316, §1; Act 2015-368, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39182,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38323,"codeId":19568,"versionId":null,"parentId":19424,"effectiveDate":null,"supersessionDate":null,"type":"Article","displayId":"6","shortTitle":"Article 6","catchLine":"Crimes.","title":"Article 6 Crimes.","sectionRange":"§40-29-110 to §40-29-121","content":null,"history":null,"numChildren":12,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":39183,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38324,"codeId":19569,"versionId":15504,"parentId":19568,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-110","shortTitle":"Section 40-29-110","catchLine":"Attempt to Evade or Defeat Tax.","title":"Section 40-29-110 Attempt to Evade or Defeat Tax.","sectionRange":null,"content":"Any person who willfully attempts in any manner to evade or defeat any tax imposed by this title or the payment thereof shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, shall be fined not more than $100,000 ($500,000 in the case of a corporation), or imprisoned not more than five years, or both.
","history":"(Acts 1983, 4th Ex. Sess., No. 83-891, p. 128, §29.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39184,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38325,"codeId":19573,"versionId":15509,"parentId":19568,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-111","shortTitle":"Section 40-29-111","catchLine":"Willful Failure to Collect or Pay Over Tax.","title":"Section 40-29-111 Willful Failure to Collect or Pay Over Tax.","sectionRange":null,"content":"Any person required under this title to collect, account for, and pay over any tax imposed by this title who willfully fails to collect or truthfully account for and pay over such tax shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, shall be fined not more than $10,000, or imprisoned not more than five years, or both.
","history":"(Acts 1983, 4th Ex. Sess., No. 83-891, p. 128, §30.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39185,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38326,"codeId":19578,"versionId":15512,"parentId":19568,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-112","shortTitle":"Section 40-29-112","catchLine":"Willful Failure to File Return, Supply Information, or Pay Tax.","title":"Section 40-29-112 Willful Failure to File Return, Supply Information, or Pay Tax.","sectionRange":null,"content":"Any person required under this title to pay any estimated tax or tax, or required by this title or by regulations made under authority thereof to make a return (other than a return required under Section 40-18-82), keep any records, or supply any information, who willfully fails to pay such estimated tax or tax, make such return, keep such records, or supply such information, at the time or times required by law or regulations, shall, in addition to other penalties provided by law, be guilty of a misdemeanor and, upon conviction thereof, shall be fined not more than $25,000 ($100,000 in the case of a corporation), or imprisoned not more than one year, or both, together with the costs of prosecution. In the case of any person with respect to whom there is a failure to pay any estimated tax, this section shall not apply to such person with respect to such failure if there is no addition to tax under subsections (a) and (b) of Section 40-18-80 with respect to such failure.
","history":"(Acts 1983, 4th Ex. Sess., No. 83-891, p. 128, §31.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39186,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38327,"codeId":19584,"versionId":15526,"parentId":19568,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-113","shortTitle":"Section 40-29-113","catchLine":"Fraudulent Statement or Failure to Make Statement to Employees.","title":"Section 40-29-113 Fraudulent Statement or Failure to Make Statement to Employees.","sectionRange":null,"content":"In lieu of any other penalty provided by law (except the penalty provided by Section 40-29-75) any person required under the provisions of Section 40-18-75 to furnish a statement who willfully furnishes a false or fraudulent statement or who willfully fails to furnish a statement in the manner, at the time, and showing the information required under Section 40-18-75, or regulations prescribed thereunder, shall, for each such offense, upon conviction thereof, be fined not more than $1,000, or imprisoned not more than one year, or both.
","history":"(Acts 1983, 4th Ex. Sess., No. 83-891, p. 128, §32.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39187,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38328,"codeId":19600,"versionId":15536,"parentId":19568,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-114","shortTitle":"Section 40-29-114","catchLine":"Fraudulent Withholding Exemption Certificate or Failure to Supply Information.","title":"Section 40-29-114 Fraudulent Withholding Exemption Certificate or Failure to Supply Information.","sectionRange":null,"content":"Any individual required to supply information to his employer under Section 40-18-73 who willfully supplies false or fraudulent information, or who willfully fails to supply information thereunder which would require an increase in the tax to be withheld under Section 40-18-73 shall, in lieu of any other penalty provided by law, upon conviction thereof, be fined not more than $500, or imprisoned not more than one year, or both.
","history":"(Acts 1983, 4th Ex. Sess., No. 83-891, p. 128, §33.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39188,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38329,"codeId":19610,"versionId":15540,"parentId":19568,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-115","shortTitle":"Section 40-29-115","catchLine":"Fraud and False Statements.","title":"Section 40-29-115 Fraud and False Statements.","sectionRange":null,"content":"(a) Any person who:
(1) DECLARATION UNDER PENALTIES OF PERJURY. Willfully makes and subscribes any return, statement, or other document, which contains or is verified by a written declaration that it is made under the penalties of perjury, and which he does not believe to be true and correct as to every material matter; or
(2) AID or ASSISTANCE. Willfully aids or assists in, or procures, counsels, or advises the preparation or presentation under, or in connection with any matter arising under, the state revenue laws, of a return, affidavit, claim, or other document, which is fraudulent or is false as to any material matter, whether or not such falsity or fraud is with the knowledge or consent of the person authorized or required to present such return, affidavit, claim, or document; or
(3) FRAUDULENT BONDS, PERMITS, AND ENTRIES. Simulates or falsely or fraudulently executes or signs any bond, permit, entry, or other document required by the provisions of this title, or by any regulation made in pursuance thereof, or procures the same to be falsely or fraudulently executed, or advises, aids in, or connives at such execution thereof; or
(4) REMOVAL OR CONCEALMENT WITH INTENT TO DEFRAUD. Removes, deposits, or conceals, or is concerned in removing, depositing, or concealing, any goods or commodities for or in respect whereof any tax is or shall be imposed, or any property upon which levy is authorized by Section 40-29-23, with intent to evade or defeat the assessment or collection of any tax imposed by this title; shall be guilty of a felony and, upon conviction thereof, shall be fined not more than $100,000 ($500,000 in the case of a corporation), or imprisoned not more than three years, or both.
(b) It shall be unlawful for anyone to falsify or misrepresent the correct residence address of the owner or the correct address of the business location, of an automotive vehicle, truck trailer, trailer, semitrailer, or travel trailer with the intent to avoid municipal or county ad valorem, sales or use tax in any county or municipality in which the owner resides, or in which the business owner of such vehicle or trailer is subject to tax. Violation of this subsection shall be a Class C misdemeanor.
","history":"(Acts 1983, 4th Ex. Sess., No. 83-891, p. 128, §34; Acts 1989, No. 89-691, p. 1358, §7.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39189,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38330,"codeId":19614,"versionId":15545,"parentId":19568,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-116","shortTitle":"Section 40-29-116","catchLine":"Fraudulent Returns, Statements, or Other Documents.","title":"Section 40-29-116 Fraudulent Returns, Statements, or Other Documents.","sectionRange":null,"content":"Any person who willfully delivers or discloses to the commissioner or his delegate any list, return, account, statement, or other document, known by him to be fraudulent or to be false as to any material matter, shall be fined not more than $10,000 ($50,000 in the case of a corporation), or imprisoned not more than one year, or both. Any person required pursuant to this title to furnish any information to the commissioner or his delegate who willfully furnishes to the commissioner or his delegate any information known by him to the fraudulent or to be false as to any material matter shall be fined not more than $10,000 ($50,000 in the case of a corporation), or imprisoned not more than one year, or both.
