[Southlander]

I'm no expert, but I do have to pay the sales tax for our company every month, so here is a FAQ from the Alabama Department of Revenue: ADOR - Sales & Use Tax - FAQs

Basically, Alabama charges sales tax on everything except: prescription drugs, gasoline and motor oil (kerosene and fuel oil are taxable), fertilizer/insecticides/fungicides when used for agricultural purposes, seeds for planting purposes, feed for livestock and poultry (not including prepared food for dogs and cats), baby chicks and poults, livestock, sales to the U.S., State of Alabama and other governmental agencies of the State of Alabama, labor to repair or install property is exempt as long as it is billed as a separate item on the customer's invoice (labor to fabricate an item is not exempt).
Note: gasoline and motor oil have their own separate taxes.

Alabama sales tax: 4%
Counties and cities charge their own sales taxes. Total sales taxes can range from 6% to 9.5%. For example, in Decatur: Alabama, 4%; Morgan County, 2%; City of Decatur, 3% = total 9%.

Lodging taxes (hotel rooms) are separate and added.
Food - groceries and prepared foods in restaurants - are taxed. Vehicle sales taxes are a different rate. Private vehicle sales are taxed when you go to buy the tag.

Alabama also has something called a "consumers use tax." This is a sales tax on anything you buy out of state and bring into the state. For instance, if you order something from a catalog or over the internet, you are supposed to pay a 4% sales tax, filing it with the state individually, IF it is not assessed by the seller and paid to the state. (I wonder how many people actually do that??)

[NicoleC]

Thanks. I wasn't aware they didn't charge on prescription meds; that's good to know.

[Socal2Bham]

Originally Posted by Southlander

Alabama also has something called a "consumers use tax." This is a sales tax on anything you buy out of state and bring into the state. For instance, if you order something from a catalog or over the internet, you are supposed to pay a 4% sales tax, filing it with the state individually, IF it is not assessed by the seller and paid to the state. (I wonder how many people actually do that??)

We (my company) have to keep track of purchases made outside of the state and shipped or moved into AL because we do have to report it to the state of AL. I belive this is the same with Missouri.

And just incase the IRS is watching........sure I do this personally as well.

[ColdCanadian]

Originally Posted by Southlander

Basically, Alabama charges sales tax on everything except: prescription drugs, gasoline and motor oil...

Note: gasoline and motor oil have their own separate taxes.

Nice!

Where I live gasoline and motor oil also have their own taxes, yet they tax this tax too, meaning they charge 8% sales tax on top of the gasoline taxes.

One gas station had a sticker with the price breakdown.
Roughly 2/3rds the cost of gasoline is tax here... so I figured I pay more tax buying gasoline than I do paying income tax.

[Bravo35223]

I guess everyone in the world is sick of high taxes....I know I am.

[Socal2Bham]

Besides the food tax, the 2 taxes that really tick me off are probate tax and when you get a refund from the IRS because you over paid the year before and then they count that refund (giving you your own money back!) as income the next year and tax you on it again! Grrrr.

[Bravo35223]

Originally Posted by Socal2Bham

Besides the food tax, the 2 taxes that really tick me off are probate tax and when you get a refund from the IRS because you over paid the year before and then they count that refund (giving you your own money back!) as income the next year and tax you on it again! Grrrr.

I know i am threadjacking but are you taking your kids trick or treating tonight? IF so, I was going to suggest a great neighborhood.

Pls let me know.

j

[Southlander]

Originally Posted by Socal2Bham

Besides the food tax, the 2 taxes that really tick me off are probate tax and when you get a refund from the IRS because you over paid the year before and then they count that refund (giving you your own money back!) as income the next year and tax you on it again! Grrrr.

Not to mention the "self-employment tax", plus the penalties you pay when you UNDERpay quarterly estimated taxes...AND when you OVERpay! GRRR!

[Socal2Bham]

Originally Posted by Bravo35223

I know i am threadjacking but are you taking your kids trick or treating tonight? IF so, I was going to suggest a great neighborhood.

Pls let me know.

j

Uhhhhhh, are you talkin' to me?! I don't have any kids, unless you count my "fur-kid" or my immature boyfriend.

[ColdCanadian]

Originally Posted by Socal2Bham

and when you get a refund from the IRS because you over paid the year before and then they count that refund (giving you your own money back!) as income the next year and tax you on it again! Grrrr.

OUCH!
I don't think we have that in Ontario.
I'll gladly pay my 8% sales tax on my gasoline now.