","history":"(Acts 1983, 4th Ex. Sess., No. 83-891, p. 128, §35.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39190,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38331,"codeId":19617,"versionId":15548,"parentId":19568,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-117","shortTitle":"Section 40-29-117","catchLine":"Failure to Obey Subpoena.","title":"Section 40-29-117 Failure to Obey Subpoena.","sectionRange":null,"content":"Any person who, being duly subpoenaed to appear to testify, or to appear and produce books, accounts, records, memoranda, or other papers, as required under subdivisions (7) and (8) of Section 40-2-11, or any other section in this title requiring the production of information, neglects or fails to appear without cause or to produce such books, accounts, records, memoranda, or other papers without cause, shall, upon conviction thereof, be fined not more than $1,000, or imprisoned not more than one year, or both.
","history":"(Acts 1983, 4th Ex. Sess., No. 83-891, p. 128, §36.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39191,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38332,"codeId":19621,"versionId":15551,"parentId":19568,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-118","shortTitle":"Section 40-29-118","catchLine":"Attempts to Interfere with Administration of State Revenue Laws; Taxpayer Protection from Harassment.","title":"Section 40-29-118 Attempts to Interfere with Administration of State Revenue Laws; Taxpayer Protection from Harassment.","sectionRange":null,"content":"(a) Corrupt or forcible interference. Whoever corruptly or by force or threats of force (including any threatening letter or communication) endeavors to intimidate or impede any officer or employee of the State of Alabama acting in an official capacity under this title, or in any other way corruptly or by force or threats of force (including any threatening letter or communication) obstructs or impedes, or endeavors to obstruct or impede, the due administration of this title, shall, upon conviction thereof, be fined not more than $5,000, or imprisoned not more than three years, or both, except that if the offense is committed only by threats of force, the person convicted thereof shall be fined not more than $3,000, or imprisoned not more than one year, or both. The term “threats of force,” as used in this subsection, means threats of bodily harm to the officer or employee of the State of Alabama or to a member of his family.
(b) Forcible rescue of seized property. Any person who forcibly rescues or causes to be rescued any property after it shall have been seized under this title, or shall attempt or endeavor so to do, shall, excepting in cases otherwise provided for, for every such offense, be fined not more than $500, or not more than double the value of the property so rescued, whichever is the greater, or be imprisoned not more than two years.
(c) Intimidation or harassment of taxpayer; “threats of force” defined. Any employee of the state Department of Revenue acting in an official capacity under the provisions of this title who by unlawful force or threats of force endeavors to intimidate or harass a taxpayer, upon determination by a special board to be appointed by the state Personnel Department that the charge is valid, shall be subject to immediate dismissal, and upon such dismissal may be subject to such penalties as provided under this section. The term “threats of force” as used in this subsection means threats of bodily harm to the taxpayer or to a member of his family.
","history":"(Acts 1983, 4th Ex. Sess., No. 83-891, p. 128, §37.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39192,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38333,"codeId":19629,"versionId":39226,"parentId":19568,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-119","shortTitle":"Section 40-29-119","catchLine":"Periods of Limitation on Criminal Prosecutions.","title":"Section 40-29-119 Periods of Limitation on Criminal Prosecutions.","sectionRange":null,"content":"(a) No person shall be prosecuted, tried, or punished for any of the various offenses arising under the revenue laws unless the indictment is found or the prosecution instituted within three years next after the commission of the offense, except that the period of limitation shall be six years:
(1) For offenses involving the defrauding or attempting to defraud the State of Alabama or any agency thereof, whether by conspiracy or not, and in any manner;
(2) For the offense of willfully attempting in any manner to evade or defeat any tax or the payment thereof;
(3) For the offense of willfully aiding or assisting in, or procuring, counseling, or advising, the preparation or presentation under, or in connection with any matter arising under, the statute revenue laws, of a false or fraudulent return, affidavit, claim or document (whether or not such falsity or fraud is with the knowledge or consent of the person authorized or required to present such return, affidavit, claim, or document);
(4) For the offense of willfully failing to pay any tax, or make any return at the time or times required by law or regulations;
(5) For offenses described in Sections 40-29-115 and 40-29-116 (relating to false statements and fraudulent documents);
(6) For the offense described in Section 40-29-118 (relating to intimidation of officers and employees of the State of Alabama); or
(7) For the offense described in Section 40-29-121 (relating to the possession or use of an automated sales suppression device or phantom-ware).
(b) The time during which the person committing any of the various offenses arising under the revenue laws is outside the State of Alabama or is a fugitive from justice within the meaning of the Code of Alabama, shall not be taken as any part of the time limited by law for the commencement of such proceedings.
","history":"(Acts 1983, 4th Ex. Sess., No. 83-891, p. 128, §38; Act 2015-502, 1st Sp. Sess., §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39193,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38334,"codeId":19632,"versionId":15559,"parentId":19568,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-120","shortTitle":"Section 40-29-120","catchLine":"Commissioner’s Report.","title":"Section 40-29-120 Commissioner’s Report.","sectionRange":null,"content":"The Commissioner of Revenue will file a report in one-year periods from January 1, 1984, for a period of five years that states the amount of additional tax money that was collected as the result of this chapter. This report shall be delivered to each legislator and each constitutional officer.
","history":"(Acts 1983, 4th Ex. Sess., No. 83-891, p. 128, §39.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39194,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38335,"codeId":47298,"versionId":39386,"parentId":19568,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-121","shortTitle":"Section 40-29-121","catchLine":"Automated Sales Suppression Devices or Phantom-Ware.","title":"Section 40-29-121 Automated Sales Suppression Devices or Phantom-Ware.","sectionRange":null,"content":"(a) For purposes of this section, the following terms have the following meanings:
(1) AUTOMATED SALES SUPPRESSION DEVICE. A software program carried on a memory stick or removable compact disc, accessed through an Internet link, or by any other means, that falsifies the electronic records of electronic cash registers and other point-of-sale systems, including, but not limited to, transaction data and transaction reports.
(2) ELECTRONIC CASH REGISTER. A device that keeps a register or supporting documents through the use of an electronic device or computer system designed to record transaction data for the purpose of computing, compiling, or processing retail sales and other transaction data.
(3) PHANTOM-WARE. Any hidden or concealed programming option embedded in the operating system of an electronic cash register or hardwired into the electronic cash register that can be used to create a second set of records or to eliminate or manipulate transaction records that may or may not be preserved in digital formats in order to represent the true or manipulated record of a transaction in the electronic cash register.
(4) TRANSACTION DATA. Data relating to a transaction which includes, but is not limited to, data identifying each item purchased by a customer, the price for each item, a taxability determination for each item, a segregated tax amount for each of the taxed items, the amount of cash or credit tendered, the net amount returned to the customer in change, the date and time of the purchase, the name, address, and identification number of the vendor, and the receipt or invoice number of the transaction.
(5) TRANSACTION REPORTS. Either of the following or any variation thereof:
a. A report that contains, but is not limited to, documentation of sales, taxes, or fees collected; media totals; and discount voids at an electronic cash register, and that is printed on a cash register tape at the end of a day or shift, or
b. A report that documents every action at an electronic cash register and that is stored electronically.
(b) It is unlawful to knowingly sell, purchase, install, transfer, use, or possess in this state any automated sales suppression device or phantom-ware.
(c) Any person convicted of a violation of this section is guilty of a Class C felony and upon conviction, shall also be fined not more than one hundred thousand dollars ($100,000), or in the case of a corporation, not more than five hundred thousand dollars ($500,000). In addition, the person shall be liable for all taxes, fees, penalties, and interest due the state and any locality as the result of the fraudulent use of an automated sales suppression device or phantom-ware and shall forfeit to the state, as an additional penalty, all profits associated with the sale or use of an automated sales suppression device or phantom-ware.
(d) An automated sales suppression device or phantom-ware and any device containing such device or software shall be contraband and shall be forfeited to the state.
","history":"(Act 2015-502, 1st Sp. Sess., §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39195,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38336,"codeId":48905,"versionId":null,"parentId":19424,"effectiveDate":null,"supersessionDate":null,"type":"Article","displayId":"7","shortTitle":"Article 7","catchLine":"Identity Theft Related Refund Fraud","title":"Article 7 Identity Theft Related Refund Fraud","sectionRange":"§40-29-130","content":null,"history":null,"numChildren":1,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":39196,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38337,"codeId":48906,"versionId":41151,"parentId":48905,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29-130","shortTitle":"Section 40-29-130","catchLine":"Reduction of Identity Theft Related Refund Fraud.","title":"Section 40-29-130 Reduction of Identity Theft Related Refund Fraud.","sectionRange":null,"content":"The Department of Revenue, with assistance and support from other state offices and agencies that participate in the income tax refund process, is authorized and instructed to pursue all reasonable options available to it in order to reduce identity theft related refund fraud. The department and other assisting state offices and agencies are authorized to incur all reasonable costs associated in combating refund fraud, to partner with other state, federal, and private sectors in various programs and projects designed to reduce or eliminate refund fraud, and to compensate or reimburse the partners in these programs for the reasonable costs incurred in carrying out these programs.
","history":"(Act 2017-227, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39197,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38338,"codeId":47344,"versionId":null,"parentId":40,"effectiveDate":null,"supersessionDate":null,"type":"Chapter","displayId":"29A","shortTitle":"Chapter 29A","catchLine":"Alabama Tax Delinquency Amnesty Act.","title":"Chapter 29A Alabama Tax Delinquency Amnesty Act.","sectionRange":"§40-29A-1 to §40-29A-4","content":null,"history":null,"numChildren":4,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":39198,"hierarchyLevel":1,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38339,"codeId":47345,"versionId":39424,"parentId":47344,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29A-1","shortTitle":"Section 40-29A-1","catchLine":"Short Title.","title":"Section 40-29A-1 Short Title.","sectionRange":null,"content":"This chapter shall be known as and may be cited as the “Alabama Tax Delinquency Amnesty Act of 2016”.
","history":"(Act 2015-555, 2nd Sp. Sess., §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39199,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38340,"codeId":47346,"versionId":39425,"parentId":47344,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29A-2","shortTitle":"Section 40-29A-2","catchLine":"Definitions.","title":"Section 40-29A-2 Definitions.","sectionRange":null,"content":"As used in this chapter, the following terms have the meaning ascribed to them in this section, except when the context clearly indicates otherwise:
(1) COMMISSIONER. The Commissioner of the Department of Revenue.
(2) CONTACT or CONTACTED. Previous contact of any kind by the department or an agent of the department within five years prior to the initial written request for amnesty. This includes returns filed for the tax types included in the application for tax periods beginning before the look-back period. Contact includes, but is not limited to, with regard to potential liability for the type of tax identified in the amnesty application: receipt of a nexus questionnaire, an audit or notice of audit, payment of tax, registration for tax, registration with the Secretary of State, request for extension of time to file, making a payment of estimated tax, filing a return, and non-compliance issued in response to an application for a certificate of good standing or a certificate of compliance by the taxpayer, or on behalf of the taxpayer.
(3) COURIER. A messenger other than the United States Postal Service that delivers parcels, packages, and the like, containing returns, reports, and other documents or payments.
(4) DEPARTMENT. The Department of Revenue.
(5) LOOK-BACK PERIOD. The last three full tax years or 36 months of tax returns which are delinquent.
(6) POSTMARK. An official mark made by the United States Postal Service on a piece of mail to cancel the stamp and to indicate the place and date of sending.
(7) TAX PERIOD. Any period for which a tax return is required by law to be filed with the department.
(8) TAXPAYER. Any individual or entity subject to any tax imposed by any law of the State of Alabama, payable to the State of Alabama, and collected by the department.
","history":"(Act 2015-555, 2nd Sp. Sess., §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39200,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38341,"codeId":47347,"versionId":39426,"parentId":47344,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29A-3","shortTitle":"Section 40-29A-3","catchLine":"Tax Amnesty Program.","title":"Section 40-29A-3 Tax Amnesty Program.","sectionRange":null,"content":"(a) The department shall develop and implement a tax amnesty program in accordance with the provisions of this chapter. The commissioner may provide by rule as necessary for the administration and implementation of the program. The commissioner shall publicize the program in order to maximize the public awareness of and participation in the program. The commissioner, for purpose of publicizing the program, may contract with any advertising agency within or outside this state and use public service announcements, pamphlets, mail notices, and print, television, and radio announcements. Such publications shall include increasing public awareness that the program will provide amnesty for sales and use tax due on internet, mail order, or other purchases made from out-of-state vendors for which Alabama sales or use tax was not charged at the time of purchase. In furthering the collections of amnesty, the commissioner may procure amnesty program administration services on a fee basis; however, the fee shall not exceed 10 percent of the total dollars collected.
(b) The amnesty program shall be effective for a period of at least two months duration in 2016, occurring prior to August 31, 2016. The program shall apply to all taxes administered by the department except for motor fuel taxes, penalties imposed by Section 40-29-73, and penalties for failure to submit information reports that are not based on an underpayment of tax.
(c) Notwithstanding any other provision of law to the contrary, and except as provided in subsection (b), the following taxes are eligible for amnesty:
(1) Taxes due prior to January 1, 2015.
(2) Taxes for taxable periods that began before January 1, 2015.
(d) Participation in the amnesty program shall be conditioned upon the agreement of the taxpayer that the right to protest or initiate an administrative or judicial proceeding is barred. The agreement shall only apply to the specific tax and the tax period for which amnesty is granted.
(e) Amnesty may be granted only for eligible taxes to eligible taxpayers who apply for amnesty during the amnesty period on forms prescribed by the commissioner and who pay all of the tax, all fees and costs, if applicable, and any interest due upon filing the amnesty application. A standard look-back period, as defined in this chapter, applies for all tax types eligible for amnesty. If the taxpayer has collected any tax without remitting such tax to the department, the look-back period shall be extended to include all periods, back to the point of collection. The commissioner shall reserve the right to require taxpayers to file tax returns with the amnesty application. Notwithstanding any other provision of law to the contrary, if the amnesty application is approved during the amnesty period the commissioner shall waive one-half of the interest and all of the penalties associated with the tax periods for which amnesty is applied. An amnesty payment or application submitted in a properly addressed envelope with sufficient postage delivered by the United States Postal Service is deemed paid or received on the date it is postmarked. An amnesty payment or application delivered by courier or taxpayer is deemed paid or received on the date it is delivered to the department’s headquarters or a regional office. No installment agreements will be entered into for tax periods that are approved for amnesty.
(f) Amnesty shall not be granted to taxpayers who have been contacted by the department, who are parties to any criminal investigation or criminal litigations in any court of the United States or the State of Alabama pending on September 22, 2015, for nonpayment, delinquency, or fraud in relation to any state tax imposed by a law of the State of Alabama and administered by the department. Further, a taxpayer who delivers or discloses any false or fraudulent application, document, return, or other statement to the department in connection with an amnesty application shall be ineligible for amnesty and shall be subject of the fraud penalty under Section 40-2A-11(d), or a penalty of ten thousand dollars ($10,000), whichever is greater.
(g) Amnesty applications shall include a written waiver of all rights, restrictions, and delays for assessing, collecting, or protesting taxes and interest due as set forth in Chapter 2A and Chapter 2B. The filing of such applications shall make the tax, interest, and penalty immediately due and payable; subject to the notice and due process procedures provided for by law; ineligible for refund, credit, or claim against the state; and ineligible for redetermination; however, a taxpayer shall be eligible for a refund or credit if the overpayment arises after the amnesty application is submitted and is attributable to a properly claimed Alabama net operating loss or attributable to an adjustment made by the Internal Revenue Service to the taxpayer’s federal income tax, and the taxpayer provides notice of the adjustment to the commissioner within 60 days of receipt of the adjustment from the Internal Revenue Service. A taxpayer who files an application for amnesty retains all administrative and judicial rights of appeal with respect to any additional tax assessed by the department.
(h) No interest shall be paid on refunds for those amounts previously collected by the department from the taxpayer for a tax period for which amnesty is granted.
(i) If, following the termination of the tax amnesty period, the commissioner issues a deficiency assessment for a period for which amnesty was taken, the commissioner shall have the authority to impose penalties and institute civil proceedings or criminal proceedings as authorized by law only with respect to the difference between the amount shown on the amnesty application and the correct amount of tax due. The commissioner may by rule impose after the expiration of the tax amnesty period a cost of collection penalty not to exceed twenty percent of any additional deficiency assessed for any taxable period for which amnesty was taken. This penalty shall be in addition to all other applicable penalties, fees, or costs. The commissioner shall have the right to waive any or all of the collection penalty when it is demonstrated that any of the deficiency of the taxpayer was not due to negligence, intentional disregard of administrative rules, or fraud. The imposition of penalties or civil proceedings or criminal proceedings shall not invalidate the amnesty that was previously granted. No penalty shall be imposed if the deficiency results from an adjustment made by the Internal Revenue Service to the taxpayer’s federal income tax and the taxpayer provides written notice of the adjustment to the Commissioner within 60 days of receipt of the adjustment from the Internal Revenue Service or if the taxpayer’s application for amnesty was based on a proposed assessment or notice of assessment.
(j) For taxable periods beginning on or after January 1, 2016, and before December 31, 2023, taxpayers that participate in the amnesty and later fail to comply with any payment or filing provision administered by the commissioner shall be subject to the negligence penalty under Section 40-2A-11(c), or a penalty of one hundred dollars, whichever is greater.
","history":"(Act 2015-555, 2nd Sp. Sess., §3.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39201,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38342,"codeId":47348,"versionId":39427,"parentId":47344,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29A-4","shortTitle":"Section 40-29A-4","catchLine":"Advertising Expenses; Disposition of Funds.","title":"Section 40-29A-4 Advertising Expenses; Disposition of Funds.","sectionRange":null,"content":"(a) The commissioner shall also retain an amount not to exceed two hundred fifty thousand dollars ($250,000) for advertising expenses from monies collected from taxes paid pursuant to this chapter. Such amount is appropriated to the department and shall be in addition to any and all other funds heretofore or hereafter appropriated, for the fiscal year beginning October 1, 2015.
(b) After satisfaction of the requirements of Subsection (a), all remaining monies collected pursuant to this chapter shall be paid into the State Treasury and placed in the appropriate state funds for the specific tax collected pursuant to current law.
","history":"(Act 2015-555, 2nd Sp. Sess., §4.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39202,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38343,"codeId":50835,"versionId":null,"parentId":40,"effectiveDate":null,"supersessionDate":null,"type":"Chapter","displayId":"29B","shortTitle":"Chapter 29B","catchLine":"Alabama Tax Delinquency Amnesty Act of 2018","title":"Chapter 29B Alabama Tax Delinquency Amnesty Act of 2018","sectionRange":"§40-29B-1 to §40-29B-9","content":null,"history":null,"numChildren":9,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":39203,"hierarchyLevel":1,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38344,"codeId":50836,"versionId":43095,"parentId":50835,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29B-1","shortTitle":"Section 40-29B-1","catchLine":"Short Title.","title":"Section 40-29B-1 Short Title.","sectionRange":null,"content":"This chapter shall be known as and may be cited as the Alabama Tax Delinquency Amnesty Act of 2018.
","history":"(Act 2018-153, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39204,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38345,"codeId":50837,"versionId":43096,"parentId":50835,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29B-2","shortTitle":"Section 40-29B-2","catchLine":"Definitions.","title":"Section 40-29B-2 Definitions.","sectionRange":null,"content":"For the purposes of this chapter, the following terms have the following meanings:
(1) COMMISSIONER. The Commissioner of the Department of Revenue.
(2) CONTACT or CONTACTED. Previous contact of any kind with the department, or an agent of the department, within two years prior to submitting an initial amnesty application. The term includes returns filed for the tax types included in the application for tax periods beginning before the look-back period. The term includes, but is not limited to, with regard to potential liability for the type of tax identified in the amnesty application, any of the following:
a. An audit or notice of audit.
b. Payment of tax.
c. Registration for tax.
d. Request for extension of time to file.
e. Making a payment of estimated tax.
f. Filing a return.
g. Non-compliance issued in response to an application for a certificate of good standing or a certificate of compliance by the taxpayer or on behalf of the taxpayer.
(3) COURIER. A messenger other than the United States Postal Service that delivers parcels, packages, or similar items containing returns, reports, and other documents or payments.
(4) DEPARTMENT. The Department of Revenue.
(5) LOOK-BACK PERIOD. The last three full tax years or 36 months of eligible tax returns that are delinquent.
(6) POSTMARK. An official mark made by the United States Postal Service on a piece of mail to cancel the stamp and to indicate the place and date of sending.
(7) TAX PERIOD. Any period for which a tax return is required by law to be filed with the department.
(8) TAXPAYER. An individual or entity subject to a tax imposed by this state, payable to this state, and collected by the department.
","history":"(Act 2018-153, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39205,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38346,"codeId":50838,"versionId":43097,"parentId":50835,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29B-3","shortTitle":"Section 40-29B-3","catchLine":"General Criteria.","title":"Section 40-29B-3 General Criteria.","sectionRange":null,"content":"(a) The department shall develop and implement a tax amnesty program in accordance with this chapter. The commissioner may adopt rules necessary for the implementation and administration of the program. The commissioner shall publicize the program in order to maximize public awareness of and participation in the program. The commissioner may publicize the program by contracting with any advertising agency within or outside the state and use public service announcements, pamphlets, mail notices, and print, television, and radio announcements. The publications shall operate to increase public awareness that the program will provide amnesty for taxpayers who have not been contacted by the department in the past two years concerning the tax type for which amnesty is being applied.
(b) The tax amnesty program shall be effective for the period beginning July 1, 2018, and ending on September 30, 2018. The program shall apply to all taxes administered by the department except for motor fuel, motor vehicle, and property taxes.
","history":"(Act 2018-153, §3.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39206,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38347,"codeId":50839,"versionId":43098,"parentId":50835,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29B-4","shortTitle":"Section 40-29B-4","catchLine":"Eligibility.","title":"Section 40-29B-4 Eligibility.","sectionRange":null,"content":"(a) Notwithstanding any provision of law to the contrary, and except as provided in subsection (b) of Section 40-29B-3, the following taxes are eligible for amnesty:
(1) Taxes due prior to January 1, 2017.
(2) Taxes for taxable periods that began before January 1, 2017.
(b) Participation in the amnesty program shall be conditioned upon the agreement of the taxpayer to waive any right to protest or initiate an administrative or judicial proceeding. The agreement shall apply only to the specific tax and the tax period for which amnesty is granted.
(c) Amnesty may be granted only for eligible taxes to eligible taxpayers who have not been contacted by the department in the past two years concerning the tax type for which amnesty has been applied and who apply for amnesty during the amnesty period prescribed by this chapter. Amnesty applications must be submitted in an electronic manner as prescribed by the department.
(d) Amnesty applications shall include a written waiver of all rights, restrictions, delays for assessing, collecting, or protesting taxes and interest due as set forth in Chapter 2A and Chapter 2B of this title. The filing of the applications shall make the applicable tax ineligible for refund, credit, or claim against the state and ineligible for redetermination. A taxpayer shall be eligible for a refund or credit if the overpayment arises after the amnesty application is submitted and is attributable to a properly claimed Alabama net operating loss or an adjustment made by the Internal Revenue Service to the taxpayer’s federal income tax, and the taxpayer provides notice of the adjustment to the commissioner within 60 days of receipt of the adjustment from the Internal Revenue Service. A taxpayer who files an application for amnesty retains all administrative and judicial rights of appeal with respect to any additional tax assessed by the department.
","history":"(Act 2018-153, §4.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39207,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38348,"codeId":50840,"versionId":43099,"parentId":50835,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29B-5","shortTitle":"Section 40-29B-5","catchLine":"Waiver of Interest and Penalties; Look-Back Periods.","title":"Section 40-29B-5 Waiver of Interest and Penalties; Look-Back Periods.","sectionRange":null,"content":"Notwithstanding any provision of law to the contrary, the commissioner shall waive all of the interest and penalties associated with the tax periods for which amnesty is granted. A limited look-back period shall apply separately to each tax type. If the taxpayer has collected any tax without remitting the tax to the department, the look-back period will be extended to include all periods, back to the point of collection.
","history":"(Act 2018-153, §5.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39208,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38349,"codeId":50841,"versionId":43100,"parentId":50835,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29B-6","shortTitle":"Section 40-29B-6","catchLine":"Ineligible Taxpayers.","title":"Section 40-29B-6 Ineligible Taxpayers.","sectionRange":null,"content":"Tax amnesty may not be granted to a taxpayer under any of the following circumstances:
(1) The taxpayer is a party to a criminal investigation or criminal litigation in a court of the United States or this state pending on March 6, 2018, for nonpayment, delinquency, or fraud in relation to any state tax imposed by this state and administered by the department.
(2) The taxpayer has delivered or disclosed a false or fraudulent application, document, return, or other statement to the department in connection with an amnesty application.
(3) The taxpayer has been issued a final assessment in which the appeal period has ended pursuant to Section 40-2A-7.
(4) The taxpayer has entered into a voluntary disclosure agreement with the department before December 31, 2017.
(5) The taxpayer has been granted amnesty for the tax type as part of the Alabama Tax Delinquency Amnesty Act of 2016, Chapter 29A of this title.
","history":"(Act 2018-153, §6.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39209,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38350,"codeId":50842,"versionId":43101,"parentId":50835,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29B-7","shortTitle":"Section 40-29B-7","catchLine":"Amnesty Requirements.","title":"Section 40-29B-7 Amnesty Requirements.","sectionRange":null,"content":"(a) An eligible taxpayer who is granted amnesty for an eligible tax type shall comply with all of the following requirements:
(1) Submit to the department by November 15, 2018, all applicable returns, supporting documentation, and the full payment of the tax. No payment plans will be entered into for taxes that are approved for amnesty. An amnesty payment or return submitted in a properly addressed envelope with sufficient postage delivered by the United States Postal Service is deemed paid or received on the date it is postmarked. An amnesty payment or return delivered by courier or taxpayer is deemed paid or received on the date it is delivered to the department’s headquarters or a regional office.
(2) Include the current year return with the amnesty returns filed for the eligible tax type. Penalties for failure to timely file a return and failure to timely pay in accordance with subsections (a) and (b) of Section 40-2A-11, respectively, shall be waived. Waiver of interest does not apply to current year returns.
(b) No interest shall be paid on refunds for a tax period for which amnesty is granted.
(c) If the taxpayer complies with the provisions of this chapter, the taxpayer is deemed to be in compliance with the department for the tax type for which amnesty was granted.
(d) If the approved taxpayer fails to fulfill all the requirements of this section, the amnesty agreement shall be deemed null and void.
","history":"(Act 2018-153, §7.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39210,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38351,"codeId":50843,"versionId":43102,"parentId":50835,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29B-8","shortTitle":"Section 40-29B-8","catchLine":"Penalties.","title":"Section 40-29B-8 Penalties.","sectionRange":null,"content":"(a)(1) For taxable periods beginning on or after January 1, 2017, and before December 31, 2024, taxpayers that are granted amnesty and later fail to comply with any payment or filing provision administered by the department shall be subject to the penalty for underpayment due to negligence under subsection (c) of Section 40-2A-11, or a civil penalty of one hundred dollars ($100), whichever is greater.
(2) A taxpayer who delivers or discloses a false or fraudulent application, document, return, or other statement to the department in connection with an amnesty application is subject to the penalty for underpayment due to fraud under subsection (d) of Section 40-2A-11, or a civil penalty of ten thousand dollars ($10,000), whichever is greater.
(b) Following the termination of the tax amnesty period, if the commissioner issues a deficiency assessment for a period for which amnesty was taken, the commissioner may impose penalties and institute civil or criminal proceedings as authorized by law only with respect to the difference between the amount shown on the amnesty application and the correct amount of tax due. The commissioner may impose by rule, after the expiration of the tax amnesty period, a cost of collection penalty not to exceed twenty percent of any additional deficiency assessed for any taxable period for which amnesty was taken. This penalty shall be in addition to all other applicable penalties, fees, or costs. The commissioner may waive any or all of the collection penalty when it is demonstrated that any deficiency of the taxpayer was not due to negligence, intentional disregard of administrative rules, or fraud. The imposition of penalties or civil or criminal proceedings shall not invalidate the amnesty that was previously granted. No penalty shall be imposed if the deficiency results from an adjustment made by the Internal Revenue Service to the taxpayer’s federal income tax and the taxpayer provides written notice of the adjustment to the commissioner within 60 days of receipt of the adjustment from the Internal Revenue Service or if the taxpayer’s application for amnesty was based on a proposed assessment or notice of assessment.
","history":"(Act 2018-153, §8.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39211,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38352,"codeId":50844,"versionId":43103,"parentId":50835,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-29B-9","shortTitle":"Section 40-29B-9","catchLine":"Distribution of Proceeds.","title":"Section 40-29B-9 Distribution of Proceeds.","sectionRange":null,"content":"(a) The department shall retain an amount not to exceed two hundred fifty thousand dollars ($250,000) for advertising, programming, and other amnesty related expenses from monies collected from taxes paid pursuant to this chapter. The amount is hereby appropriated to the department and shall be in addition to any and all other funds appropriated for the fiscal year beginning October 1, 2017.
(b) After satisfaction of the requirements of subsection (a), all remaining monies collected pursuant to this chapter shall be paid into the State Treasury and placed in the appropriate state funds for the specific tax collected pursuant to state law.
","history":"(Act 2018-153, §9.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39212,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38353,"codeId":19657,"versionId":null,"parentId":40,"effectiveDate":null,"supersessionDate":null,"type":"Chapter","displayId":"30","shortTitle":"Chapter 30","catchLine":"Electronic Tax Return Filing Act.","title":"Chapter 30 Electronic Tax Return Filing Act.","sectionRange":"§40-30-1 to §40-30-7","content":null,"history":null,"numChildren":7,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":39213,"hierarchyLevel":1,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38354,"codeId":19661,"versionId":15582,"parentId":19657,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-30-1","shortTitle":"Section 40-30-1","catchLine":"Short Title.","title":"Section 40-30-1 Short Title.","sectionRange":null,"content":"This chapter shall be known as and may be cited as the “Electronic Tax Return Filing Act.”
","history":"(Acts 1997, No. 97-493, p. 878, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39214,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38355,"codeId":19666,"versionId":15586,"parentId":19657,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-30-2","shortTitle":"Section 40-30-2","catchLine":"Purpose and Legislative Intent.","title":"Section 40-30-2 Purpose and Legislative Intent.","sectionRange":null,"content":"(a) Purpose. The purpose of the Electronic Tax Return Filing Act is to authorize the Department of Revenue to accept tax returns and other documents of all types filed in electronic commerce without violating other statutes originally drafted for the use of paper returns submitted either personally or through the mail.
(b) Intent of the Legislature. It is recognized that because of constant technological advances, the statutory outline herein for filing tax returns and other documents electronically cannot encompass all of the intricacies in requirements or qualifications currently or into the future. The bulk of the requirements and qualifications must be implemented through the Department of Revenue’s authority to promulgate regulations hereunder. It is the intent of the Legislature to allow the Department of Revenue the necessary flexibility to adopt specific regulations for accepting tax returns by electronic media, to control the integrity of the data submitted, to reduce processing costs and processing times, to aid accuracy, reduce complexities of filing, expedite the processing of refunds to taxpayers, and to update signature and return requirements.
","history":"(Acts 1997, No. 97-493, p. 878, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39215,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38356,"codeId":19673,"versionId":15593,"parentId":19657,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-30-3","shortTitle":"Section 40-30-3","catchLine":"Definitions.","title":"Section 40-30-3 Definitions.","sectionRange":null,"content":"Notwithstanding any other laws or understandings to the contrary, the following terms shall have the following meanings throughout this chapter:
(1) DEPARTMENT. The Alabama Department of Revenue.
(2) ELECTRONIC FILING. The filing of a tax return or other document of any type by any medium acceptable to the department as provided by rule or regulation, which may include but is not limited to the filing of returns and other documents by telephone transmission, electronic transmission, disk transfer, automated clearing-house, value added networks, or magnetic media.
(3) ELECTRONIC RETURN ORIGINATOR. A firm, organization, or person that provides services as an electronic return preparer, or an electronic return collector, or both.
(4) ELECTRONIC RETURN PREPARER. A firm, organization, or person who prepares tax returns including filing declarations, for taxpayers who intend to have their returns electronically filed.
(5) ELECTRONIC RETURN COLLECTOR. A firm, organization, or person who accepts completed tax returns, including filing declarations, for taxpayers who intend to have their returns electronically filed.
(6) FILING DECLARATION. A packet of information that is maintained by the electronic return originator, submitted to the Department of Revenue, or maintained by the taxpayer, in accordance with regulations of the department. The filing declaration includes all documents usually submitted with a tax return which may be more specifically designated by regulation. The filing declaration shall be considered a part of the tax return.
(7) SOFTWARE DEVELOPER. A firm, organization, or person which sells prepackaged software products or develops customized software for formatting returns to electronic filing specifications.
(8) TRANSMITTER. A firm, organization, or person that transmits electronic returns or other documents directly to the department or its designated receiver.
","history":"(Acts 1997, No. 97-493, p. 878, §3.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39216,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38357,"codeId":19679,"versionId":15599,"parentId":19657,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-30-4","shortTitle":"Section 40-30-4","catchLine":"Electronic Filing Acceptance.","title":"Section 40-30-4 Electronic Filing Acceptance.","sectionRange":null,"content":"The department shall have the authority to accept electronically filed returns or other documents of any type which meet the requirements of this chapter and the department’s regulations. Electronically filed returns may be accepted if submitted directly by the taxpayer, or by any entity authorized by the department in accordance with its regulations.
","history":"(Acts 1997, No. 97-493, p. 878, §4.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39217,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38358,"codeId":19685,"versionId":15605,"parentId":19657,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-30-5","shortTitle":"Section 40-30-5","catchLine":"Electronic Filing Return and Signature Requirements.","title":"Section 40-30-5 Electronic Filing Return and Signature Requirements.","sectionRange":null,"content":"(a) Electronic Filing Return. The tax return consists of the electronic transmission and electronic data, and any and all supporting documentation as required by regulation.
(b) Electronic Filing Signature Requirements. The signature requirement for all of the tax returns or other documents required to be filed for any tax or other matter administered by this department will be met if the submission is made pursuant to department regulations. The taxpayer’s and the preparer’s signature in the filing declaration is presumed to be a valid signature of the person with the responsibility for the filing of the tax return. The electronic return preparer shall be responsible for the verification of the taxpayer’s and the preparer’s signature in the filing declaration. In addition, all electronic return originators may be required by the department by regulation to maintain valid and verified signatures and other documents for the department.
","history":"(Acts 1997, No. 97-493, p. 878, §5.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39218,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38359,"codeId":19692,"versionId":15610,"parentId":19657,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-30-6","shortTitle":"Section 40-30-6","catchLine":"Qualification of Electronic Return Originators, Transmitters and Software Developers.","title":"Section 40-30-6 Qualification of Electronic Return Originators, Transmitters and Software Developers.","sectionRange":null,"content":"(a) Generally. Qualified electronic return originators, qualified transmitters, and qualified software developers serve as agents of the Department of Revenue. Qualification with the department as an electronic return originator, transmitter, or software developer does not involve a property right of the party so qualified and such qualification may be revoked by the department at any time. The department may by regulation provide specific and general requirements for qualifications.
(b) Qualification. An entity or person may be qualified with the department as an electronic return originator, a transmitter, or as a software developer upon notification of the entity’s or person’s application. If the application for qualification is not accepted by the department, the party making the application may appeal the decision of the department pursuant to Section 40-2A-8. The department may promulgate regulations for the qualifications of electronic return originators, transmitters, and software developers. The failure of the applicant to meet minimum requirements for electronic return originators, transmitters, or software developers is reasonable cause for the department to deny the application for qualification or to revoke a previously granted application.
(c) Revocation of Qualification for Cause. The department may revoke an accepted qualification at any time for cause. Revocation for cause includes but is not limited to actual fraud or failure to adhere to any regulations of the department. An electronic return originator, transmitter, or software developer whose qualification has been revoked by the department is to be notified of the revocation of qualification by certified mail to their last known address or by actual notice. An entity whose qualification has been revoked may appeal the revocation of qualifications for cause by the same process and subject to the same limitations as an appeal under Section 40-2A-8. A revocation of qualification shall be effective upon the mailing of the revocation notice. This revocation of qualification may be stayed only as provided by subsection (d) of this section during the pendency of any appeal of the decision to revoke their qualification. A revocation of qualification for cause will not be considered a waiver of any other remedy at law or equity which the department may pursue against the party whose qualification is revoked.
(d) Temporary Qualification during Pendency of Appeal from Revocation of Qualification for Cause. If requested by the electronic return originator, transmitter, or software developer a temporary qualification may be granted by the Commissioner of the Department of Revenue to be effective during the pendency of the appeal. As a consideration in the grant of a temporary qualification, the commissioner may require a bond and personal guarantees to protect the interest of the department during the pendency of the appeal. The decision of the commissioner as to whether to grant the temporary qualification is final.
","history":"(Acts 1997, No. 97-493, p. 878, §6.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39219,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38360,"codeId":48907,"versionId":41152,"parentId":19657,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-30-7","shortTitle":"Section 40-30-7","catchLine":"Rulemaking Authority.","title":"Section 40-30-7 Rulemaking Authority.","sectionRange":null,"content":"The department, whenever feasible, shall standardize the method of filing returns, license applications, and methods of payments. The department may prescribe by administrative rule the method of filing tax returns, license applications, and other information related to laws for which the department is responsible for administering as well as the method of payment for such taxes, licenses, and other information in order to standardize these processes whenever feasible. Such rules shall be promulgated in accordance with the Administrative Procedure Act and shall be reviewed every five years in accordance with the Red Tape Reduction Act.
","history":"(Act 2017-227, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39220,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38361,"codeId":45258,"versionId":null,"parentId":40,"effectiveDate":null,"supersessionDate":null,"type":"Chapter","displayId":"31","shortTitle":"Chapter 31","catchLine":"Facilitating Business Rapid Response to Declared Disasters Act of 2014","title":"Chapter 31 Facilitating Business Rapid Response to Declared Disasters Act of 2014","sectionRange":"§40-31-1 to §40-31-4","content":null,"history":null,"numChildren":4,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":39221,"hierarchyLevel":1,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38362,"codeId":45259,"versionId":37442,"parentId":45258,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-31-1","shortTitle":"Section 40-31-1","catchLine":"Short Title.","title":"Section 40-31-1 Short Title.","sectionRange":null,"content":"This chapter shall be known and may be cited as the Facilitating Business Rapid Response to Declared Disasters Act of 2014.
","history":"(Act 2014-157, p. 440, §1.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39222,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38363,"codeId":45260,"versionId":37443,"parentId":45258,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-31-2","shortTitle":"Section 40-31-2","catchLine":"Definitions.","title":"Section 40-31-2 Definitions.","sectionRange":null,"content":"For the purposes of this chapter, the following terms shall have the following meanings:
(1) DECLARED STATE DISASTER OR EMERGENCY. A disaster or emergency event within the state for which either of the following applies:
a. A Governor’s State of Emergency Proclamation has been issued.
b. A presidential declaration of a federal major disaster or emergency has been issued.
c. A joint resolution of the Legislature has been issued.
(2) DISASTER OR EMERGENCY RELATED WORK. Repairing, renovating, installing, building, rendering service, or other business activities that relate to infrastructure, owned or operated by a registered business, municipality, county, or public corporation, that has been damaged, impaired, or destroyed by the declared state disaster or emergency.
(3) DISASTER PERIOD. A period that begins 10 calendar days before the declared state disaster or emergency and that extends for a period of 60 calendar days after the end of the declared state disaster or emergency period, or any longer period authorized by the Governor, the President of the United States, or the Legislature.
(4) INFRASTRUCTURE. Property and equipment owned or used by communications networks, broadband and Internet service provider, cable and video service provider, electric generation, transmission and distribution systems, gas distribution systems, and related support facilities that service multiple customers or citizens including, but not limited to, real and personal property, such as lines, poles, pipes, structures, and equipment.
(5) OUT-OF-STATE BUSINESS. A business entity whose services are requested by:
a. a registered business in the state that owns or operates infrastructure in this state, or
b. a municipality, or public corporation the governing body of which is appointed by a municipality or the governing body thereof, that owns or operates infrastructure in this state, for purposes of performing disaster or emergency related work in the state that meets one of the following tests:
1. During the previous 12 months, the business entity did not have employees in Alabama who were subject to Alabama’s income tax withholding requirements, excluding employees who were in Alabama for previous disaster or emergency related work.
2. The business entity is headquartered outside Alabama and is affiliated through common ownership with the registered business in the state requesting such disaster or emergency related work in Alabama.
(6) OUT-OF-STATE EMPLOYEE. An employee who does not work in the state except for disaster or emergency related work during one or more disaster periods.
(7) REGISTERED BUSINESS IN THE STATE. A business entity that is registered to do business in the state before the declared state disaster or emergency.
","history":"(Act 2014-157, p. 440, §2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39223,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38364,"codeId":45261,"versionId":37444,"parentId":45258,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-31-3","shortTitle":"Section 40-31-3","catchLine":"Temporary Presence and Residency in State for Purpose of Responding to Declared State of Emergency.","title":"Section 40-31-3 Temporary Presence and Residency in State for Purpose of Responding to Declared State of Emergency.","sectionRange":null,"content":"(a) An out-of-state employee performing disaster or emergency related work on infrastructure owned or operated by a registered business, municipality, county, or public corporation shall not be considered to have established residency or a presence in the state that would require that person or his or her employer to file and pay income taxes or to be subject to tax withholdings or to file and pay any other state or local tax or fee which is based on a physical presence in the State of Alabama or with a local taxing jurisdiction during one or more disaster periods. This includes any related state or local employer withholdings and remittance obligations, but does not include any transaction taxes and fees as described in subsection (d).
(b) Any out-of-state business that has no registrations or tax filings or nexus in the state prior to a declared state disaster or emergency that enters the state solely to conduct operations within the state for purposes of performing disaster or emergency related work during any disaster period shall not: (1) With respect to the requirements of Alabama law other than those codified in Title 37, be considered to have established a level of presence that would require that business or its out-of-state employees or property to be subject to any state or local taxes, licensing, registration, or filing requirements including, without limitation, state or local income taxes, payroll taxes, occupational and business licensing fees, privilege or franchise taxes, certification requirements, or Secretary of State licensing requirements, and (2) with respect to the requirements of Title 37, be subject to the certification requirements of Section 37-2-4 or Section 37-2A-9. Except as expressly provided in the preceding sentence, nothing in this chapter shall be construed to amend or affect any other provisions or requirements of Title 37. For the purpose of apportioning income, the payroll, sales or gross receipts, and property of the business related to the conduct of disaster or emergency work shall not be sourced or taxable to or by the state or any locality. The out-of-state business shall also not be subject to any use tax or ad valorem tax on equipment brought into the state during a disaster period for use or consumption during the disaster period. Business that is conducted in this state pursuant to this chapter shall be disregarded with respect to whether a return must be filed for such tax or fee including any filing required for a unitary or combined group of which the out-of-state business may be a part.
(c) Any out-of-state business that has registrations or tax filings or nexus in the state prior to a declared state disaster or emergency shall not: (1) With respect to the requirements of Alabama law other than those codified in Title 37, be considered to have established an additional level of presence, to the extent such business conducts additional operations within the state for purposes of performing disaster or emergency related work on infrastructure owned or operated by a registered business, municipality, county, or public corporation during any disaster period, that would require that business or its out-of-state employees or property to be further subject to any state or local taxes, licensing, registration, or filing requirements including, without limitation, state or local income taxes, occupational and business licensing fees, payroll taxes, privilege or franchise taxes, certification requirements, or Secretary of State licensing requirements, except for transaction-based taxes provided for in subsection (d) and (2) with respect to the requirements of Title 37, be subject to the certification requirements of Section 37-2-4 or Section 37-2A-9. Except as expressly provided in the preceding sentence, nothing in this chapter shall be construed to amend or affect any other provisions or requirements of Title 37. For the purpose of apportioning income, the payroll, sales or gross receipts, and property of the business related to the conduct of disaster or emergency work shall not be sourced or taxable to or by the state or any locality. The business shall also not be subject to any use tax or ad valorem tax on equipment brought into the state during a disaster period for use or consumption during the disaster period. Business that is conducted in this state pursuant to this chapter shall be disregarded with respect to whether a return must be filed for such tax or fee including any filing required for a unitary or combined group of which the out-of-state business may be a part.
(d) Except as otherwise provided in subsections (b) and (c), nothing in this chapter shall exempt an out-of-state employee and out-of-state business from paying transaction-based taxes and fees during the disaster period including, but not limited to, fuel taxes, lodging taxes, and automobile leasing taxes.
(e) Any out-of-state employee or out-of-state business that remains in or otherwise enters the state after one or more disaster periods shall thereafter become subject to the state’s normal standards for establishing presence, residency, or doing business in the state, state and local registration requirements, licensing requirements, filing requirements, and employee and business tax requirements, but not retroactive to the disaster period.
(f) An out-of-state business, upon request, shall provide to the Secretary of State and to the Department of Revenue a statement that the business is in the state for the purpose of responding to the declared state disaster or emergency, which statement shall include the name of the business, state of domicile, principal business address, federal taxpayer identification number, date of entry, and contact information.
(g) A registered business in the state, upon request, shall provide the information required in subsection (f) for any affiliate that is an out-of-state business, including contact information for the registered business.
(h) Nothing in this chapter shall be interpreted to exempt any out-of-state business, out-of-state employee, or individual from securing and paying applicable license and related fees imposed by professional licensing boards of the State of Alabama.
","history":"(Act 2014-157, p. 440, §3.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39224,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38365,"codeId":45262,"versionId":37445,"parentId":45258,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"40-31-4","shortTitle":"Section 40-31-4","catchLine":"Diversity in Selection and Hiring Encouraged.","title":"Section 40-31-4 Diversity in Selection and Hiring Encouraged.","sectionRange":null,"content":"A registered business in the state and any out-of-state business whose services are requested by a registered business in the state are encouraged to be aware of the need for diversity in the selection or hiring of vendors, contractors, or other business entities whose services are required or requested during a disaster period.
","history":"(Act 2014-157, p. 440, §4.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39225,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38366,"codeId":41,"versionId":null,"parentId":null,"effectiveDate":null,"supersessionDate":null,"type":"Title","displayId":"41","shortTitle":"Title 41","catchLine":"State Government.","title":"Title 41 State Government.","sectionRange":null,"content":null,"history":null,"numChildren":42,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":39226,"hierarchyLevel":0,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38367,"codeId":45,"versionId":null,"parentId":41,"effectiveDate":null,"supersessionDate":null,"type":"Chapter","displayId":"1","shortTitle":"Chapter 1","catchLine":"General Provisions.","title":"Chapter 1 General Provisions.","sectionRange":"§41-1-1 to §41-1-94","content":null,"history":null,"numChildren":6,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":39227,"hierarchyLevel":1,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38368,"codeId":46,"versionId":null,"parentId":45,"effectiveDate":null,"supersessionDate":null,"type":"Article","displayId":"1","shortTitle":"Article 1","catchLine":"In General.","title":"Article 1 In General.","sectionRange":"§41-1-1 to §41-1-15","content":null,"history":null,"numChildren":15,"isBranchNode":true,"isEmptyBranch":false,"isContentNode":false,"sortOrder":39228,"hierarchyLevel":2,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38369,"codeId":47,"versionId":37432,"parentId":46,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"41-1-1","shortTitle":"Section 41-1-1","catchLine":"Sovereignty and Jurisdiction of State; Territorial Waters; Legislative Findings.","title":"Section 41-1-1 Sovereignty and Jurisdiction of State; Territorial Waters; Legislative Findings.","sectionRange":null,"content":"(a) The sovereignty and jurisdiction of the state extend to all places within the boundaries of the state, but the extent of the jurisdiction over places that have been or may be ceded to the United States is qualified by the terms of the cession.
(b) The limits and boundaries of the territorial waters of the State of Alabama for management and protection of marine resources shall consist of all territory included within the boundaries described in the Act of Congress of March 2, 1819, together with all territory ceded to the State of Alabama by later acts of Congress or by compacts or agreements with other states or the United States, extending seaward to a distance of three Marine Leagues.
(c) The Legislature hereby finds, determines, and declares the following:
(1) Significant inequitable disparities exist in the limits and boundaries of the territorial waters among the Gulf Coast States of Texas, Florida, Louisiana, Mississippi, and Alabama.
(2) These inequities have resulted in economic and recreational losses to the State of Alabama, its political subdivisions, and its citizens.
(3) It is the policy and purpose of the State of Alabama by this section to place itself on an equal footing with the other Gulf Coast States with regard to the limits and boundaries of the territorial waters of the State of Alabama for management and protection of marine resources.
(4) This subsection shall be liberally construed to effect the policy and purposes hereof.
","history":"(Code 1852, §18; Code 1867, §19; Code 1876, §15; Code 1886, §15; Code 1896, §3749; Code 1907, §2056; Code 1923, §2993; Code 1940, T. 55, §10; Act 2014-243, p. 774, §§1, 2.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39229,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38370,"codeId":48,"versionId":2,"parentId":46,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"41-1-2","shortTitle":"Section 41-1-2","catchLine":"Maintenance and Defense of State Authority and Jurisdiction.","title":"Section 41-1-2 Maintenance and Defense of State Authority and Jurisdiction.","sectionRange":null,"content":"It is the duty of the Governor and of all the subordinate officers of the state to maintain and defend its authority and jurisdiction.
","history":"(Code 1852, §19; Code 1867, §20; Code 1876, §16; Code 1886, §16; Code 1896, §3750; Code 1907, §2057; Code 1923, §2994; Code 1940, T. 55, §11.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39230,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38371,"codeId":49,"versionId":3,"parentId":46,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"41-1-3","shortTitle":"Section 41-1-3","catchLine":"Compromise of Claims in Favor of State.","title":"Section 41-1-3 Compromise of Claims in Favor of State.","sectionRange":null,"content":"The Governor, Attorney General, and Auditor have authority to adjust, compromise and settle, on such terms as to them may seem just and reasonable, any doubtful claim of the state against any person or corporation, or any public officer, or his or her sureties, or because of the negligence or default in the safekeeping, collection, or disbursement of the public moneys, funds, or property by any officer having charge or custody of either. Such settlement or compromise being made, the Governor must file a statement thereof in the Office of the Treasurer, showing the nature and character of the claim, the terms of the settlement or compromise and the reasons for the making thereof.
","history":"(Code 1886, §§70, 71; Code 1896, §§3753, 3754; Code 1907, §§2441, 2442; Code 1923, §§5645, 5646; Code 1940, T. 55, §§12, 13.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39231,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"},{"id":38372,"codeId":50,"versionId":4,"parentId":46,"effectiveDate":null,"supersessionDate":null,"type":"Section","displayId":"41-1-4","shortTitle":"Section 41-1-4","catchLine":"When Bonds of State Payable.","title":"Section 41-1-4 When Bonds of State Payable.","sectionRange":null,"content":"Any bonds which may be issued by the Governor of Alabama for the purpose of renewing or funding the bonded debt of this state shall be made payable and subject to redemption at any time not exceeding 50 years from the date of issue of said bonds.
","history":"(Code 1907, §82; Code 1923, §84; Code 1940, T. 55, §14.)","numChildren":0,"isBranchNode":false,"isEmptyBranch":false,"isContentNode":true,"sortOrder":39232,"hierarchyLevel":3,"createdAt":"2025-10-06T13:54:25.000Z","updatedAt":"2026-10-02T05:05:11.000Z"}]